A recent study reveals that nearly one in five employers do not actively promote the use of employee benefits, leaving it to employees to initiate.
- Employee benefits require significant investment, yet many remain underutilized as employers fail to encourage their use.
- When not actively promoted, employee benefits often fall by the wayside, risking budget cuts and diminishing value.
- Effective use of benefits is crucial for employee retention, as initial enthusiasm during recruitment must be maintained.
- The value of benefits correlates strongly with their utilization, urging employers to adopt strategies that promote consistent engagement.
Research from GRiD highlights a notable gap, with 18% of employers leaving the uptake of employee benefits to the discretion of the employees themselves. These benefits, while representing a substantial investment by companies, often remain underutilized, effectively rendering them a wasted resource without active encouragement.
Employers typically leverage employee benefits to attract new hires, functioning as a key differentiator in the recruitment process. However, GRiD warns of the pitfall that arises when this enthusiasm doesn’t continue into the employee’s tenure, leading to potential dissatisfaction and impact on retention. Consistency in promoting these benefits is necessary to ensure their effectiveness.
While it would be inaccurate to claim that benefits only matter when they are fully used, there is a clear link between the extent of their utilization and their perceived value by the employees. Without guidance, employees may overlook opportunities, unaware of the full spectrum of benefits available to them, consequently missing out on valuable resources.
Employee benefits that are rarely used face the risk of being eliminated, especially in tightened budget scenarios. This outcome poses significant loss not only for the employees but also for human resources, which would have invested considerable effort in their implementation and provider selection.
Engaging newly recruited employees, who are generally more receptive to benefit programs, remains a strategic advantage. Nevertheless, for sustained benefit engagement, adjustments in approach may be required for longer-term employees to maintain interest and participation.
Katharine Moxham from GRiD encapsulates the situation aptly: “Employees who have positive experiences are likely to communicate these advantages to their peers, fostering a culture of engagement. Yet, employers must avoid complacency and strategically promote benefit utilization.”
Active promotion of employee benefits is essential for maximizing their value and fostering a committed workforce.
