EXCLUSIVE: More than three-quarters (82%) of employer respondents offer benefits because they are an effective retention tool, according to research by Employee Benefits and Staffcare.
The Benefits research 2017, which surveyed 271 employer respondents in February-March 2017, also found that 81% of respondents provide employee benefits because they are an effective recruitment tool.
Since the inaugural Benefits research was published in 2004, the political and economic landscape has undergone considerable change. Yet, while this has inevitably impacted businesses in myriad ways, employers’ rationale for offering benefits has changed little over the years. In 2017, just as in 2004, the effectiveness of benefits as a recruitment and retention tool are the top reasons respondents offer benefits for staff.
The role of benefits in supporting employee health and wellbeing, the part they can play in supporting the employer brand, and keeping up with either industry or regional competitors have also consistently remain towards the top of the list of reasons why respondents offer benefits over the past 13 years.
However, some factors impacting this decision are no longer as popular as they once were. For example, this year just over a quarter (27%) of respondents say they offer benefits because they are good value for money. Although this is in line with the 26% that said the same in both 2016 and 2014, it has dropped considerably from 64% in 2009 and 50% in 2011.