Rewards & Well Being Research

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1 Rewards & Well Being Research Research among HR Reward and Benefits professionals to measure attitudes towards rewards & benefits Prepared by: Heather Macleod, Reed Business Insight On behalf of: Peter Blencowe, Head of Client Acquisition, Nuffield Health Wellbeing April 2009 Reference Number: 4991

2 Contents Executive Summary page 3-4 Main Findings Benefits offered page 5-11 Fitness, health and well-being benefits page Summary of Findings page Appendix 1 (Methodology & Respondent Profile) page Appendix 2 (About Reed Business Insight) page

3 Executive Summary

4 Executive Summary A pension is the most widely offered benefit Most respondents believe that employers have a duty of care to help employees cope with stress A quarter of respondents do not intend to alter their benefits package in light of the recession Half already offer free/subsidised/discounted gym membership as a benefit 4 in 10 of those offering gym memberships who do not have a corporate gym/ fitness deal are interested in setting one up 4

5 Benefits offered

6 Benefits currently offered Pensions 95% Childcare vouchers 78% Eye care 69% Life assurance 62% Company cars Employee assistance programme Cycle schemes Gym membership Financial education Incentive vouchers Car leasing SAYE schemes 19% 18% 17% 14% 47% 42% 38% 35% Public Private Childcare Vouchers 91% 75% Life assurance 38% 74% Company cars 17% 64% Cycle schemes 53% 31% Incentive vouchers 10% 22% Car leasing 24% 12% Childcare 14% 4% Childcare 8% Base: All answering (431) 6

7 Extent of pressure to reduce benefit budgets in 2009 Great extent 19% Not at all 35% Some extent 47% Base: All answering (368) 7

8 Expected wage changes within organisation in 2009 Cut by up to 1% (-0.5) 2% Cut by 1.1-2% (-1.1) Cut by 2.1-3% (-2.5) 2% 2% }11% Average change Cut by 3%+ (-3.5) 5% Public No change (0) 49% Private Rise by up to 1% (0.5) Rise by 1.1-2% (1.1) Rise by 2.1-3% (2.5) 9% 11% 15% }40% Manufacturing Retail/Wholesale Banking/ Insurance/ Business services Rise by 3%+ (3.5) 5% Net increase: 29% Base: All answering (367) 8

9 Support for idea of extending care vouchers beyond child care Have no opinion 28% Not in favour of it 8% In favour of it 63% Base: All answering (367) 9

10 Personally preferred benefit, if money were no object (Spontaneous mentions 3%+) Private Healthcare/ Medical Insurance 25% Gym Membership 14% Health screenings/ health assessments 8% Increased annual leave 8% Company car 6% Dental insurance 4% Improved pension 3% Final salary pension 3% Base: All answering (232) 10

11 Personally preferred benefit, if money were no object Private Health Care Family Health Cover & Critical Illness Free chiropody Comprehensive private health cover Reflexology/massage sessions for all staff Private Health Care for Family Free dental cover BUPA Gym Membership Free gym membership with a personal training Free Membership to Nuffield Cottingley In-house gym facilities standard across all sites Unlimited Swimming Top class gym membership Health Screenings/Assessments Full health assessment and cover Well Woman Health Assessment & PHI Regular Health Assessments Fitness assessment for everyone Annual medical assessments Increased Annual Leave Additional Annual Leave Holiday benefit above statutory Greater degree of flexible working arrangements more holidays Extra holiday days Increased holiday entitlement 11

12 Fitness, health and well-being benefits

13 Extent of concern that employee stress represents for companies Of no concern 2% Of great concern 37% Public 45% Private 36% Of some concern 60% Base: All answering (367) 13

14 Opinion of impact of fitness, health and well-being benefits Employers have a duty of care to help employees cope with stress related issues (357) 67% 33% 1% Fitness, health and well-being benefits show employees and others that employers care about their staff (354) 35% 58% 5% Recruitment and retention of staff is aided by the provision of fitness, health and wellbeing initiatives (356) 11% 54% 27% 8% Fitness, health and well-being initiatives are not appreciated by our staff (350) 4% 35% 46% 15% Fitness benefits do nothing to help employee stress (355) 20% 57% 21% I don't believe that fitness, health and wellbeing benefits can help reduce stress in the workplace (344) 13% 50% 34% Strongly agree Slightly agree Slightly disagree Strongly disagree 14

15 Fitness, health and well-being benefits offered (prompted) Free/ subsidised/ discounted gym membership Health assessments 44% 50% None = 23% Medical benefits Access to physiotherapy 28% 31% Public Private Gym membership 58% 48% Health assessments 52% 41% Medical benefits 37% 29% Access to physiotherapy 37% 23% On-site doctor 21% 13% On-site doctor in your premises 15% Base: All answering (356) 15

