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