More than three quarters of employers in Scotland do not have sufficient mental health support for staff, according to a report from Howden Employee Benefits.
The report, titled ‘Employee benefits and wellbeing in Scotland’, also said that 46 percent of employers doubted the effectiveness of their pension schemes.
The findings, based on a survey of more than 100 HR professionals and business leaders, revealed shortcomings in employee benefits and mental health support, and a disconnect between employer offers and staff needs.
Increasing reliance
Employees are increasingly relying on their employers for health support as NHS waiting lists in Scotland are at a record high. There is more demand for mental health support and chronic illnesses, which is all set against the backdrop of an ageing population.
In spite of this increasing employee reliance, the research found that only one in five companies offer private medical insurance (PMI), which Howden said was crucial for providing timely healthcare access, reducing NHS strain, and boosting employee productivity and satisfaction.
More than three quarters of employers (76 percent) do not provide sufficient mental health support for employees.
Growing awareness
However, more than a third (36 percent) of employers acknowledged the need to improve the health support they offer, which the report said “highlights growing awareness [of the] need for action”.
Saba Haran, employee benefits director at Scotland Howden, said: “With ongoing pressures on the NHS and a national cost of living crisis, prioritising employee health and wellbeing has never been more important.
“Employers need to adopt a strategic and employee-centric approach to their benefits provision and review their existing benefits to ensure they meet their employees’ needs and deliver business value.”
Benefits disconnect
The report also found a disconnect between employers and employees around the understanding and delivery of benefits.
More than two thirds (67 percent) of businesses lack insight into which benefits are most valued by staff, suggesting there is a dearth of data-driven strategy.
Pension provisions are another area of concern highlighted by employers, as 46 percent said they doubted the effectiveness of their workplace pension schemes. More than a quarter (26 percent) said they were concerned that employees are not saving enough for retirement.
Missed opportunities
The report also highlighted a missed opportunity for benefits provision, as 41 percent of businesses do not offer salary exchange for pension contributions. This means employers are “missing a tax-efficient opportunity to enhance benefits affordably”, it said.
As cost of living challenges continue, the survey also found that just 28 percent of businesses are offering discount sites to help employees manage daily expenses. Only 6 percent identified financial wellbeing programmes as a critical area for improvement.
Vital data
Haran said: “With 67 percent of businesses uncertain which benefits are most valued by employees, better data is vital to understand the impact of benefits and the best allocation of budgets. Equally, while pensions are the most valued employee benefit, they need more focus.
“Greater pensions engagement and education could help employees to maximise their pension savings and have a more comfortable retirement. Also, given the rising mental health concerns and economic pressures, prioritising comprehensive health and wellbeing support is now paramount.”
She added: “Businesses struggling financially to increase benefits can consider affordable ways to support employees. Prioritising virtual GPs or health cash plan schemes can offer cost-effective solutions for addressing employees’ healthcare needs without breaking the bank. Also, many are overlooking the advantages of salary exchange, a tax-efficient method to boost pension contributions. Employees also need to be aware of the value-added benefits already available within their existing policies and use them.
