![Photo by Shutterstock. Photo by Shutterstock.](/images/transform/v1/crop/frm/234396468/54c13a4e-6dc3-40fb-9b6f-05e3e535eaf3.jpg/r0_0_1000_667_w1200_h678_fmax.jpg)
This is branded content.
Subscribe now for unlimited access.
or signup to continue reading
The workforce landscape has shifted dramatically in the last few decades. The widespread influx of women into the workforce, significant developments in technology, and, more recently, the COVID-19 pandemic have changed the ways we work and the expectations of employees.
Understanding the wants and needs of employees plays an important role in maintaining the retention of their services. Many businesses offer a range of benefits to their workers in the hope of attracting the best talent possible and then retaining it for an extended period.
These benefits or perks are on top of a regular salary or pay and are often available irrespective of the employee's performance.
Common perks offered by businesses may include a work car, expensed meals, extra holidays, generous overtime, professional development such as funding a diploma, or allowances to study the best MBA online. In the USA, good health benefits are often the top priority.
How employees view benefits
Research has indicated that employee benefits are most effective when they generate "positive social exchange relationships".
A positive social exchange relationship is the relationship between employers and employees where the employees believe the benefits are special or additional gifts from the employer, and they therefore reciprocate with extra effort, loyalty, and dedication to the employer.
This means for example, legislated 'benefits' such as Australian workers receiving an 11% employer contribution to superannuation do not result in the same reciprocative efforts from the employee, as they are already legally entitled to it.
An additional percentage on top of the mandated 11% however, would likely be viewed as an extra benefit, so in this instance, the employee would be more inclined to feel grateful and reciprocate more generously.
What benefits work
There are three primary reasons a business provides employees with benefits; to attract talent, improve employee effort and loyalty, and retain workers.
But what benefits actually support an employee and help achieve these outcomes?
Research was undertaken by PwC Australia to understand the views and opinions of Australian employees and employers.
The company surveyed over 1,800 workers from the frontline to the back office and determined that 38% plan to leave their jobs over the next 12 months, yet only 48% of business leaders had no plans to redesign their Employee Value Proposition.
To address the retainment of employees, it was clear that businesses need to review their Employee Value Proposition. According to those surveyed, there were seven key benefits employees considered most important.
Remuneration and reward
25% of workers surveyed conceded that remuneration and reward were the key considerations when looking at their place of work. This was not restricted to salary, however - it included bonus and profit-share schemes, superannuation, discounts and lifestyle benefits such as subsidised childcare, parking, financing or product discounts.
Benefit idea: End-of-year bonus scheme.
Wellbeing
Wellbeing followed remuneration closely with 22% of workers valuing this. Wellbeing referred to a number of benefits including mental health support, paid gym memberships, financial support for training, courses and upskilling, and a strong stance from the business on healthy work-life balance.
Benefit idea: Additional leave allocated for mental health days.
Experience
Having a good day-to-day working experience attracted 16% of workers. Initiatives like culture, diversity and inclusion, relationship building, networking (both formal and informal), team spirit and energy and having good co-workers all contribute to employee experience and businesses do have a strong level of control over this.
Benefit idea: Calendar of employee events such as celebrating quarterly wins with a catered event, get-togethers for significant holidays, fun days like "International Donut Day" and team building days.
Ways of working
12% of surveyed workers had benefits that fell into ways of working as their top priority. Ways of working included technological enablement, ensuring set-up from day one, flexibility, travel, autonomy and collaboration.
Benefits idea: One-off "set up" bonus to employees to purchase or upgrade their home desk, office chair etc.
Career development
Coming just under ways of working, 11% of workers considered career development their most important need. Learning and upskilling, quality of leadership, access to mentoring and coaching, career pathways and opportunities and secondments all sit under career development.
Benefit idea: Financed courses or upskill learning opportunities.
Brand
Brand pulled in 8% of workers and included the prestige/affiliation of the brand, ESG and social responsibility, volunteering and value alignment with the employee.
Benefit idea: Additional leave allocated for volunteer activity days.
Workspaces and places
5% of those surveyed considered workplaces and places number one. The physical office design, workspace perks such as free coffee or food, location, technology set up and working from home/a hybrid work environment all come under this category.
Interestingly, although workspaces and places ranked number 1 for just 5% of workers, overall 'working from home' was ranked the 9th most important initiative from a significant list.
Benefit idea: A reasonable balance of work from home and office days, with benefits such as free food and drink for office days.
The gap between employers and employees
The most interesting data to come from the PwC Australian however was not the understanding of what employees in Australia want, but rather the sizable gap between what the workers want and what the senior leaders think their people want. A few of the standout discrepancies in values included;
- Value alignment between worker and organisation
- Leader ranked: 1st
- Employee ranked: 16th
- Leader ranked: 1st
- Employee ranked: 16th
- On the job learning
- Leader ranked: 2nd
- Employee ranked: 13th
- Leader ranked: 2nd
- Employee ranked: 13th
- Working from home
- Leader ranked: 17th
- Employee ranked: 9th
- Leader ranked: 17th
- Employee ranked: 9th
- Working with good coworkers
- Leader ranked: 13th
- Employee ranked: 1st
- Leader ranked: 13th
- Employee ranked: 1st
- Pay (incentives, bonuses and share schemes)
- Leader ranked: 8th
- Employee ranked: 3rd
- Leader ranked: 8th
- Employee ranked: 3rd
It is clear employers and leaders are somewhat misguided when it comes to their workers' preferences, which can ultimately have a significant financial impact on a business.
The misdirection of resources towards initiatives that don't deliver the loyalty and drive desired can be extremely costly, and the sooner the gap is closed between the two parties the better off and happier the business, its leaders and employees will become.