Employee Benefits Can Drive Loyalty & Engagement
Over a third of employees state that the benefits employers offered them on top of their salary and holiday entitlements increased their loyalty to their employer.
A study has found that 35% of employees were more likely to stay within their job due to their benefits package, with 33% of staff stating that they felt more valued due to the benefits they are offered by their employer. The findings from this just show how important benefits are in driving loyalty and helping with retention.
Employee benefits have been found to have the biggest effect on younger staff, with 58% of 18-24 year olds saying additional benefits boosted their loyalty. The benefits package an employer offers makes 56% of 18-24 year olds feel valued.
Employee benefits can improve loyalty and engagement but underlying challenges for employers include communicating their benefits packages. Only 23% of employers were satisfied with communication from their employer about their benefits compared with 45% who are dissatisfied. Satisfaction with communication about pension and retirement issues was also found to be relatively low despite the recent focus on workplace pension auto-enrolment with 28% stating that they were satisfied compared with 39% who were dissatisfied.
From this, it can be seen that employee benefits, when communicated well, can aid employees’ emotional or psychological contract with their employer. Employee loyalty matters as it helps to create a stable base for employers.
In order to improve this, communication is vital to ensure that employees are fully aware of their benefits and understand what is being provided.