Press release 18 February 2025.
- Increased support for families of employees and the wider workforce is expected
According to GRiD, over the next 12 months, nearly a third (31%)1 of employers intend to increase their investment in employee benefits to provide support for staff. However, almost the same number (29%) of employers are looking to increase investment into funding support directly, which the industry body for the group risk sector believes is a concern.
Employers are effectively rolling the dice when they fund support directly to cover financial, physical, mental or social support for staff, and this can lead to many, potentially unforeseen, issues. There is no way of predicting how many employees will need support and for how long, or for which conditions, or how much it will cost, and it could be an unintended p11d taxable benefit for employees too. Employers who take this approach are therefore left unable to properly budget or offer consistency to staff.
While employers are facing increased financial pressures this year, GRiD warns that they should not risk the health and wellbeing of staff, particularly when employee benefits offer much better value than self-funding, and usually come with a huge amount of support to mitigate absence and expedite returns to work
Katharine Moxham, spokesperson for GRiD, said: “Employers should not be lulled into a false sense of security if they happen to have a healthier-than-usual workforce in any particular year. This model is not sustainable as at some point the reverse may well be true, and those employers who choose to fund support directly will need extremely deep pockets.”
Other areas where employers are increasing their activity include:
- encouraging engagement and utilisation of the support that’s available (34%)
- making it easier to access support and benefits such as via apps and online (33%)
- communicating available support to staff (32%)
- making support available to more of their workforce (29%)
- extending support to include family (28%)
GRiD believes it is prudent for employers to take advantage of all the support made available to them from both providers and intermediaries to ensure they are utilising every aspect of the employee benefits they sponsor, as in the current economic climate, those who hold the purse strings will demand good value. Many employee benefits, such as group risk benefits (employer-sponsored life assurance, income protection and critical illness) not only offer financial support but embedded services too. This can include support shaped to assist in areas of health and wellbeing which are effective at preventing absence in the first place, and rehabilitation support which can speed recovery and reintegration back to work.
Employers are often surprised to find out that Group Life Assurance (GLA) typically costs as little as 0.5% of payroll, and Group Income Protection (GIP) is often in the region of £300 per employee per year but can be as low as 0.25% of payroll, depending on how the policy is designed. Not only does it give peace of mind to employees and employers that neither will face any unexpected costs in the event of staff illness, but it may also reduce the likelihood of them being absent in the first place.
Katharine Moxham continued: “It’s good to see that investment in employee benefits is being bolstered this year despite some challenging financial conditions for businesses. Particularly pleasing is the continued investment to support more of the workforce which may include supporting families members as well, but employers need to take heed that helping staff by funding support on a case-by-case basis is speculative at best and a costly gamble at worst.”
- Ends –
1. Employer research was undertaken by Opinium from 7-15 January 2025 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
