Six out of 10 employers are planning to increase their spend on benefit technology in the next two years, with almost half (46 per cent) specifically looking to increase investment in financial wellbeing and employee health benefits technology.
Health and financial wellbeing are becoming a key issue for employers amid an ongoing cost-of-living crisis and as NHS waiting lists continue to be a cause for concern.
This research by Buck in conjunction with the Reward & Employee Benefits Association (Reba) also found that that almost one in three employers (31 per cent) were planning to increase investment in global benefits, while one in four (26 per cent) were looking to boost investment in their workplace savings propositions.
The report found that in total 56 per cent of the employers are planning to change their employee benefits platform over the next two years. Health and wellbeing platforms and financial wellbeing platforms lead the way, as two of the most popular areas for change selected by employers.
The research comes as analysis from the British Medical Association also shows that the number of people on NHS waiting lists has continued to climb, reaching a high of 7.68m this summer putting strain on employees’ health and wellbeing.
This has led to a significant increase in demand for private medical insurance according to data from the Private Healthcare Information Network (PHIN) — leading to some businesses to look to improve their offering in this area.
The research from Buck found that the majority of businesses polled (60 per cent) are planning on increasing their investment in benefits technologies over the next two years, with 16 per cent planning to make a ‘significant’ increase. Around half (45 per cent) of those polled are also planning on implementing new total reward statement technology, or changing their existing technology, suggesting that many employers are keen to display more value to their employees.
Buck head of employee benefits John Deacon says: “The rising cost of living in the UK has affected everyone with inflation exceeding the government’s target of 2 per cent every month since May 2021, hitting highs of close to 10 per cent last year.
“Employers have to address this and are often simply unable to offer pay rises in pace with inflation, so it’s no surprise to see that many businesses are looking for alternative ways to invest in the financial wellbeing of their employees.
“The same is true when it comes to health and wellbeing, and many employers are focusing on making their reward offerings fit for purpose, so that they can attract and retain the best talent in a tight labour market.
“Advances in automation and new uses for emerging technology such as AI, have driven big changes in the way that these reward programmes can be implemented and run.
“Cutting down on extra admin is driving efficiencies in the sector and allowing employers to deliver a more intuitive and engaging offering. There are serious challenges facing the U.K.’s workforce, but investing in their underlying benefits technology is a cost-effective way for businesses to begin to address these challenges, while also future-proofing their reward offerings.”
