Over half of UK employers are out of sync with their staff by failing to match their benefits packages with the needs of their employees, according to business consultancy Croner.

Research from Croner showed that although many employers offer perks, 53% of them said their employees were not making use of them.

"We are increasingly seeing that workers are not solely motivated by money," says Croner reward business director Andrew Walker. "With modern day lifestyles becoming ever more demanding, employees are looking to employers to help them achieve that essential work-life balance, whether it is by allowing them to work more flexibly or through something such as free health care."

"Businesses can help employees achieve this balance by regularly reviewing their schemes and bringing them up-to-date with the requirements of their employees," he adds.

Research findings

• 93% of employers rated company pensions as their top benefit
• However, 44% of employees say they would choose private medical insurance
• 34% say flexitime was their preferred perk

Neither of the last two benefits is widely offered by UK employers, according to Croner.

Instead of offering a set series of benefits, the Chartered Institute of Personnel and Development (CIPD) believes offering employees the additional money rather than the perks can be an effective alternative. But it warned this approach should be accompanied by financial education, so employees can make informed decisions on how to spend or invest the money.

CIPD employment conditions adviser, Charles Cotton, adds that far from becoming obsolete, financial perks such as a good pension scheme reveal a lot about a company: "Pension schemes can say a lot about how a company treats and views it's staff; if it has no pension scheme or pays very little into it, the perception among employees is that a poor pension scheme must mean the company hasn't got much to offer.

"SMEs have the advantage that any decisions on flexitime or perks packages can be made quickly without resorting to paperwork and multiple layers of decision making," he says.

Croner's tips on how to improve company benefits schemes:

• Review the current company benefits scheme. Decide what needs to be changed and what can remain the same.
• Achieve a benefits balance. Try to achieve a balance between offering the more traditional benefits, such as a pension scheme and benefits, such as flexitime.
• Emphasise the benefits during the recruitment process, so that prospective candidates are fully aware of what the company offers.
• Establish benchmarks for recruitment, retention and absence, and measure these regularly to establish the effect the benefits scheme has.
• Count the cost. Estimate the cost of implementing new benefits as it is important to recover the investment.
• Allow for change. In your policies, ensure that there are provisions for future change to meet developing business needs.