In a recent survey conducted by Isio in collaboration with YouGov, a comprehensive analysis of 7,674 UK private sector employees has shed light on the pivotal role of employee benefits packages in reducing turnover. The UK - grappling with one of the highest voluntary employee turnover rates in Europe - has seen 27% of employees opting to leave their jobs between 2020 and 2021.
The survey uncovered a compelling correlation between financial confidence and expected employee turnover. Those who exhibited financial confidence in decision-making were 69% more likely to stay with their current employer, compared to 64% in the wider population. Conversely, individuals with less financial confidence were 32% more likely to seek alternative employment, compared to 26% in the broader workforce.
Beyond financial education and support, the findings prompt a closer examination of what additional measures can be implemented to address turnover within a workforce.
To gauge the impact of benefits packages on employee satisfaction, the survey asked over 7,500 employees - excluding pay and bonus considerations, whether their current benefits package met their requirements. Alarmingly, over a quarter expressed significant discontent, while an additional 8% admitted to being unaware of their benefits. This dissatisfaction varied considerably across industry sectors.
Employees dissatisfied with their benefits were found to be more inclined to change jobs, with 16% planning to do so, compared to 10% in the wider population. Conversely, those content with their benefits package were less likely to consider moving, with 58% having no plans to change jobs, compared to 40% in the broader workforce.
The survey highlighted significant differences in satisfaction levels across industries. Financial services led the way, with 33% of employees feeling that their benefits met all their needs. However, in hospitality and leisure, this figure dropped to a mere 18%, with an additional 15% uncertain about their benefits.
Several factors contribute to this variance, including the perceived generosity of benefits packages in the financial services sector compared to retail and hospitality. Additionally, the retail and hospitality industries, characterised by a more diverse workforce, often grapple with less inclusive benefit packages.
In light of these findings, there is untapped potential for employers to enhance employee satisfaction with benefits packages and boost financial confidence across the workforce. By ensuring benefits packages meet the diverse needs of employees and fostering an inclusive approach, employers can significantly reduce the risk of turnover.
