Staff don’t value benefits enough, companies rue

A sizeable 43 per cent of Indian companies are of the opinion that their employees do not sufficiently value the benefits provided to them, despite the fact that one in three Indian employers spend more than 20 per cent of total payroll on benefits.

Low employee awareness and appreciation has initiated a change in mindset with most companies .

According to a study by Towers Watson, a global professional services company, rising benefit costs and its low perceived value are driving companies to review their benefit strategy.

Rising inflation and increasing costs of employee benefits mean companies are increasingly under pressure to review their benefit strategy, with 60 per cent planning to do so in the next 12 months, according to the study.

It has pointed out that half the employers who were respondents to the survey believe that poor employee understanding of benefits is a serious challenge.

Employers are beginning to acknowledge the importance of communication in improving the perceived value of benefits with 73 per cent of companies ranking increased employee communication as a key action area in the next 12 months. The study showed that employers also recognise the need for innovation with almost one-third offering or planning to offer non traditional benefits and an equal number planning to introduce flexible benefits .

Anuradha Sriram of Towers Watson India said, “As the war for talent intensifies, employee benefits have gradually emerged as a powerful tool to attract and retain key talent and are increasingly being leveraged to enhance the employee value proposition.”