Only 27% of employers believe monitoring and controlling return on investment (ROI) for their employee benefits spend should be a formal business objective.
Just one in 10 organisations, meanwhile, said they had formal procedures in place to measure ROI, according to research published by HSBC Actuaries and Consultants (HACL).
A number of organisations also said they lacked the policies and procedures to monitor employee engagement. Although more than half (51%) of respondents agreed or strongly agreed that employee engagement was a formal objective for their organisation, over 45% of these said they had no procedures in place to increase and monitor employee engagement.
Also, more than half (51%) disagreed, strongly disagreed or did not know whether their organisation had formal procedures in place to increase and monitor employee engagement.
Mark Pemberthy, head of flexible and employee benefits at HACL, said: “Employers still have much work to do in understanding and monitoring which benefits deliver a tangible return on investment, thereby enabling them to take a more strategic approach to managing their employee benefits spend.”