Why employers are having to reassess workplace benefits

If there’s one thing certain about workplace perks, it’s that they are constantly evolving. This typically occurs with the trends in demand from employees. However, many of them get stuck in their old ways, offering perks that are no longer practical or popular.

Recently, LinkedIn News has seen a trending story about how employers are having to reassess their workplace benefits. As an employee wellbeing platform, we’ve seen the employee benefits landscape change dramatically over the past couple of years, so we’re inclined to agree with the statement made by Headspace — the mental health app offering meditation services.

Russell Glass, CEO and founder of Headspace, goes on to say they’ve seen how companies have had to rethink their employee benefits strategy to adapt to the economic conditions. Now, employers are looking for solutions to mental healthcare under one application, instead of a subscription to a dozen providers.

The concept of hundreds of leading health and wellbeing partners under one roof is no stranger to us at Heka. In fact, our wellbeing platform is host to more than 3,000+ wellbeing experiences, products and services spanning some 50+ categories. 

Not convinced by those numbers? Speak to our wellbeing experts, they’re more than happy to help and answer any questions you may have. Anyway, back to business!

In this article, we’re going to explore the reasons why employers are having to reassess their current offering, and what it could mean for the future of employee benefits. It’s a trending matter at the moment, and it rightfully deserves the attention of leaders. 

If we’re completely honest, millions of people in the workplace simply don’t receive an adequate benefits package, and it’s time for change.

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There's economic downturn ahead

We’ve all read the headlines and felt the pinch. Now it’s time to find solutions and act. The BBC recently reported on the Bank of England’s expectations for the “longest recession ever” in Britain. 

This kind of claim cannot be taken lightly and both businesses and individuals should prepare for the worst. From cutting back on spending to making better decisions as a leader, the times ahead won’t be smooth sailing. 

In the workplace, these cutbacks have taken shape not only in layoffs but also reducing things like employee benefits. As the trending story on LinkedIn describes, employers are looking for more cost-effective ways to support their teams. 

A seamless employee benefits package can be an affordable way to support employees without both the headache and expense of using several partners and providers — it’s exactly how employers leverage our platform at Heka.

Ultimately, however, the economic downturn will push employers to do away with expensive, underutilised workplace perks. But, as is often the case, simply downgrading the employee experience doesn’t work. Employees will expect replacement perks.

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Employees just aren’t happy with existing benefits

We’re always learning about the change in employee benefits, and we’ve noticed a huge shift over recent years. Employees just aren’t happy with what they are currently offered. 

According to an article in Forbes, six in ten employees say wellbeing benefits will be a top priority when choosing their next job.

It’s clear that change needs to happen and benefits need to focus on the individual health, wellbeing and happiness of people at work. The Forbes articles also highlight that financial and mental health wellbeing are the highest priorities of staff. 

To put it into simple terms, employers need to do away with ping-pong tables and beanbags and introduce perks around learning and development, work equipment budgets and emotional wellbeing support — benefits that generally support people and help them become the best versions of themselves. 

As a leader, you should listen to your team for employee benefits advice. After all, it's your workforce that utilise your workplace perks and so their thoughts and opinions should be taken into consideration.

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The market for talent is very tight

Finally, this point focuses on the recruitment sector. In the past twelve months, organisations have experienced some of their hardest times trying to hire top talent. 

From the recession to the shift to hybrid working, there are been so many curve balls thrown at recruiters. If anything, it should demonstrate just how fast employee demand changes and the expectations people now have from their employers. 

We can’t talk about the war for talent without mentioning the Great Resignation (also referred to as the ‘Big Quit’ or the “Great Reshuffle’). 

As 2022 unfolded, both the UK and the US saw resignations on an enormous scale. This economic trend threatens to hold back the progress and growth of businesses if they don’t act with caution and finally start putting people first in the workplace.

Our conclusion on the reassessment of workplace benefits

There you have it. While we’ve only scratched the surface of why employers are beginning to reassess their workplace benefits, the reasons are clear, and in most cases valid. 

We recommend that you dive into more of our content around employee benefits, specifically our ultimate guide to employee benefits. Here, you’ll learn about how to leverage an employee benefits package to create healthier, happier teams.

At Heka, we’re big believers in workplace benefits, and we know the true power when executed successfully. We hope this article answers some of your answers about the need to reassess benefits in the workplace. Head across to our blog for more great content spanning everything from leadership to workplace wellbeing.