Financial services firms face a significant challenge retaining talent amid a surge in living costs, with new research revealing that employees are increasingly dissatisfied with their workplace benefits.
A report by employee benefits technology provider Zest, found that 97% of financial services employers say candidates now routinely inquire about company perks during recruitment. With energy, water, council tax, broadband, mobile and TV prices all rising sharply this “Awful April”, around two-thirds (64%) of financial services employees want increased financial support within their benefits packages.
But despite the demand, many employers appear out of sync with the real needs of their workforce. The research reveals that three in ten (31%) employees feel their employers do not listen to their concerns or respond effectively through the benefits provided. A majority (62%) admit they rarely or never use most of their existing benefits, while over a third (36%) believe their current perks are irrelevant to their personal or financial wellbeing.
Disconnect between employers and employees
The report, entitled Are financial services firms losing talent through poor reward packages?, highlights a significant gap between what employees desire and what firms currently prioritise.
Employees rank private medical insurance (47%), increased pension contributions (45%), and salary sacrifice for workplace pensions (30%) among their most important benefits. In contrast, employers are predominantly offering paid mental health leave (34%) and sustainability-focused perks (29%), with just 25% providing private medical insurance.
Nearly all (99%) financial services employers acknowledge that more personalised benefits would improve employee engagement. Yet, despite this widespread recognition, practical implementation lags behind, risking further dissatisfaction among workers.
Competitive Risks Driving Talent Loss
The situation becomes even more critical considering four in ten (37%) financial services firms say they are struggling to compete with salary hikes offered by rival companies. Over half (54%) of employees in the sector confirm they would consider changing jobs if another firm offered superior benefits.
“April has proved to be a financially challenging month for both businesses and workers alike,” Zest CEO Matt Russell said. “Providing the right support through a great benefits package can ease this load, offering improved value for money for businesses and helping employees to manage the increase in household bills and ongoing high cost of living.”
He said that “if both parties are to reap these rewards, financial services firms must work to create more personalised, targeted benefits packages that their employees will truly value. With over half of workers in the sector claiming they’d jump ship for better perks, getting this right has never been more critical.”
Strategies to Enhance Employee Wellbeing
Experts suggest several practical approaches for financial services employers to close the gap and improve wellbeing:
- Personalised Benefits: Firms can better tailor benefits through regular employee surveys and consultations, allowing individuals to choose perks relevant to their circumstances.
- Enhanced Financial Support: Introducing resources such as financial education programmes, debt management tools, and savings plans can significantly alleviate financial stress.
- Flexible Working Options: Promoting hybrid and flexible working arrangements helps employees balance their personal and financial commitments more effectively.
- Earned Wage Access (EWA): Providing earlier access to earned wages can help employees avoid costly loans or financial distress between paydays.