Workplace packages ignored by nearly 40pc of employees

The survey – which polled 150 human resources managers and 500 individual employees – found, while 80pc of workers said employee benefits were "appealing", 38pc said they had no plans in the near future to take up any of the available benefits.

Despite this, 25pc of employees said they saw benefits packages as a deciding factor when selecting employment. A total of 76pc of respondents agreed that a good benefits package could influence their decision to stay with their employer.

The survey also found that more than 70pc of employers agreed it was important to match benefits with the needs of employees to further encourage recruitment and retention.

And it found that around 86pc of employers claimed to consult their staff on benefits before implementing them and of that 80pc said they consulted their employees’ trade unions on benefits such as pensions before implementing them.

But only 23pc of employees claimed they were consulted on benefits – something it said raised questions as to how closely voluntary employee benefits fit workers’ needs.

AIG UK Benefits head of sales Terry Pegg said: "The research highlights communication as a key issue for organisations offering voluntary benefits.

"Communicating the advantages, scope and potential impact of benefits successfully presents an opening for employees to engage with their people.

"However, to do this effectively organisations first need to talk with their staff, define what they want from this type of product and understand their motivation to acquire them.

"Companies should present all the information and options available to employees so that they can buy into the benefits on offer."