Less than half of UK employers believe their managers or employees properly understand the added-value services included in workplace benefits, according to research from Towergate Employee Benefits.
According to the data, only 47 per cent of employers think their managers understand these features well, and just 41 per cent believe the same is true for employees.
These services, which include virtual GP access, mental health support, digital physiotherapy, second medical opinions, and assistance with menopause, fertility, or eldercare, are often embedded in products like private medical insurance, life assurance, income protection, and critical illness cover.
The report suggests that low awareness is partly due to poor communication with employers, acknowledging that limited understanding among managers contributes to even lower awareness among employees.
The research also suggests that smaller businesses with few employees, where they are likely to claim on core insurance policies, added-value services may be the most frequently used part of the package. These services, already included in existing cover, can also be more cost-effective than buying them separately.
Towergate says employers need to understand what is included in their benefit packages and ensure staff can access and use what’s available. It also calls on providers and advisers to support clearer communication and better engagement.
Towergate Employee Benefits head of group risk David Williams says: “Group risk benefits have traditionally been sold on their financial benefits, with the added value benefits being just that – added value. But there is an argument to say that it should be the other way round. Whereas only a limited number of employees in a company may ever have to claim on their group risk insurance, every employee in the company can benefit from the embedded benefits.
“It is time additional benefits were placed front and center when employers purchase the main employee benefit or insurance, as well as when they communicate the benefits. The added-value benefits will often be the entry point for many employees in engaging with their benefits. The majority won’t need to make a claim, but often they can all benefit from the benefits.”
