More than three-quarters (76%) of employees do not understand their benefits package, least of all dental perks, income protection, childcare vouchers and critical illness cover.
More than 70% of respondents to the Oval Insurance ReWard Employee Benefits Survey carried out by YouGov, meanwhile, said they do not understand how creative benefits such as bikes for work and leisure vouchers apply to them.
The survey also indicated that employers do not fully communicate what benefits are available to staff. When asked how employers could provide employees with a better understanding of their benefits package, total reward statements came out on top.
Of those respondents who receive a total reward statement, 69% said they now have a much better understanding of the value of their benefits package.
Chris Metz, head of employee benefits at Oval Financial services, said: “Providing a bells-and-whistles reward package is just not enough. A company needs to know exactly what their employees really want, otherwise they are just throwing away millions of pounds with little return on their investment.”