Employers are planning a major overhaul of their workplace benefits packages in the next two years including a greater equalisation of benefits to all employees, including female and mental health.
The moves are likely to come as organisations aim to make their schemes better fit business goals and address the growing importance of wider societal values, according to Howden.
Research conducted by the advice firm with 181 members of the Reward & Employee Benefits Association (REBA) covering 1.2 million employees found:
- 60% of employers’ benefits strategies are not aligned with business goals;
- 90% of employers will make changes to their benefits design over the next two years;
- 46% of businesses plan to increase benefit spend in next two years; and
- 85% of employers will be offering further personalisation of benefits by 2024.
Female and mental health important
The firms noted that recruitment and retention remained at the forefront of businesses’ strategy and design for benefit schemes.
However, changing societal values (72%), such as Diversity, Equity and Inclusion (DEI) and Environmental, Social and Governance (ESG) concerns, as well as post-Covid and hybrid ways of working (69%) are the next biggest influences on design.
Currently just under half (46%) of employers say they focus on fairness in benefit offerings across pay grades, but by 2024 nearly nine out of 10 employers will be doing this by avoiding seniority-based benefits.
Among these changes, 88% of respondents offer or plan to offer support for female health with 87% doing so with social wellbeing platforms.
Expanding mental health training is set to continue to be a top priority in the next two years as well.
Howden Employee Benefits & Wellbeing executive director Matthew Gregson said: “Unprecedented changes in the world of benefits and wellbeing are taking place.
“This is not just in response to the pandemic, but because we are seeing the majority of employers now evolving their cultures and employee value proposition in light of DEI and ESG influences.”
Gregson noted that while the transformation of benefits strategies has rightly lagged behind, it was now coming to the fore.
“We are not just seeing employers add more benefits and initiatives, but they are also reviewing their existing offer, especially the big ticket items, such as pensions, health and protection, to ensure benefits are fairer, more inclusive and more sustainable for the future,” he continued.
“We welcome this shift in thinking and look forward to contributing to the next generation of benefits.”
Loneliness guide
As part of Mental Health Awareness Week, Howden has also published a guide to help employers support workers who may be struggling with loneliness.
Along with the guide Loneliness: How to support people in the workplace, Howden has recommended seven steps to help support employees experiencing loneliness.
They are: Communicate and raise awareness; Facilitate workplace socialising; Create opportunities for employees to connect; Support managers; Encourage employees to use their employee benefits; Support employees with care responsibilities; Signpost to charities.
The firm highlighted that the health risks of loneliness are significant. It is estimated to be equivalent to smoking 15 cigarettes per day, increase the risk of high blood pressure, and is worse for people than obesity.
An estimation from the UK government on loneliness put the cost to businesses at £2.5bn every year.
Howden noted that people experiencing loneliness can feel disengaged and disconnected from their work and colleagues, which can cause them to become emotionally detached from the organisation.
Director Mark Fosh added: “Even if they have a bustling workplace, employees could still be experiencing loneliness or supporting someone who is facing it.
“People can find it difficult to admit they are lonely and to access the right support, so its important employers understand the impacts of loneliness.
“Being aware of loneliness and putting support in place to help can make a powerful difference to individuals and the organisation.”