Companies are increasing investment in employee benefits packages as they attempt to gain a competitive edge in the race for talent, new data reveals.
Nearly half told researchers say they have boosted investment in their benefits package over the past 12 months in response to the changes in the economic climate, with four in ten now grappling with recruiting difficulties.
Increased competition for talent has meant more than a third now worry they can’t keep up with competitors who are raising salaries and won’t be able to attract or retain the right talent.
But the research also highlights the shifting priorities amongst prospective employees with many now putting greater weight on workplace flexibility and personalised benefits.
Amidst the aftermath of the pandemic, staff are reconsidering what they really need from their employers. Bosses struggling to recruit said that while pay remains important, demand for flexible working is now the biggest factor hindering recruitment efforts.
Matt Russell, right, CEO of the benefits provider, Zest which commissioned the research, said: “There’s no doubt that it’s an employees’ market out there right now and more than ever employers need to work to understand candidates’ unique needs in the race to recruit, motivate and retain great talent.
“As candidates demand more flexibility in their working lives, employers must rise to that challenge by offering working arrangements and benefits that are also sufficiently flexible and personalised.
“When it comes to benefits, employers should prioritise packages that can be individually tailored. Even the most cost-effective rewards can be incredibly successful if it effectively meets the needs of employees on a personal level.”
Zest’s research also highlights how important a role benefits play in a company’s ability to meet demands. Whereas only 27 per cent of employers attribute missed talent acquisition opportunities to their inability to raise salaries, 43 per cent pinpoint failure to offer accessible and comprehensive benefits packages as the critical contributing factor.
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