96 per cent of British workers underestimate the true amount that employers spend on employee benefits, according to employee benefits specialists Aon Consulting.
In Aon's survey of over 1400 respondents, when asked how much they think their company spends on their benefits as a percentage of their individual salary, 60% said they thought it was no more than 10%.
Just under half (42%) believed that a paltry 5% or less of their equivalent pay was put towards their benefits, while 28% had "no idea" at all.
In reality, British companies typically contribute between 20%-40% of salary in additional benefits. Only 2% of those surveyed by Aon believed that their employer spent at least 20% of their salary on benefits.
Examples of real company spend on benefits
· Where an employee is earning £26,000 per year, 21 percent of their annual salary is typically spent on benefits - so their total package is typically £31,460
· Where an employee is earning £60,000 per year, 39 percent of their annual salary is typically spent on benefits - taking their total package to £83,400.
Employee benefits are non-wage compensations given to employees in addition to their salaries. Common benefits include private medical insurance, life assurance, disability protection, holiday and pensions.
When Aon measured the same perception in 2007, they found that 98% of workers underestimated the true amount that employers spend on benefits with over two thirds 69% saying they thought it was no more than 10%.
Commenting on the survey's findings, Gareth Ashley-Jones, head of flexible benefits at Aon consulting, said: "There continues to be a huge gap between perception and reality - the research suggests that employees either take their benefits for granted or have no idea of what they actually are. In both cases employers are underselling their investment in the workforce.
"As the economy picks up, companies will need to work even harder to retain their talent. It makes business sense to improve employees' understanding of their benefits - highly effective tools to attract, retain and motivate staff. Relatively simple steps like providing total reward statements to employees are one way of increasing awareness."