16 Whether have corporate gym/fitness deal No 31% Public Private Yes 66% 73% No 34% 27% Yes 69% Base: Those who currently offer gym memberships (176) 16

17 Interest in setting up corporate gym/fitness deal Very interested 7% Fairly interested 32% Not at all interested 62% Base: Those who don t have a corporate gym deal but offer gym membership (76) 17

18 Intention to continue to offer fitness, health and wellbeing benefits to employees Very likely 43% Fairly likely 49% Not very likely 6% Not at all likely 2% Base: Those who offer benefits (254) 18

19 Interest in receiving research-based report on employer s experiences of offering health benefits Very interested 18% Quite interested 45% Not very interested 20% Not at all interested 17% Base: Those answering (340) 19

20 Summary of findings

21 Executive Summary A pension is the most widely offered benefit Most respondents believe that employers have a duty of care to help employees cope with stress A quarter of respondents do not intend to alter their benefits package in light of the recession Half already offer free/subsidised/discounted gym membership as a benefit 4 in 10 of those offering gym memberships who do not have a corporate gym/ fitness deal are interested in setting one up 21

22 Key findings Despite the majority of the sample being under pressure to reduce benefit budgets, a quarter do not intend to alter the benefit package offered in light of the recession. When asked to name their money no object benefit of choice the top answer was private healthcare/ medical insurance. On average, respondents in this sample expect a 0.4% increase in wages in The majority of respondents are concerned about stress and pressure management in the present economic environment. Most strongly believe that employers have a duty of care to help employees cope with stress related issues, while a third strongly agree that fitness, health and wellbeing benefits show that employers care about their staff. Half already offer free/subsidised discounted gym membership to their employees, and of these most already have a corporate gym/fitness deal. 4 in 10 of those who don t currently have a corporate gym/ fitness deal were interested in setting one up. 22

23 Appendix 1: Methodology & Respondent Profile

24 How was the research conducted? In order to provide a robust sample for the study, research took the form of a quantitative online survey conducted amongst over 340 HR professionals across a range of sectors. Results are shown on those answering each question. Dear colleague A Personnel Today branded was sent to a sample drawn from the Personnel Today database (consisting of over 50,000 contacts) inviting potential respondents to take part in the online questionnaire. I would be grateful if you would consider completing a short, confidential questionnaire to help Personnel Today and Nuffield Health better understand attitudes towards employee rewards & benefits. The survey should only take about 10 minutes to complete. As a thank you for taking part, all those completing the survey will be entered into a prize draw to win 1,000. The information you give will be used only in aggregate and your views will be completely confidential. This survey is being conducted by an independent research agency in accordance with the Market Research Society code of conduct. Thank you very much for your time and co-operation. Yours sincerely, The Personnel Today Research Team Respondents completing the survey were invited to join a quarterly prize draw for 1,000 GBP. Fieldwork, data processing and analysis took place in March and April

25 Job status (mentions 2%+) HR Board/Director 12% Senior Management HR/Manager 45% HR Department Head 4% Middle Management HR Officer 15% HR Advisor 12% HR Assistant 2% Base: All answering (340) 25

26 Main business, product or service of organisation (mentions 2%+) Government, public services, education, training, health, charity 33% Manufacturing, engineering, processing 16% Banking, finance, insurance, business services, property, renting 13% Retail, wholesale, distribution, repairs 9% Professional services, consultancy 8% Catering, hotels, transport, travel 8% Construction, mining, agriculture, forestry, fishing 5% Electronics, IT, communication 4% Media 2% Base: All answering (340) 26

27 Public or private sector Public sector 31% Private sector 69% Base: All answering (340) 27

28 Number of employees in company % 4% } 27% % % 16% } 52% 1,000-4,999 22% 5,000-9,999 10,000-49,999 50,000-99,999 2% 7% 10% } 22% Average = 9,344 employees 100,000+ 3% Base: All answering (341) 28

29 Region based in (mentions 3%+) South East 21% Greater London 20% Midlands 18% North West 7% East Anglia 7% South West 6% Yorkshire & Humberside 6% Scotland 4% North East 3% Wales 3% Base: All answering (338) 29

30 About Reed Business Insight

31 What services do Reed Business Insight offer? We provide access to the HR market through independent research covering a variety of different types of information requirements: Market structure - How is the market structured? What will be the impact of future trends? Buyer behaviour - What factors drive purchasing decisions? What will people buy next and why? Advertising effectiveness - Is my marketing communications understood? What impact has it had? Customer satisfaction Are customers satisfied with the service they receive? Product and Company brand perception How does our brand perception compare with competitors? Product development What is the interest in our new ideas? Which ones should we adopt? Web site development Who is using our site? What do they think of it? How could it be improved? 31

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