Only 57% of employers believe their workforce is aware of all their benefits and understands them

Press release 22 October 2020.

35 percent of employees say their company doesn’t communicate benefits or they don’t remember if they do.

In research* revealed today by GRiD, the industry body for group risk, only 57% of employers believe their workforce is aware of all their benefits and understands them.

• 28 percent of employers believe their workforce is aware of all their benefits but doesn’t understand them all.
• 10 percent of employers believe their workforce is only aware of some of their benefits.

Katharine Moxham, spokesperson for GRiD says: ‘A huge amount of resource, time, energy and money is invested in compiling employee benefits packages. This is maximised when a workforce is aware of the benefits and understands them.’

Appreciation of benefits is connected to how well they’re communicated, so the research also looked at the frequency and methods of communication.

• 38 percent of employers communicate details of their benefits when there’s a change to the terms and conditions of a particular benefit
• 29 percent communicate benefits at recruitment stage
• 26 percent communicate benefits at least quarterly
• 22 percent communicate benefits at performance reviews
• 21 percent communicate benefits once a year
• 8 percent don’t communicate their benefits

The most effective communication strategies are those that are regular. Employee benefits don’t always resonate with employees if they don’t seem relevant at a particular point in time. However, life stages and circumstances change regularly, so benefits that weren’t relevant one day, may very well be the next.

Moxham continued: ‘We see people at some of the most vulnerable stages in their life in our industry: at times of ill-health, disability and bereavement. Circumstances that by their nature are often unforeseen. This is exactly why benefits that support such situations need to be communicated regularly, so they are front of mind when they are needed.’

Communication methods

By far the most popular method for communicating benefits is in a staff welcome pack (38%). Posting details to home addresses was the least popular, according to employers.

Interestingly however, employees** have a different recollection of the methods their employers use. And over a third (35%) don’t believe their employer communicates benefits or can’t remember if they do.

How benefits are communicated	Employers say:	Employees say:
Staff welcome pack	38%	15%
Staff handbook	29%    Â	15%
Before day one of employment/in an offer letter	25%	10%
Email  Â	25%	23%
Before recruitment, e.g. in job advertisements	22%    Â	10%
Staff noticeboard	22%    Â	11%
Company intranet	19%    Â	19%
Total Reward Statements	12%	7%
Employee benefit fairs	11%	6%
Benefit platform(s)/Apps	11%	9%
Post to home address  Â	11%	6%

There’s a disconnect between how employers communicate, and what employees remember. This clearly demonstrates the need for regular communication and using a mix of methods for communications to be effective. Employees won’t always remember what’s been communicated if it wasn’t important at the time.

Likewise, different methods will resonate more with some employees than others. Some will diligently read their welcome pack or handbook, and others will be more likely to engage with the company intranet. There are also increasing options to promote digitally, and it’s important that this method is also embraced to reach all sections of a workforce.

Moxham concluded: ‘These findings are particularly pertinent given new legislation, which came into force 6 April this year requiring employers to inform employees about their employment and benefits on day one or on request***. But, in addition to complying with this, to increase engagement and for benefits to be utilised, they need to be understood, to which communication is central. Whether we’re talking about pensions, healthcare, employer-sponsored life assurance, income protection or critical illness, the approach needs to be the same. Employers need to tell their workforce what they’re offered, communicate via as many means as possible, and do so regularly.

• Ends –

* Research undertaken by Opinium on behalf of GRiD amongst 500 HR Decision makers between 27-31 January 2020

** Research undertaken by Opinium on behalf of GRiD amongst 1,165 employees between 24 and 28 January 2020.

*** The Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 (SI 2018/1378)

Qs to employers:

Do you believe your employees are aware of the employee benefits you offer, and understand them?  This is not just related to the ones mentioned in this survey, but all benefits, including pension, healthcare, etc.

Base Size: All Participants	500
Yes, they’re aware of all of them and understand them all	57 %
	285
Yes, they’re aware of all of them but don’t understand them all	28 %
	140
Yes, but they are only aware of some of them	10 %
	49
No they are not aware of any of them	5 %
	26

How often do you communicate your employee benefits to staff?

When there’s a change to the benefit terms and conditions, e.g. if pension contributions are set to change, or terms of cover change, etc.	38 %
	188
At recruitment stage	29 %
	147
We make a point of issuing regular (at least quarterly) communications on our benefits package	26 %
	129
At performance reviews	22 %
	112
Once a year	21 %
	107
Other	1 %
	5
We don’t communicate our employee benefits	8 %
	42

How does your company communicate the employee benefits offered? This can be anything from company pension, access to private healthcare, employee assistance programmes, cash plans to group risk protection benefits. Please select all that apply.

In a staff welcome pack	38 %
	188
In a staff handbook	29 %
	147
Before day one of employment/in an offer letter	25 %
	126
Via email	25 %
	125
Before recruitment, e.g. in job advertisements	22 %
	111
On our staff noticeboard	22 %
	108
Via our company intranet	19 %
	97
Via Total Reward Statements	12 %
	59
Via employee benefit fairs/where suppliers come in to present to employees	11 %
	54
Via benefit platform(s) and/or Apps	11 %
	54
Via post to my home address	11 %
	53
We don’t communicate any employee benefits	9 %
	43

Q to employees:

How does your company communicate the employee benefits they offer you?  This can be anything from company pension, access to private healthcare, employee assistance programmes, cash plans to group risk protection benefits.   Please select all that apply.

Base Size: All Workers                                             1,165

Via employee benefit fairs/where suppliers come in to present to staff	6 %
	71
Via post to my home address	6 %
	73
Via Total Reward Statements	7 %
	83
Via benefit platform(s) and/or Apps	9 %
	107
Before recruitment, e.g. in job advertisements	10 %
	112
Before day one of employment/in an offer letter	10 %
	117
On our staff noticeboard	11 %
	132
In a staff welcome pack	15 %
	173
In a staff handbook	15 %
	179
Via our company intranet	19 %
	219
Via email	23 %
	263
N/A they don’t communicate any employee benefits	16 %
	191
Don’t know / can’t remember	19 %
	221

For further information please contact:

Sharon Mason 
SMUK Marketing and PR
smason@smuk.org.uk 
Mob: 07747 611773
Land: 01252 843350

Katharine Moxham
Spokesperson for GRiD
Katharine.moxham@grouprisk.org.uk
Mob: 07887 512508

Notes for editors

About GRiD

Group Risk Development (GRiD) is the industry body for the group risk sector, promoting the value to UK businesses of providing financial protection for their staff, enhancing their wellbeing and improving employee engagement. Our membership includes insurers, reinsurers, intermediaries and those operating in (or with other interests in) the UK group risk market. Together this forms a collective wealth of experience built over many years. Under the chairmanship of Steve Bridger (managing director, Aviva Health UK) GRiD aims to promote group risk through a collective voice to Government, policymakers, stakeholders and employers.

GRiD works with government departments and regulators involved in legislation and regulation affecting group risk benefits, and with other organisations involved in the benefits and financial protection arenas. GRiD also seeks to enhance the industry’s standing by encouraging best practice and by participating in industry-wide initiatives such as the professional qualification in group risk managed jointly with the Chartered Insurance Institute.

GRiD’s media activity aims to generate a wider awareness and understanding of group risk products and their benefits for employers and employees.

GRiD’s dedicated spokesperson, Katharine Moxham, provides expert media comment on a full range of group risk issues.

www.grouprisk.org.uk

Follow Katharine Moxham on Twitter @KMoxham