Demand for benefits remains high

Employers need to reflect on the demand for employee
benefits, so says a new survey, typified by the revelation that only six percent
of employees receive income protection despite its growing importance

Research from Canada Life Group Insurance reveals
that although pensions continue to be the most important benefit to employees,
income protection has overtaken a generous holiday allowance to become the
second most valued benefit. Despite the increase in importance of this product,
only 6% of employees receive income protection as part of their benefits
package.  Only 10 percent of full-time employees are covered. The most commonly
received benefits are pensions (45 percent) and good holiday packages (35
percent).   

Over the past year benefits
in general have become more valuable. 52 percent of employees, from the 2009
survey see benefits as important, compared with only 40 percent last year, yet
36 percent of employees do not receive any benefits at all. A  third of men don’t receive benefits, with
this increasing to 68 percent of women. Employee benefits are also proving to
be a determining factor when looking to move jobs.  Almost half of
respondents (48 percent) claimed they would change jobs for the same salary but
better benefits, and 52 percent take benefits into consideration when looking
to move jobs, particularly those in full time roles (61 percent). In addition,
52 percent would give up a percentage of their salary in exchange for benefits,
up from 40 percent last year.   

Paul Avis, Sales and
Marketing Director, comments: “Pensions are the most commonly received benefit
by employees, but the value of them can often be ignored in the short-term. Employees
are becoming more concerned with benefits that are immediately accessible and
provide security, such as income protection. Their appeal now outweighs
supplementary benefits such as good holiday packages. “Benefits are now so
important to employees that they include them in their decision making process
when moving jobs. In a tough market place where employers are working hard to
retain their top talent, they need to work to close up the difference between
the benefits they offer and what employees actually want.”

4 May 2010
Human Resources news brought to you by theHRDIRECTOR ; the only independent strategic HR publication.