UK - Firms must go online to stop workers underestimating the value of employee benefit programmes, Mercer Human Resource Consulting claims.
Research from the Chartered Institute of Personnel and Development shows that 75% of employers see reward as key to motivating employees.
And Mercer said its own studies had found that 45% of employees rank benefits as the most important factor in influencing their commitment and motivation at work.
But Mercer believes employees do not value or understand the true range of benefits available to them and claims that workers underestimate the value by around 20%.
The consultant said this meant that benefits were potentially delivering a poor return on investment given that firms spent between 10% and 50% of salary to provide them.
Mercer said the problem could be addressed if employers embraced modern technology and put integrated reward systems, aggregated data and model future reward values on a personalised website.
It said this would enable companies to deliver a single, tailored reward statement to each employee.
These statements would incorporate pay and all benefits, and would boost employees’ understanding of the true value of their total package.
Mercer added that companies would also be able to make cost savings.
A handful of industry heavyweights have begun trialling a so-called 'mid-life MOT', with positive initial results reported by all those involved.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.