An obligation to look after staff and families is the main reason SMEs offer group income protection (GIP) to their employees, shows research from industry body GRiD, which represents the group risk protection sector (employer-sponsored life assurance, income protection and critical illness cover). This is closely followed by using the benefit to help differentiate them when looking to recruit and retain.
Key reasons for SMEs offering Group Income Protection (GIP) include:
31 per cent offer GIP to help them meet their obligation to look after their staff and families
25 per cent use GIP to help them differentiate their package to support recruitment and retention
22 per cent of employers understand that GIP can be a tax-efficient benefit for them
19 per cent use the benefit to help manage long-term absence
And 23 per cent believe they recoup the cost of the benefit in improved productivity and staff morale
Another key reason SMEs gave for offering GIP to their workforce is that they believe Statutory Sick Pay is insufficient to actually support people unable to work (29%). With the onus of responsibility for looking after the welfare of staff increasingly falling on the shoulders of employers, group income protection is being widely recognised as a central tool to help. Even to the extent of being debated last month in parliament, group income protection was put forward as being key in helping employers support their staff and help get them back to work. This is particularly so in supporting those in mental ill health – the biggest cause of claim on the insurance.
Please click here to view the full article.