Employers underestimate the importance of the benefits they offer staff after new research revealed half of employees would move jobs for better benefits.
Group risk benefits were also highly valued by employees but not commonly offered by employers.
Canada Life's study of the most commonly offered benefits by employers and those most highly valued by employees also found that better benefits would tempt 52% of staff into moving jobs.
Although both parties agreed on the top two benefits - a pension (1st) and increased holiday allowance (2nd) - the next six varied considerably, with employers excluding all group risk products aside from death in service (4th).
However, employees said that income protection (IP) was the third most important to them, followed by redundancy cover, death in service, critical illness, and health insurance.
The insurer said the results illustrated the value gap present between employers and their employees, suggesting they receive benefits viewed as non-essential such as free eye tests (3rd most commonly offered), shopping discounts (5th), a bonus (6th), maternity cover (8th) and a subsidised canteen (8th).
It also noted that 8% of employees felt that the value of benefits has increased during the difficult economic climate of recent years, while a third (33%) of part-time staff do not receive any benefits at all, compared with 17% of full-time workers.
Paul Avis, director of sales and marketing at Canada Life Group Insurance, believes the research shows there is a real opportunity for employers to set themselves apart from competitors.
"Employees clearly value benefits and with significant rises in the cost of living they are looking away from bonus benefits, such as gym membership and shopping discounts," he said.
"Instead, they are looking for benefits that will protect their income - whether on account of illness, critical or otherwise, or redundancy. These are the benefits that will truly offer peace of mind and comfort to them and their families.
"By offering benefits such as income protection and critical illness cover, employers can demonstrate the worth they place upon each employee and not only will this help to retain staff and improve morale, but it may well prove attractive to prospective employees," he added.
