Two-fifths of employers (43 percent) plan to increase investment in employee benefits in the next 12 months, according to research with HR leaders.
The findings show that employers recognise the benefit in supporting staff and are prepared to fund it, according to GRiD, the industry body for the group risk sector, which conducted the research.
However, the industry body voiced concern that 37 percent of employers are planning to fund support for their staff directly.
GRiD said employers can get better value and consistency in quality if the budget is invested in support from an established employee benefits provider.
It also warned that employers that offer support on an ad-hoc basis or based on individual need could inadvertently perpetuate inequality. GRiD emphasised that when support is prearranged and contracted, through a group risk insurer, all employees receive equal access.
The research, carried out by Opinium in January 2024 with 500 HR decision-makers, also found that a greater number of staff are likely to have access to workplace support over the coming year.
Results showed that 44 percent of employers plan to extend their provision to more of their workforce.
Communication about the employee benefits available is crucial, so GRiD welcomed the finding that 43 percent of employers will encourage greater engagement and use of benefits in the next 12 months. Results also showed that 40 percent of employers will make it easier to access support and benefits via apps or online, and the same percentage will increase their communication of the support available to staff.
Katharine Moxham, spokesperson for GRiD, said: “Based on these findings, the landscape for employee support is looking positive. We would, however, encourage employers to discuss their approach with experts, both providers and intermediaries, to keep abreast of developments in this fast-changing industry to ensure that the support they offer is both competitive and appropriate. Increased investment is good, but any budget must be spent wisely to get value.”
Clare Lusted, head of product proposition at Unum UK, said that “a sizeable minority of UK businesses investing more in employee benefits is good news”. But she added that offering benefits in isolation is not enough.
“Engagement is essential to drive higher utilisation across all sections of their workforce, which requires employers to have targeted and meaningful communication and engagement strategies in place. Without these, they risk their employees missing out on the full rewards of their investment.”
Lusted highlighted further research, commissioned by her firm, that revealed that 56 percent of survey respondents believed their wider employee benefits package had a positive impact on their happiness at work.
The research, conducted by WPI Economics, also showed that 57 percent said employer-provided health and wellbeing schemes would be a key factor in them staying with their current employer. “This further underlines just how important employee benefits can be for recruiting and retaining top talent,” she said.
