Press release 19 November 2024.
Nearly one in five (18%) employers leave employee benefits take-up to employees to initiate themselves instead of actively encouraging staff to use the benefits available to them, according to research1 released today from GRiD, the industry body for the group risk sector. GRiD highlights the potential waste of time and resources in investing in benefits if utilisation is not encouraged.
Katharine Moxham, spokesperson for GRiD, said: “Getting the right benefits for staff is a huge investment for any company, so it does not make any sense that a fifth of employers seem to be letting them gather dust on a shelf, metaphorically speaking. Making practical and effective use of employee benefits needs to be a priority for all businesses.”
Recruitment and retention
Employee benefits are often used as a point of differentiation to attract staff during recruitment. However, GRiD warns that employees can be let down if that enthusiasm is not extended past the recruitment process to support retention. Employers need to be consistent, and where employee benefits play an important part in the recruitment process, that attention to them needs to be continued.
Valuing employee benefits via utilisation
Although it’s wrong to say that employee benefits will only be of full value if they are utilised, there is indeed a correlation between deeper use and improved appreciation. However, when employees are left to their own devices to sign up for employee benefits, they are less likely to fully understand everything that is on offer and therefore less likely to make full use of it.
As GRiD points out, employee benefits that are not used, or not used fully, will be the first to be cut when budgets are tight.
Katharine Moxham continued: “In the event of budget constraints, any employee benefit that has low take-up rates is at risk of being dropped, which is such a loss to employees but also to HR teams who will have worked hard to set out the case for the benefit in the first place, as well as selecting the right provider.
“Recruits are often most open to hearing about employee benefits programmes so employers should strike while the iron is hot with this group. However, employers wishing to improve utilisation may need to regularly revise their approach amongst longer standing employees to get traction.
“Encouraging the take-up of employee benefits really is a virtuous circle as employees who have a positive experience will also start to communicate the advantages to colleagues too. While employee-to-employee communication is a vital part of the utilisation jigsaw, employers should never become complacent and should always have a strategy in place to encourage take-up.”
- Ends –
1.
Employer research was undertaken by Opinium from 9-16 January 2024 among 500 HR decision-makers at UK businesses.
For further information please contact:
Ali Cort
SMUK Marketing and PR
Mob: 07887 484247
acort@smuk.org.uk
Katharine Moxham
Spokesperson for GRiD
Mob: 07887 512508
Katharine.moxham@grouprisk.org.uk
Notes for editors
About GRiD
Group Risk Development (GRiD) is the industry body for the group risk sector, promoting the value to UK businesses of providing financial protection for their staff, enhancing their well-being and improving employee engagement. Our membership includes insurers, reinsurers, intermediaries and those operating in (or with other interests in) the UK group risk market. Together this forms a collective wealth of experience built over many years. Under the chairmanship of Colin Fitzgerald (Distribution Director – Group Protection, L&G Retail) GRiD aims to promote group risk through a collective voice to Government, policymakers, stakeholders and employers.
GRiD works with government departments and regulators involved in legislation and regulation affecting group risk benefits, and with other organisations involved in the benefits and financial protection arenas. GRiD also seeks to enhance the industry’s standing by encouraging best practice and by participating in industry-wide initiatives such as the professional qualification in group risk managed jointly with the Chartered Insurance Institute.
GRiD’s media activity aims to generate a wider awareness and understanding of group risk products and their benefits for employers and employees.
GRiD’s dedicated spokesperson, Katharine Moxham, provides expert media comment on a full range of group risk issues.
Follow Katharine Moxham on Twitter @KMoxham
