Press release 18 July 2023.
A quarter (26%) of employers claim that they know about all of the employee benefits available on the market, and a further 43% know about some of the benefits available for employees, according to new research1 from GRiD, the industry body for the group risk sector.
This is a concern because a lack of employers’ market knowledge could lead to them potentially missing out on new and emerging services that can support their staff and organisation.
When employee benefits are being put in place or reviewed, 44% of employers source their employee benefits directly – by contacting a provider or supplier themselves, and 34% do so by following up on opportunities that are sent to them from providers or suppliers. Only 26% of employers say they source benefits via an intermediary (or broker/adviser) and 23% via a trade body or federation where a third-party organisation has already vetted the provider.
With the employee benefits market changing so rapidly, it is both time-consuming and complex for employers to stay abreast of all developments themselves, especially on top of all their other responsibilities.
Katharine Moxham, spokesperson for GRiD, said: “Providers in our industry frequently add additional support to their services that really benefit the business, employees and their families. While some employers may be aware of such developments, it is an intermediaries’ responsibility to know what is available and how it may best suit an employer and their staff, and they can point employers in the right direction.”
All employers who sourced benefits via an intermediary saw value in doing so, with many seeing multiple advantages:
- 35% say the intermediary has expertise in employee benefits that they don’.
- 33% say the intermediary ensures the employee benefits they offer help them to be a competitive employer in their industry
- 33% say the intermediary helps them communicate their benefits to their workforce
- 30% say the intermediary keeps them informed of trends in the employee benefits space
- 28% say the intermediary helps them spend wisely
The research highlights that using an intermediary to source employee benefits has a number of benefits for both the employer and the employee. Although the findings show that larger business do have a greater propensity than SMEs to use an adviser (40% vs. 22%), there is still a huge opportunity for all employers to seek the support of an intermediary to help them source the most appropriate employee benefits. This is particularly true of employee benefits such as group life assurance, group income protection and group critical illness as this market continually enhances added-value support to meet the needs of the business as well as employees.
Katharine Moxham concluded: “The right intermediary will be able to support the employer in building their knowledge of the most appropriate employee benefits for their business, which will help to get the best possible outcome. As insurers strive to provide unique and more compelling products and services with greater flexibility and options, advisers are well placed to keep track of these developments and support employers in deciphering which ones are most appropriate for them.”
- Ends –
- The research was undertaken by Opinium from 9-22 January 2023 among 503 HR decision-makers and from 10-13 January amongst 1,212 employees at UK businesses.
For further information please contact:
SMUK Marketing and PR
Mob: 07747 611773
Land: 01252 843350
Spokesperson for GRiD
Mob: 07887 512508
Notes for editors
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 wellbeing 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 Paul White (head of technical, Howden Employee Benefits & Wellbeing) 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