The majority, around 73 per cent, of UK startups are planning to overhaul their employee benefit programmes, with 47 per cent prioritising Private Medical Insurance and mental health support as a response to NHS delays.
The research for Howden Employee Benefits’ new report, Benefits that build – Exploring the impact of employee benefits on startup growth, was conducted by YouGov who surveyed decisionmakers from over 100 UK startups, 2-5 years old, with fewer than 250 employees.
The research found that the top three benefits provided by startups are workplace pensions at 80%, PMI at 41% and mental health support at 38%.
According to Howden, the findings indicate a growing realisation that employee benefits are important tools for talent recruitment and retention, as well as corporate success as nearly half, or 46%, view it as critical. But currently, nearly one-third of businesses are failing to attract and retain employees.
It also found that 42% of companies want to boost workplace pensions to improve retirement outcomes, while 35% intend to offer gym memberships or lifestyle discounts to encourage employee wellbeing and around 34% are considering group life insurance for increased.
Howden Employee Benefits director of small business solutions Richard Gould says: “In 2023, the UK had 5.6 million registered businesses, with 99.9 per cent classified as SMEs. Startups are an increasingly important element of this, with 801,006 new businesses created between 2022 and 2023, a 6.4 per cent rise from the previous year.
“Howden is the ultimate startup success story. In 1994, three friends founded an insurance brokerage with a People First approach. Today, we’ve grown into a global business but have stayed true to our founding principles.
“Our own employee benefit offerings have been key to helping Howden attract and retain top talent and, as our survey highlights, UK startups also view benefits as essential for their recruitment strategies and businesses success.”
