Companies are changing benefit policies to reflect post-pandemic priorities and attract and retain staff, according to Gallagher’s 2021 benefits strategy benchmarking survey report.
The report, which surveyed over 230 UK organisations, found that 46 per cent plan to change their current benefits offerings while 71 per cent will be enhancing their benefits.
The key trend the report showed is that health and wellbeing continue to be a significant focus this year as the workforce becomes more agile in adapting to change. Additionally, 10 per cent of organisations witnessed an increase in uptake of private medical insurance while 36 per cent of organisations offered company-funded health screenings.
76 per cent reported offering an employee assistance programme (EAP), and there has been an increase in fitness-related benefits such as discounted gym memberships (69 per cent). Annual leave has become more important to support employees’ mental wellbeing.
Holiday or annual leave is a statutory benefit in the UK, and just over half of organisations (51 per cent) have applied the same holiday entitlement to all employees. The ability to buy or sell holidays (36 per cent) is up slightly compared to last year, and of those who offer flexibility, around 42 per cent allow both buying and selling of holidays.
In addition, organisations are offering a variety of alternative leaves outside of family leave, including bereavement/compassionate leave (93 per cent), study leave (58 per cent), volunteering leave (36 per cent), carers’ leave (22 per cent), a day off on birthdays (10 per cent).
Companies are attempting to provide more family-friendly benefits. As a result, maternity and paternity pay has increased, with 88 per cent increasing enhance pay compared to 62 per cent two years ago. 41 per cent of respondents provide shared paternal leave on the same basis as maternity leave, with paid paternity leave becoming more common. Extensive leave has also increased among 32 per cent of respondent organisations, compared to only 17per cent two years ago. For the most part, adoption policies are consistent with maternity policies (88 per cent).
The long-term impact of Covid-19 on working practices is also beginning to emerge, with 64 per cent of organisations stating that they will not return to pre-pandemic working practices. In total, 86 per cent of organisations have changed their working practices in the last year to provide more agile or flexible working. A fifth of organisations have also offered change shift patterns, and half have provided home office funding for their workforce. Reflecting the impact of the previous year on the workforce, 10 per cent of organisations have seen an increase in employee uptake of private medical insurance (PMI), while 19 per cent have seen an increase in the use of sick pay.
Company-funded private medical insurance (PMI) has remained the most popular health benefit provided (77 per cent). Last year, 32 per cent of respondent organisations offered company-funded health screenings or medicals, while 36 per cent offered company-funded health screenings or medicals. The percentage of businesses that offer sick pay has risen slightly, from 43 per cent last year to 51 per cent this year.
Gallagher’s employee benefits consulting division in the UK CEO Nick Burns said: “The pandemic has prompted a mass shift in working habits, and companies are beginning to reflect this accordingly when it comes to their benefits strategy.
“As Gallagher’s 2021 Benefits Strategy and Benchmarking Survey reveals, areas such as health and wellbeing and ensuring a family-friendly approach to benefits are increasingly viewed as central to the employee experience.
“This will be an ongoing process as in 2022; we can see that benefit redesign is very much on the agenda. Benefits are of course just a part of the jigsaw puzzle to the wider employee experience and how getting that right will help with talent retention and organisational culture.”