Welcome to Aon Hewitt’s European Employee Benefits Benchmark Survey (EEEB). This is the second report based on our recent online survey of workers in ten leading economies. More than 7500 people took part, providing fresh employees perspectives on companysponsored benefits in Belgium, Denmark, France, Germany, Ireland, The Netherlands, Norway, Spain, Switzerland, and the UK. The report focuses on how benefits— the services or products that companies provide to their workers apart from salaries—might influence employees’ relationships with their employers. It is designed to help human resources directors and other senior managers improve the design and scope of benefit packages to make them more attractive to employees in a rapidly changing financial and economic landscape. The timing of the report—as Europe begins to emerge out of recession—underlines the importance of well-tailored benefits packages. In 8 of the 10 countries surveyed, over 30% of respondents intend to look for new jobs over the next 6-12 months (See Chart 1). In the UK and Ireland, the proportion was close to 50%.

1. Employee Benefits: Getting the Mix Right4
• As Europe emerges from a recession, many employees are considering their next job
move. Non-cash benefits, including pensions and healthcare, will play a key role in
helping them decide.
• The survey findings show that an optimal mix of cash and benefits, can vary among
national groups. The cross-border variation suggests that, when it comes to
benefits planning, international companies would benefit from offering a degree of
flexibility in the menu of benefits that they offer to their workforces.
• While the popularity of different benefits varied among employees in the 10 countries
surveyed, pension provision was the number one choice when asked what
benefits respondents might be willing to exchange for a proportion of salary.
• Nearly one-fifth of employees in the survey say that they have increased their private
contributions to pension plans. This was especially the case in the UK and Germany.
• A quarter of employees reported that they didn’t have a pension plan.
• Greater financial protection was the second favourite benefit amongst employees,
with more than one-third saying they would trade salary for an employer-sponsored
health insurance provision in the event of ilness/injury.
• A high proportion of respondents didn’t know if their employers provided health
benefits. The survey found similar levels of uncertainty with life assurance benefits.
• With regard to other flexible benefits, the most popular are employer-sponsored
education and childcare facilities.
• The least favoured flexible benefits are mobile phones and sports/entertainment days,
although the popularity of such benefits varied widely among different country groups.
• The prevalence of sick leave appeared to vary widely among countries. This was especially
true in countries that allow employees to take off “social days” to deal with personal and
family issues.
• As companies develop strategies to retain their staff or attract new employees, benefits
become an intrinsic part of the mix. However, across the full range of benefits, the survey
suggests that employers are not doing enough to communicate their benefit provisions
to employees. A high proportion of respondents in every country are unaware of
employer benefit provisions and the value of benefits received.
Executive summary