Study of the Month: Benefits Report 2023
"Skilled labor shortage, New Work, and wages." Three topics in the job market that couldn't be more relevant. In times of change and rising inflation, it is crucial for the job market to understand the interests of the involved parties.
Employees are becoming increasingly selective - because they can. At the same time, employers do not know how to respond to this dynamic far too often.
The Circula Benefits Report 2023/2024
The Benefits Report fills these knowledge gaps, enabling companies to understand current market demands and thus strengthen employee engagement sustainably. The report was created based on two online surveys conducted by YouGov Deutschland GmbH on behalf of Circula.
Surveyed were 251 German HR and finance decision-makers in companies with more than 50 employees between July 28 and August 6, 2023 as well as 1,000 German non-managerial employees between July 31 and August 8, 2023.
Rising Expectations
It is no secret that the job market is subject to constant developments, especially regarding requirements. The study results confirm this:
Of all surveyed HR and finance decision-makers, a whopping 63% stated that increased turnover and a lack of employee retention are currently burdening the company. Because a full 50% of surveyed employees have rising salary expectations, and 45% desire more flexibility. Unsurprisingly, there is a difference in expectations among age groups. Employees between 25 and 34, have particularly high expectations of their employers especially regarding flexibility.
The silver lining: HR and finance decision-makers are aware of this trend, with 53% of them under the impression that employees' demands on companies have increased.
New Work: The Trend in the Working World
New Work is the trend of the current working world. We address questions such as: What is New Work, and where does it originate? Is it true that employees are more productive in their work lives with more flexibility and autonomy? What are the pros and cons of New Work practices? Find the answers here.
Lack of Appreciation - A Conflict of Interests?
Appropriate appreciation is essential for employee satisfaction and productivity. Employers are aware of this and offer additional benefits as part of their Corporate Benefits program. Initially, it's a positive development to see 86% stated that their company offers benefits. However, here lies the problem, as the Benefits Report itself puts it:
"Well-intentioned, but off the mark." Why? Benefits are undoubtedly good but must align with the needs of employees. Otherwise, the desired impact on employee satisfaction won't be achieved.
- The top 3 desired benefits: Mobility allowance, flexible work arrangements, and benefits related to retirement.
- The top 3 offered benefits: Christmas bonus or similar, flexible work arrangements, and opportunities for further education.
With a ratio of 1/3, it is easy to see that there is a conflict of interests. This comes to show that there's an obvious knowledge gap on the employers' side. Because: HR and finance decision-makers are aware of the issue: 87% believe that benefits are part of or becoming an increasingly important aspect. However, employers and employees need to find more common ground where desired and offered benefits align.
Why Digitization is Essential
Respondents are aware that digitization in HR can provide significant relief. Two-thirds (66%) of HR and finance decision-makers advocate the use of a digital tool for this task.
Of the employees responsible for their expenses or benefits, 39% find a digital tool helpful. Currently, 19% already use such a tool, while 20% wish for one.