In the battle for the best talent, there is increasing pressure on employers to offer attractive benefits over and above salary.
Never before have employees considered their future as intensively as they do now. This is also reflected in the desire for social benefits. Company pension schemes are particularly popular. Nine out of ten respondents find a pension scheme (91%), private health insurance (90%) or tax-free future benefits such as income tax-free company pension schemes (89%), particularly attractive when looking for a job. This is shown by the latest “Health & Benefits Study” by GrECo, which surveyed both employees and employers.
Key findings of the Health & Benefits Study:
GrECo asks what Austria’s employees want
“The demands of the job continue to rise. Many employees want their employer to support them in their day-to-day challenges. Additional pension and health insurance that goes well beyond basic state provision is also increasingly appreciated. At the top of the wish list are solutions that offer employees solid protection for the future,” explains Joachim Schuller, Competence Centre Manager Health and Benefits at GrECo.
Long-term security is the biggest loyalty factor
Companies have long been aware that benefits that are up-to-date and particularly relevant to employees’ quality of life are the best pull factor into the company and have a direct influence on loyalty. Above all, long-term benefits such as pension solutions have a higher priority for 8 out of 10 respondents (83%) than short-term benefits such as fitness programmes. However, there is a variation with Gen Z, who focus on other challenges such as mental health and work-life balance.
“Research shows that Gen Z is more prone to burnout and stress. The mental health aspect is therefore becoming increasingly important to counteract staff turnover and low productivity,” explains expert Schuller. “It’s all about a coordinated package that can ensure both prevention and the appropriate cover in case of need.”
Occupational pension provision as an untapped opportunity with great potential
Despite all efforts, 67% of companies are not yet utilising the benefits of company pension schemes. Yet tax-free future provisions, occupational disability insurance and pension commitments offer precisely the financial security employees want. The annual report of Pensionsversicherung Österreich shows that a quarter of Austrian employees (25%) are unable to work before retirement and only 4% of employees in Austria have taken out private occupational disability insurance. However, this gap is still only covered in practice by around 17% of companies. Only 27% also offer a “pension commitment”, even though this would be an important offer in view of increasing life expectancy by ensuring that the standard of living is maintained in old age. Also, state pensions will not cover the financial needs to maintain living standards.
Changing needs: benefits must be redefined
In the battle for the best talent, there is increasing pressure on employers to offer attractive benefits over and above salary. Over a third (35%) of domestic employees are even prepared to give up 10% of their salary if they receive important benefits in return – among Gen Z, this figure is one in two (46%). However, benefits such as working from home or flexible working hours are not among them. They are seen much more as a must haves and, like the fruit basket, which only 24% rate as very appealing, have long since ceased to be a unique selling point.
“A ‘one-size-fits-all solution’ for benefits is no longer in keeping with the times. Companies that recognise the needs of their employees and act accordingly are better equipped to meet the challenges of the modern working world and are more successful in the long term,” says Schuller.
New challenges lie in communication
There is also a need to catch up in terms of communication: only 56% of employees are aware of all the benefits on offer. Employers urgently need to create an accessible overview of the benefits on offer and communicate these on an ongoing basis. Around a third (32%) of the companies surveyed also stated that they did not know exactly what percentage of their payroll was spent on benefits.
“This clearly shows that companies urgently need to improve their communication strategy for existing employees, as 88% want an employer that cares for them. Only those who combine long-term security and modern working models will be able to compete for the best talent – especially in times of a shortage of skilled labour,“ concludes Schuller.
About the survey
GrECo prides itself on regularly conducting in-depth research with clients and individuals to stay ahead of the trends across multiple industries. This survey was developed by Austrian Health & Benefits experts and conducted online between June and August 2024. In total, 261 corporate clients completed the questionnaire. Participants included Austrian companies from diverse sectors, with significant representation from services (14%), finance and trade (13%), mechanical engineering, electrical engineering, metal production and processing (12%), and others grouped under “Other” (20%).
Ewelina Jaworska-Bien
Group Practice Leader
Health & Benefits
T +48 504 178 064
Joachim Schuller
Competence Center Manager
Health & Benefits
T +43 664 962 39 11
