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Chase de Vere Research - Employee Benefits & Communications

10 May 2017

Research shows that 43% of employers don't provide regular updates on their employee benefits

Research we’ve conducted, in conjunction with Lightbulb, an independent research company, shows that many employers aren’t reviewing or effectively communicating their employee benefits packages.

The Research consisted of making around 10,000 phone calls to employers which are representative of the UK company population and then conducting in-depth interviews with senior HR decision makers in 300 randomly selected businesses to capture their attitude and current perspective on benefit provision.

When asked:

Why do you provide employee benefits?

Reason why Percentage
We realise how important providing a competitive benefits package is in recruiting and retaining good quality staff 23%
We feel that providing a good range of employee benefits supports our company goals and strategy 17%
We aim to recognise employees as individuals 17%
We know that our staff value the benefits reward package we have in place 15%
It makes employees feel secure about their jobs at this company 14%
Our benefits package is competitive and together with the tax benefits it makes it cost effective for us to offer 14%


There is not one over-riding reason why employers provide employee benefits. Many of the reasons are supportive of recruiting and retaining staff while the others are more focused on business goals.

What reason for offering your current benefits is the most important?

Reason why Percentage
Popularity with staff 38%


Historical benefits package 24%
Range of choices 7%
Recommended by an adviser 5%


It is understandable that popularity with staff is the main reason why employers offer their current employee benefits packages. These packages are often used as a mechanism to help recruit and retain good quality employees.

It is concerning that nearly one in four employers provide their current benefits range simply because it is their historical offering and these benefits aren’t analysed or reviewed. This is more likely to mean that employers aren’t getting good value for the money they’re spending.

Does your organisation have regular updates on employee benefits?

57% of employers said that their organisation did give regular updates on employee benefits. 43% of employers said they did not. This is likely to mean that many employees aren’t engaged with their benefits package.

How do you communicate with staff about pensions and employee benefits?

How they communicate Percentage
Individual personalised letters 75%
Induction pack 63%
Noticeboards 62%
Meetings 56%
Staff handbook 52%
Seminars 32%
Automated trigger letters 29%
Payroll 28%


Please note that employers often use multiple communication methods as reflected in the results.

It is positive that employers are using a wide range of methods to communicate to their staff about pensions and employee benefits. However, the most common methods used don’t allow the employee to confirm their understanding, provide feedback or even acknowledge that they’ve seen the information.

Sean McSweeney, Corporate Advice Manager, Chase de Vere, says:

"Employee benefits packages have become a key way for employers to recruit and retain good quality employees. It is therefore important that they offer the right benefits, which are reviewed regularly and communicated effectively".

"However, what we’ve found is that nearly a quarter of employers have their benefits package in place for historical reasons, more than four in ten employers don’t communicate regularly on their employee benefits and the most common communication methods used are not interactive and so there are no guarantees that the core messages are being received and understood".

"The result is likely to be that many employers are spending large sums of money on their benefits packages and are getting very little value in return.”

What next?

Call 0345 300 6256

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