The top ten HR trends shaping the future of employee benefits

According to our Responding to the cost of living crisis report, more than half (55%) of 18-34 year-olds believe that a good benefits package is the most important thing they look for when searching for a job, with 42% of the general workforce sharing this sentiment.

Therefore, it’s imperative employers ensure their benefits offering is fit for purpose if they wish to attract and retain the talent that will help their business to thrive as the UK’s economy looks to bounce back.

To help you shape that offering, here are the top 10 trends we’re seeing in HR and how they’re impacting benefits packages and the employee experience.

Even the most cost-effective benefits can be extremely successful if they effectively meet the individual needs of your employees. The key to ensuring you’re offering the right benefits to the right people at the right time is good communication – however, there is often a disconnect between employer and employee. Our research has revealed more than half (56%) of employees don’t use their benefits as they’re not relevant to them and their personal situation.

For far too long, neurodiverse talent has lacked the support needed to maximise their potential. We found four in ten (38%) businesses have seen an increase in the number of neurodiverse employees over the past year, and 31% believe that neurodiverse employees have made their business more profitable. Despite this, half (49%) of neurodivergent employees tell us they feel poorly supported by their employer – it’s crucial that businesses engage with their neurodiverse employees to ensure they’re offering the right benefits in an accessible manner and making the necessary changes in the workplace to allow these employees to thrive.

As the cost of doing business has soared over the last few years, HR leaders are increasingly looking to partner with technology providers who empower them to streamline a greater range of processes, offering significant savings on both time and capital. For benefits platforms, this demands greater accuracy on automating routine tasks, eliminating errors, enhanced communication and ensuring employees receive the correct benefits without delay.

Ensuring your chosen benefits technology platform has higher engagement rates amongst employees is good for your workforce as well as for your bottom line. Whilst engagement rates for most benefits platforms sit at around 50%, Zest’s partners typically see up to 90% engagement – a figure driven by the simplicity of our platform and the ability to introduce new benefits as required.

Talking of engagement, you also need to make sure your benefits are available wherever, and however, your employees work. This can be achieved by teaming a mobile app with your platform. “When we launched with Zest, our engagement rate went to 88%,” explained Suzie Blackburn, Talent and Reward Manager, Aliaxis. “The key aspect is the mobile app. People working in the operational part of the business just never had the opportunity to engage with a platform and look through their benefits. Now they have that because of the app.”

With the UK government pushing hard to reach net zero by 2050, our research has revealed that people now expect their employer to adopt a similar mindset. Over half (53%) would like to see their company investing more in sustainable benefits, such as electric vehicles and sustainable pensions, rising to two-thirds (66%) of 18-34 year-olds. And more than a third (36%) say sustainable benefits are now the most important benefits to them, rising to 50% of 18-34 year-olds.

Whilst there is cautious optimism the worst of the cost of living crisis is behind us, it’s still having an impact. And our research has highlighted there is often a mismatch between what businesses are offering and what their employees actually want. For example, a quarter (25%) of employees want their employer to help with their energy costs at home, and a similar figure (21%) want discounts at popular high-street shops – yet few businesses offer this.

Financial stability and mental health are intrinsically linked. As a result of the cost of living crisis, paid mental health leave has emerged as the most popular wellbeing benefit amongst UK employers, with a quarter (24%) of businesses now offering it. This also tallies with recent research from Deloitte, highlighting that for every £1 spent on workforce mental health and wellbeing, employers see £4.70 in increased productivity.

Family comes first for employees throughout the UK. The good news is that businesses are taking note, with a third (32%) of businesses telling us they now offer maternity and paternity support to their employees, and 25% are offering childcare support – which is welcome with costs rising rapidly.

When employees engage properly with your benefits platform, they’re much more likely to identify and buy benefits that suit their personal requirements – and therefore more likely to be satisfied and trust your ability as an employer to deliver the support they need. And that’s crucial for retention – our research has revealed that more than two-thirds (67%) of 18-34 year olds would simply walk away from their current job if another prospective employer offered them a better benefits package.

The right employee benefits technology can help you to stay on top of these trends, and deliver relevant, personalised, and effective benefits that will match your employees’ evolving needs. Without it, you risk missing out on the talent that can take your business to the next level.