Workforce Undervalues Job Benefits

Workforce Undervalues Job Benefits

Research from Aon Consulting shows the UK workforce greatly underestimates the cost of employment benefits.  The firm surveyed 1300 employees and 98 per cent said they had no idea how much benefits – such as pensions and private medical care cost employers.  Almost 70 per cent of workers estimated that the amount their company spent on benefits was around 10 per cent of their individual salary.  Aon said companies spent between 20 per cent to 40 per cent of employees’ salaries in additional benefits.

Our view

We have said this for many years.  People do not understand the true costs of their perks and we suggest that many take them for granted.  Particularly local authority workers who receive huge benefits compared to their private company counterparts.

Likewise, employers need to explain and sell the fact when they offer an exceptionally good benefits package as part of the overall remuneration package.

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