aon hewitt - executive summary rapport getting the mix right | european employee benefits benchmark...
DESCRIPTION
Welcome to Aon Hewitt’s European Employee Benefits Benchmark Survey (EEEB). This is the second report based on our recent online survey of workers in ten leading economies. More than 7500 people took part, providing fresh employees perspectives on companysponsored benefits in Belgium, Denmark, France, Germany, Ireland, The Netherlands, Norway, Spain, Switzerland, and the UK. The report focuses on how benefits— the services or products that companies provide to their workers apart from salaries—might influence employees’ relationships with their employers. It is designed to help human resources directors and other senior managers improve the design and scope of benefit packages to make them more attractive to employees in a rapidly changing financial and economic landscape. The timing of the report—as Europe begins to emerge out of recession—underlines the importance of well-tailored benefits packages. In 8 of the 10 countries surveyed, over 30% of respondents intend to look for new jobs over the next 6-12 months (See Chart 1). In the UK and Ireland, the proportion was close to 50%.TRANSCRIPT
Employee Benefits: Getting the Mix Right4
• As Europe emerges from a recession, many employees are considering their next job move. Non-cash benefits, including pensions and healthcare, will play a key role in
helping them decide.
• Thesurveyfindingsshowthatanoptimalmixofcashandbenefits,canvaryamongnational groups. The cross-border variation suggests that, when it comes to benefits planning, international companies would benefit from offering a degree of flexibility in the menu of benefits that they offer to their workforces.
• Whilethepopularityofdifferentbenefitsvariedamongemployeesinthe10countries surveyed, pension provision was the number one choice when asked what benefits respondents might be willing to exchange for a proportion of salary.
• Nearlyone-fifthofemployeesinthesurveysaythattheyhaveincreasedtheirprivate contributions to pension plans. This was especially the case in the UK and Germany.
• Aquarterofemployeesreportedthattheydidn’thaveapensionplan.
• Greaterfinancialprotectionwasthesecondfavouritebenefitamongstemployees, with more than one-third saying they would trade salary for an employer-sponsored health insurance provision in the event of ilness/injury.
• Ahighproportionofrespondentsdidn’tknowiftheiremployersprovidedhealth benefits. The survey found similar levels of uncertainty with life assurance benefits.
• Withregardtootherflexiblebenefits,themostpopularareemployer-sponsored education and childcare facilities.
• Theleastfavouredflexiblebenefitsaremobilephonesandsports/entertainmentdays,although the popularity of such benefits varied widely among different country groups.
• Theprevalenceofsickleaveappearedtovarywidelyamongcountries.Thiswasespeciallytrue in countries that allow employees to take off “social days” to deal with personal and family issues.
• Ascompaniesdevelopstrategiestoretaintheirstafforattractnewemployees,benefitsbecome an intrinsic part of the mix. However, across the full range of benefits, the survey suggests that employers are not doing enough to communicate their benefit provisions to employees. A high proportion of respondents in every country are unaware of
employer benefit provisions and the value of benefits received.
Executive summary