Why are we falling short on in-demand employee benefits?

Published 4 October 2024 | 2 min read

Hiring the right employee in today's job market is more challenging than ever for New Zealand businesses. Owners, managers and HR often feel the pressure to not just fill positions, but to find candidates who align with their company's values and goals. The difficulty comes in attracting employees who will thrive in the role, contribute meaningfully to the team, and—most importantly—stick around for the long haul. Yet, despite this challenge, many businesses are overlooking a critical aspect of employee retention: benefits.

The wrong approach

When employers fail to attract the right talent, it’s not just a case of a mismatch between skills and job requirements. It’s a missed opportunity to build a team that drives long-term success. High turnover is costly—not just in dollars but in lost productivity, morale, and the company’s overall culture. Even when businesses manage to hire the right people, a lack of appropriate benefits can make it difficult to retain them.

For employees, the package of benefits speaks volumes about how much their employer values their well-being. Neglecting to offer in-demand benefits can push even the best employees to seek greener pastures elsewhere, leaving businesses scrambling to fill the gaps again.

What’s really going on?

The recent 2024 Workplace Wellbeing survey by the Employers and Manufacturers Association (EMA) and nib New Zealand shines a light on the gap between what employees want and what employers are offering. Hybrid work arrangements, for example, are a top priority for 76% of job seekers. Yet only 27% of employers are planning to invest in this option.

Medical and health insurance is another area where businesses are falling short—while 64% of employees rank it as important, just 29% of employers plan to provide it. These discrepancies highlight a growing misalignment between what businesses think employees want and what they truly need to stay motivated, healthy, and loyal.

The numbers don’t lie

Statistics from a recent Forbes article give further insight into why employers need to reassess their benefits packages:

• 79% of employees across all generations prioritise flexible work options—a perk that significantly influences job satisfaction.
• Mental health resources are critical for 62% of employees, underscoring the growing need for companies to address well-being holistically.
• Millennials and Gen Z are the least satisfied with their jobs, reporting lower-than-average job satisfaction scores (4.6 and 5.2 out of 10, respectively).
• Only 16.2% of workers rate their job satisfaction at 8 or higher, meaning a large majority of the workforce may be quietly dissatisfied.
• Flexible parental leave and upskilling opportunities are highly valued, especially by younger generations who are keen on career development and work-life balance.

These figures send a clear message: if employers don’t update their benefits to align with these needs, they risk losing out on top talent—especially younger employees who represent the future workforce.

Time to reassess your benefits strategy

New Zealand employers need to take a hard look at the benefits they offer and ask themselves whether they truly meet the needs of today’s diverse workforce. Flexible work options, mental health support, and comprehensive health insurance aren’t just perks—they are essential tools for attracting and retaining employees.

Generational differences play a big role in shaping what individuals value, but across the board, there is a shared demand for greater support in areas like flexibility, mental well-being, and professional development.

The right benefits package are a necessity in today’s competitive job market.