A recent survey by risk industry trade body Group Risk Development (GRiD) found that 41 per cent of UK employees would give up a pay rise in exchange for employer-sponsored Group Life Insurance and Group Income Protection. These findings could indicate surprising new means for employers to reduce their overheads and maximise staff loyalty, one that a few SMEs are currently capitalising on.
Taking out a group policy can be substantially more affordable, and indeed less stressful than contending with a steady stream of pay rise negotiations. Offering a competitive benefits package also helps employers to attract the top talent and maintain a strong workforce of individuals reluctant to move firms and sacrifice their protection insurances. Less hiring, of course, means you can also cut down on time lost to interviews, not to mention your outgoing cash flow to agencies.
44 per cent of the survey respondents reported that their employee benefits schemes makes them feel valued, so it is no surprise that 40 per cent confirmed they would be more loyal to an employer that offers good benefits. Of the benefits valued most, pensions came out on top with 65 per cent of employees prioritising their retirement funds. Income protection, life insurance, critical illness and private medical insurance were the next in the line-up of desirable job perks. Meanwhile, health screenings, dental insurance and gym memberships played a less significant role in employees’ evaluations of job satisfaction.
GRiD spokesperson Katharine Moxham explains that a benefits package comprising life insurance, income protection and critical illness cover costs as little as one per cent of payroll. She reflects on why these benefits can offer so much leverage for the today’s employer:
“Employers who make this provision for their workforce are under no obligation to do so but those that do are well placed to make a real difference to them and their families in a time of financial and personal distress. What’s more is that they are also providing vital means of reducing the UK’s sickness absence burden and producing a more financially-resilient society.”
In short, you show initiative to look out for your team and they’ll give back with increased productivity, improved workplace stability and fewer salary battles in the boardroom.