EXCLUSIVE: Less than one-third (30%) of employer respondents use people analytics to calculate the cost, impact, and return on investment (ROI) of reward and benefits in their organisation, according to research by Equiniti.
Its survey of 202 employers, conducted by Employee Benefits, also found that 59% of respondents cite an inability to justify additional spending as a reason why they are unable to enhance their reward and benefits programmes.
The research also found:
- 81% of respondents who know how much they spend on reward and benefits as a percentage of payroll, spend less than 20% of payroll.
- Just over one in 10 (11%) respondents offer financial education to their employees.
- Among respondents who spend a portion of their HR budget on helping employees with retirement planning, 7% is the average amount of their HR budget these respondents spend.
- Attracting and retaining top talent is one of the key drivers for offering a reward and benefits package, yet the average amount of HR budget spent on career progression is 16%, while 46% of HR budget is spent on inductions.
Ric Williams (pictured), chief executive officer at EQ Paymaster, part of the Equiniti group, said: “HR should have some of the best data in the business. Our survey has shown that [it is] still struggling to fully harness the power of that data. Very few, only 12%, are actually collating it and making use of it.
“A business-led approach to HR makes it easier to justify investment in HR initiatives and also generates much stronger executive support. Our findings suggest HR has the opportunity to gain more visibility, pull together data from across the business and, in turn, demonstrate ROI.”
Andrew Woolnough, director, employee platform and engagement at EQ Paymaster, added: “Improving the employee experience brings proven benefit to the bottom line. Part of the challenge HR faces is justifying the investment in an integrated reward and benefits strategy. Our survey highlights the need to align HR measures to business metrics, for example, how employee advocacy builds corporate brand value or the impact of career opportunities on profit growth.”