Small and medium sized enterprises (SME’s) are the top target for employee benefit consultant (EBC) growth, with 60 per cent of consultants believing better market penetration in smaller firms is the industry’s top priority, new research shows.
The research, from MetLife, found 39 per cent of brokers believe better benefits communication will be a priority goal for SMEs, making that the top priority for EBCs targeting smaller firms.
A third of EBCs said benefits more suited to older workers would be a priority while 21 per cent said they expected increased SME demand for employee assistance programmes.
Small businesses account for 99.3%2 of all private sector enterprises by number, employing 15.7million people, 60 per cent of all private sector employment. The research found 46 per cent of EBCs believe that SMEs will increase their demand for bespoke benefits programmes tailored specifically to individual requirements.
MetLife UK employee benefits director Adrian Matthews says: “SMEs are the life-force of British business with a combined annual turnover was £1.8 trillion, nearly half of all private sector turnover.
“Smaller employers are increasingly aware of the need to attract and retain a skilled, motivated workforce, especially where they may not be able to compete with larger businesses on pay or business profile.
“Well-tailored benefits that are well-communicated can make a significant difference to SME staff retention and employees will welcome support in improving physical health and wellness as well as financial wellness in the workplace.
“Fast growth businesses, often in the technology sector are growing from two to 200 employees in months rather than years, going from a ‘no benefits’ environment to needing to provide benefits in a short period.
“One of the issues preventing SMEs from adopting workplace benefits may be the absence of a dedicated HR function or one individual completing multiple HR tasks. The role of the broker or EBC is vital in helping SMEs select the right benefits packages for their growing and diverse workforces.”
MetLife says it is focused on further enhancing strategic partnerships with ‘leading brokers and EBCs’ as it targets large corporates, including multi-national clients, as well as SMEs.
MetLife says it is the UK’s third largest group life provider by number of schemes it insures and the fourth largest group income provider.
