New research has found that British businesses are needlessly losing billions of pounds each year due to poor workplace communication about benefits on offer, according to thomsons.com.
The ‘Money Talks: Communicating Employee Benefits’ report was carried out on behalf of income protection firm Unum. It found that businesses are losing £2.7 billion every year by not informing their employees more thoroughly about benefits, as it is resulting in a less loyal and productive workforce.
It is also suggested that business who inform staff better have more chance at prospering in austerity, as it is claimed it could improve staff retention rates and lower the risk of sickness absence.
Talking about the data, CEO of Unum UK, Peter O’Donnell, told hrmagazine.co.uk: “Our experience shows that contrary to employers’ beliefs, communicating with staff about financial protection and well-being initiatives such as income protection and private medical Insurance, leads to lower absence rates and reduced time off sick.”
He added: “Having an open dialogue between employers and employees about benefits builds a more productive and loyal workforce, and the bottom line benefits are evident.”
The study, which was published by the Cass Business School, took data from the government’s 2011 Workplace Employment Relations Study (WERS), as well as questioning employees and employers from 2,680 workplaces.