A significant disconnect exists between employers' perception of how much their staff value employee benefits and how employees actually feel, according to new research by Group Risk Development (GRiD). The findings, conducted by the group risk industry body, reveal that while 81% of employers actively measure employees’ appreciation of benefits, there is a stark contrast between employer expectations and employee sentiment.Of the employers surveyed, two-thirds (66%) believe that their staff "very much" appreciate the benefits they receive. This is more than triple the level of appreciation that employees themselves report, with only 21% expressing that they feel a high level of gratitude for the benefits offered by their employers.The importance of perception and communicationAccording to Katharine Moxham, spokesperson for GRiD, the disparity in appreciation can be attributed to gaps in communication, awareness, and understanding of the benefits on offer. "We know that communication and appreciation are inextricably linked, as employees tend to value benefits more highly when they have a good understanding of what is available," said Moxham.The research sheds light on a crucial aspect of employee engagement: the perception of employee benefits as a standard part of a remuneration package. In order for employees to truly appreciate them, employers need to do more than just offer these perks; they must ensure that they are actively highlighting where their support goes beyond the basics. Moreover, Moxham emphasises that it’s not enough for employees to merely be aware of the benefits; they must have a comprehensive understanding of what is available, how it helps them, and how to access it."Employers need to ensure that benefits can be accessed in a straightforward and efficient manner, as this can be another stumbling block in terms of staff appreciation," Moxham added.Missed opportunities and rethinking benefitsEmployee benefits are a significant investment for businesses, representing a core component of the compensation package designed to attract and retain talent. However, if employees do not value these benefits as much as employers expect, it represents a missed opportunity. The GRiD findings suggest that businesses may need to rethink whether the benefits they offer are truly resonating with their workforce: "If, after taking these steps, employers still find that staff appreciation is lacking, it may be time to rethink whether the benefits offered are the most appropriate," the research suggests. These steps include ensuring proper communication, making benefits easily accessible, and addressing whether the offerings meet the current needs of employees.One notable insight from the research is the way in which benefits have evolved in response to changing needs. The pandemic accelerated this process, with providers pivoting to offer new forms of support to employees. Moxham noted, "We saw how quickly employee benefits providers pivoted to offer support for Covid during the pandemic and, while this was an extreme situation, providers are constantly evolving their products to reflect employee and employer needs."This evolution highlights that employers must stay proactive, continuously ensuring that their benefit offerings are relevant and addressing current employee concerns, including mental health, rehabilitation, and prevention.Measuring employee appreciation: popular methodsThe GRiD research also delved into the methods used by employers to gauge employee appreciation of their benefits. The most common approaches include informal feedback mechanisms, such as discussions with managers, HR, or wellbeing champions, with 46% of employers relying on this approach. The same percentage of employers use a feedback or suggestion box, either physically or digitally.Other popular methods include formal staff surveys (45%), employee benefits forums or liaison groups (40%), and online activities that track engagement with benefits-related content, such as measuring clickthrough rates on intranet posts (39%).While it’s promising to see that many employers are taking steps to measure staff appreciation, Moxham stresses that measurement alone is not enough. “It’s good to see so much measurement in place, but this must go hand-in-hand with communication,” she said. As benefits — particularly group risk options like Group Life Insurance and Income Protection — are updated regularly to better meet employee needs, keeping staff informed is crucial.The broader impact on employee sentimentUltimately, ensuring that employees appreciate the benefits they receive can have far-reaching effects on their overall attitude toward their employer. “Ensuring employees appreciate the employee benefits they are offered goes hand in hand with sentiment towards their employer as a whole,” Moxham explained. Companies that clearly demonstrate they care for their employees’ well-being are more likely to foster loyalty and retain top talent.As businesses strive to remain competitive in today’s workforce, the importance of offering — and communicating — the right benefits package cannot be understated. The GRiD study serves as a timely reminder that employee appreciation is not something that can be assumed; it must be actively nurtured through clear communication, appropriate offerings, and easy accessibility.For employers, the message is clear: employee benefits are a crucial part of any retention and recruitment strategy, but they are only effective when employees fully understand and value them. As the workplace continues to evolve, businesses must keep pace, regularly reassessing their offerings and ensuring that staff feel both informed and appreciated.What should employers do?The research conducted by GRiD underscores a significant gap between employer perception and employee reality when it comes to appreciating workplace benefits. As employee benefits continue to evolve, companies must ensure they are communicating these perks effectively, making them accessible, and consistently re-evaluating whether the benefits are truly meeting the needs of their workforce.In today's competitive job market, employee appreciation of benefits can play a pivotal role in fostering a positive workplace culture and retaining talented staff. Employers who close this gap will likely see stronger engagement and greater loyalty from their teams.To find out more about how YuLife is supporting business in staff engagement with employee benefits, visit: yulife.com/employee-engagement/ About YuLifeYuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work?Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.*Research conducted by Opinium between 9-16 January 2024 among 500 HR decision-makers and 1,210 employees in the UK.