A huge gap between the benefits that employees want and the benefits offered by the employers in India
Employer support—in the form of employee benefits, flexibility and regular communication—is vital in helping organizations address job insecurity and resultant loss in engagement & productivity. As most startups adjust to the new economic reality by right-sizing the organization, it has become even more important to revitalize the organization by re-engaging the employees who remain with these organizations. But a new report finds that there’s a sizable gap in what support employees want from their employer and what organizations are actually offering—data that indicates employers may want to reevaluate what they offer and prioritize. A survey from MyFINFI World, out this week, finds significant gaps between the percentage of employers that offer particular benefits and the percentage of workers who say those benefits are important.
“Economy has seen rapid swings in the last 36 months & employers have been navigating complex issues in a rapidly changing environment, especially in managing the needs of their workforce,” says Kriti Pandey, HR professional & the current head of customer success for FINFI. “However, they can be doing even more to support their employees.” The organization conducted a survey of more than 100 employers and then compared the results to those of its most recent survey of employees, finding large discrepancies in all kinds of benefits. For instance, the need for health insurance was rated as important by 98% of workers, but only 56% of employers offer it. And 80% of workers say PF contribution by employers is important, but 45% of start ups implement the bare minimum statutory requirement for PF. Other benefit discrepancies, according to the surveys, are:
Life insurance: important to 80% of employees, but offered by 25% of employers
Employee advance programs: important to 71% of employees, but offered by 30% of employers
Workplace wellness program: important to 69% of employees, but offered by 29% of employers
Financial wellness program: important to 73% of employees, but offered by 28% of employers
Why are there such large gaps? Kriti says that employers’ lack of awareness of what is available in the marketplace, an underestimation of employee interest, leg work required for internal alignment and concerns about cost all may be in part to blame. She also notes, “The gap is far more pronounced among startup companies compared with older companies.” The data is a reminder that HR cannot rest on their laurels and should reevaluate offerings, consult with external advisors on options for affordable offerings and get employee opinions on what they most value and want. That will only result in happier, healthier and more engaged employees. “As employers evaluate their benefits offering, they have an opportunity to further support the physical and mental health and the financial wellbeing of their employees,” Kriti says. “In terms of gauging employee interest for potential new benefits, one of the best ways to find out is to conduct a survey and simply ask them.”
In the wake of the pandemic-fueled stressors over the last two years, a number of organizations have stepped up two-way communication on benefits, regularly surveying employees about their preferences and their needs for support. That strategy was important in an employee-driven job market where workers have more options to leave for other opportunities—and better benefits but is even more important in today’s market where employees are really stressed about their careers and financial security. “It is important for employers to gain an understanding of the types of benefits currently available in the marketplace so they can determine which could best address the needs of their employees,” she says. “Recognizing this need FINFI has designed a survey that can be rolled out free of cost by the employers. We also share the recommendations based on the data and help organizations implement them at no cost to the organization”
About FINFI
FINFI is a financial wellness and inclusion platform that allows employers to provide their employees early access to earned wages. The service aims to empower users on how to migrate away from indebtedness. The platform promotes responsible financial behaviour and encourages saving. Our vision is to initially ease the burden inflicted by expensive services like credit card & BNPL through affordable real time access to cash and to then educate and assist reaching financial goals.