Recent research by AIG UK Benefits found key contrasts between the perceptions of employers and employees over the take up and effectiveness of Voluntary Employee Benefits (VEB).

The most striking gaps in perception were;

• While 86% of employers feel they communicate their VEBs effectively, only 36% of employees feel their employers are doing enough to promote the benefits available.
• 87% of employers claimed to consult employees and use their feedback to decide benefits selection though only 23% of employees claimed to have been consulted.

Other key findings of the research were that;

• 80% of employees found the concept of VEBs appealing though 36% admitted to not actually using them and 38% stated they didn’t intend to use them in the near future.
• 75% of employees saw the employer’s benefits package as a deciding factor when selecting employment and furthermore, 76% felt that a benefits package could directly influence their decision to stay with their employer.

Worryingly, the research also found that;

• 32% of respondents didn’t feel their current VEBs worked in motivating them or their colleagues, 33% didn’t think they improved loyalty and 28% feeling they didn’t attract staff and aid in their retention.

The overriding theme of the findings were that communication is key, and that it is an absolute must in reconciling the differences of perception between employers and employees when it comes to VEBs.

Employers seem to be overestimating the interest and take up of VEBs, but this is caused in large by employees underestimating the VEBs they receive and not getting the full extent of personal benefit.

Communication is crucial in ensuring the effectiveness and take up of VEBs. Employers need to put in place a full communications strategy that promotes the VEB scheme and allows the employees to get the most out of their VEB package and the employer to get the maximum return on investment.

In Peoplevalue’s case, we will manage a scheme’s communications on a client’s behalf as part of a comprehensive communications package, driving awareness and informing employees fully of the benefits they receive.

In this communications package, clarity is also a driving factor. Peoplevalue go to great lengths to maintain a clear communication of the advantages of their VEB solution. The flexible communications strategy allows for contemporary issues to be included alongside the generic, increasing the schemes effectiveness and take up overall.

For more information on how Peoplevalue’s communications can be tailored to include contemporary issues, please download our “credit crunch” collateral here