The Crucial Role of Employee Benefits in Recruitment: Insights from Recent Study
A comprehensive study conducted with 3,126 respondents has unveiled the significant impact of employee benefits on recruitment, dispelling previous assumptions about their importance. The findings reveal that a staggering 80% of employees are willing to switch jobs for a better benefits package, with this number soaring to 91% among Generation Z. This demographic's willingness to leave their current positions in search of enhanced benefits starkly contrasts with the figures of Millennials at 85% and Generation X and Baby Boomers at 76%.
Elina Koivisto, a researcher from Aalto University who led the study, emphasized that benefits are becoming a paramount factor for young individuals when assessing potential employers. As public organizations grapple with a wave of pension retirements, attracting talent with competitive benefit offerings tailored to the expectations of younger generations is becoming critical.
The study highlights that one in three job seekers would decline a job offer if the benefits do not align with their expectations. This aversion is particularly acute among younger generations, with 46% of Generation Z indicating they would refrain from accepting a new role if the benefits package is not attractive enough. This data underlines the need for employers to understand and meet the values and expectations of younger workers. Elina Koivisto notes that offering relevant, flexible benefits can provide public employers with a crucial competitive edge, particularly as they compete with the private sector for talent. A thoughtfully designed benefits package should be viewed not merely as a cost but as an investment in the future workforce.
Despite the evident necessity for compelling benefits, many organizations face challenges in effectively managing these offerings. The public sector, characterized by large workforces and complex regulations, often finds the administration of employee benefits to be labor-intensive and ineffective without appropriate tools.
This is where digital benefits services come into play, providing solutions to streamline the benefits management process. Automation can help alleviate the administrative burdens that payroll departments experience, such as tracking receipts or handling physical coupons. With platforms like Epassi, employers can effortlessly offer a diverse array of benefits through a digital portal while minimizing costs by only paying for the benefits actually utilized by employees. According to Åsa Severgårdh, CEO of Epassi, this transformation enables organizations to provide appealing benefits packages that align with the high expectations of today’s workforce.
Founded in 2007 in Helsinki, Epassi has become a market leader in payment solutions for employee benefits across the Nordics, Germany, the Netherlands, Italy, the UK, and Ireland. Epassi aids over 1,000 employers in Sweden, helping around 1 million employees access digital wellness, lunch, and cycling benefits. The company has been recognized by the Financial Times as one of Europe’s fastest-growing companies in 2022, 2023, and 2024.
To learn more about the study, you can read it at Epassi Study. Explore further information about Epassi at Epassi Official Website.
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