Just 18% of staff fully understand how much their benefits cost their employer and only 24% fully understand how their benefits work, according to a new survey.

Businesses are missing an opportunity to make the most of staff benefits, according to a new survey commissioned by Oval Financial Services. The survey, carried out by YouGov, asked more than 4,000 employees from companies throughout the UK what they thought about the benefits they receive.

According to Debby Hannaford, Oval’s reward and recognition expert, the survey has significant implications for businesses. “If I were an employer I would be concerned that staff don’t understand their benefits. If they don’t understand them then they are less likely to value them,” she says.

Hannaford adds it is surprising that so few employees have any idea of what their benefits actually cost their employer. “The irony is that benefits are a significant cost to any business. They’re a great way of showing staff how much the team is valued – and how much the employer is willing to invest in keeping them.”

“Recruiting and retaining staff are key challenges facing employers, and reward has a crucial role to play,” says Hannaford. “This survey can be used as a starting point to show what employees actually want, and so help employers develop their reward strategies, as well as being a vital part of their benefit review process.”

Among the other findings of the survey are that:

• 64% of respondents earning the UK national average salary don’t believe they are saving enough for their retirement
• Included in the top benefits respondents would like to receive from their employer were private medical and dental insurance
• When asked, 70% of respondents would use the internet for financial advice
• The top three issues concerning employees are getting a better work/life balance, maintaining good health, and having sufficient income during retirement