- Income protection in workplace could triple with flexible benefits
- improved communication is crucial to success of flexible benefits
Employer investment in flexible benefits would significantly increase the take up of important protection benefits but improved communication is crucial, research* by MetLife Employee Benefits shows.
MetLife’s UK Employee Benefit Trends Study found that where employers contribute towards employees’ benefits, employees are much more likely to also pay towards them themselves. This in turn will substantially increase market penetration and the number of employees and their families that are protected.
Group income protection – which currently covers just 11% of employees – could see coverage almost triple if employers help with payments, preventing millions of families from facing the risk of significant financial hardship should illness or injury prevent them from working.
The findings were echoed across all product types surveyed, with life insurance coverage potentially increasing from 23% to 59% through shared payment and dental insurance more than doubling from 23% to 54%.
However, communication is crucial - just 31% of staff believe the rates and options are better if they buy through their employer.
Tom Gaynor, Employee Benefits Director of MetLife UK, said: “Employees are much more likely to buy cover when it comes with company co-payments. A benefits programme must meet the needs of the modern workplace on both sides of the equation covering the employer’s need for engaged and motivated employees and the employees’ needs for benefits that reflect different life stages and financial circumstances. Flexible benefits can do both of these things, but to be effective businesses need to ensure communication is working well.”
MetLife’s study highlighted key areas for employers and employee benefit providers to address including support for employees around their primary financial concerns with planning for retirement and becoming unable to work through illness or injury high on the list.
Employees recognise the importance of physical and mental health for them while employers also recognise the need for wellness programmes in the workplace with 82% saying it was on their agenda – more than any other HR objective cited by respondents.
MetLife’s Wellbeing Hub, included in its ProActive Protection product, helps employees engage in their personal wellness as well as giving employers unique insights into what can often be hidden issues amongst their staff which are highlighted through reporting on employees’ main areas of interest in the Wellbeing Hub as well as their use of the support services available.
MetLife is one of the fastest-growing life and pensions groups in the UK and its Employee Benefits division has offices in Brighton**. Employing around 150 people, it is the UK hub for the sales and administration of its employee benefits and individual protection businesses.
www.metlife.co.uk
* Research conducted by Research Runner among a representative sample of UK employees and employers
** MetLife’s Brighton office is situated at Invicta House, Trafalgar Place, BN1 4FR