According to Glassdoor, 60% of people regard benefits and perks as a major factor in deciding whether or not to accept a job, and 80% would choose additional benefits over a pay raise. Benefits are now a crucial part of any Employee Value Proposition (EVP), helping to both attract and retain employees. If they are conceived and put together in the right way, they can also play a massive role in job satisfaction, productivity and loyalty.

On the flip side, if a benefits offering is ill conceived it can do the opposite. In a recent global survey of more than 17,000 employees, Mercer reported that only 59% thought that their benefits were meeting their needs. This can typically happen for a few reasons:

• Lack of engagement - HR and business leaders fail to take the temperature of the company and stop engaging with workers to find out what they value the most.
• Lack of agility - a benefit offering struggles to keep pace through neglect or complacency.
• Overstretch - in looking to innovate and strive for a new and varied offering, a company ends up offering less of a tangible benefit than they had before.

The common denominator with all three is a lack of engagement with employees and a lack of insight into what they will and will not value.

With several new benefits starting to emerge, let’s look at how they stand up to scrutiny.

1. Cryptocurrency pay - companies can offer bonuses, incentives or even base salary in the form of cryptocurrencies such as Bitcoin or Ethereum. This provides employees with an alternative form of compensation.
   Our verdict: an attractive prospect and can be a clear incentive if the currency appreciates. The downside is that cryptocurrency’s volatility could lead to significant fluctuation in the value of an employee's pay. Employers would need to educate themselves around the regulatory landscape and provide education and support.
    
2. DNA Testing and Genetic Counselling - subsidized DNA testing kits and genetic counselling services can help employees understand their genetic predispositions. In turn, this can help them make informed decisions around health and mental wellbeing.
   Our verdict: While this can offer significant health benefits and enhance employee wellness programmes, it might present ethical and privacy challenges. Testing kits can be expensive, and employers must ensure that genetic information is kept confidential and secure, with no risk of genetic discrimination.
3. Eco-Friendly Commuting Incentives - promoting sustainable transportation options like subsidies or discounts for EV purchasing or leasing and cycle to work schemes. Companies can also get creative around incentives for carpooling or using public transport with green rewards for biking or walking to work.
   Our verdict: This can be an easy win and integrates well with ESG policies, but companies need to consider what they can pitch and deliver, depending on their size.
    
4. Wellness beyond physical health – looking more holistically at wellness, companies can offer employees a stipend or subsidy to enrol in hobbies or interest classes outside of work. This encourages personal development and creativity.
   Our verdict: Another easy win that can also be tied into recognition. As companies are providing the subsidy but not the provider this can be more flexible and tailored to the individual. However, it does require employees to take initiative which can sometimes impact on engagement.
    
5. Remote work allowance - companies might offer allowances to support employees in creating a productive remote work environment: ergonomic furniture, high-speed internet, noise-cancelling headphones, productivity tools or online learning.
   Our verdict: Depending on a company’s approach to hybrid or remote working, this can give real value. Remember, if not everyone at the company is able or allowed to work from home it requires genuine transparency and the ability to compensate with something else, otherwise it calls fairness and equity into question.

 

6. Plant Parenthood Programme – a little more ‘out there’ but we have seen companies enable employees to "adopt" office plants to care for and nurture, promoting a greener workplace and sense of responsibility.
   Our verdict: Not everyone will class this as a benefit, but it plays well in companies with a strong focus on ESG and is a relatively easy, low-cost and fun measure.

7. Virtual reality wellness breaks – taking nap pods to another level, companies can provide virtual reality (VR) headsets and immersive experiences for relaxation and stress relief. These can include meditation, virtual walks, or exercises.
   Our verdict: VR headsets are portable so by their nature are inclusive - a ‘VR break’ could be enjoyed by anyone, from MD to fork-lift driver. According to ONS statistics, the number of people not working due to long-term sickness peaked at over 2.8 million in 2023 and mental ill health is cited as one of the biggest contributors - in total it costs UK employers up to £56bn a year - so why not do all we can to alleviate stress? As VR and the metaverse becomes more commonplace in onboarding, training and familiarisation, there could be a number of ways to achieve ROI.

Any benefit that will be used and valued, and contribute to employee wellbeing, is worth looking at. While some of these may seem gimmickier than others, if workers engage with them in a tangible way, why not go for it?

If you’d like to conduct an audit to understand the competitiveness of your benefits offering, please get in touch with mark.macoun@innecto.com or call our consultancy team on 020 3457 0894.

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