More than two in five employees would be prepared to give up a pay rise in order to receive employer sponsored protection insurances as part of their benefits package according to new research from Group Risk Development.
The research found 41 per cent of employees were prepared to waive a pay rise of between 1 and 3 per cent in order to receive group life insurance and group income protection from their employer. And 44 per cent of employees questioned stating that their benefits package makes them feel valued by their employer, with 40 per cent saying that they were more likely to stay with an employer that offered a good range of benefits.
When asked which benefits they valued most, pensions ranked most highly with 65 per cent placing them in their top three highest valued benefits. But income protection, life insurance and critical illness benefits were valued by 56, 47 and 41 per cent respectively. Employer sponsored protection benefits were valued more favourably than benefits such as discounted gym memberships, ranked a top-three benefit by 4 per cent, dental insurance on 9 per cent, health screenings on 18 per cent and even private medical insurance on 35 per cent.
Grid spokesperson Katharine Moxham says: “At a time where balancing the books and recruiting and retaining the right team can be a delicate juggling act for many businesses, these findings make interesting reading. Our research highlights how much employees value their benefits package – and employer sponsored insurance – to the extent that many would opt for group risk protection benefits over a pay rise.
“Through the provision of group risk protection products, employers play a vital role in ensuring that staff and their families are adequately protected from the financial devastation that death or disability can bring.
“Offering a package of employer sponsored life, income protection and critical illness cover typically costs just 1-2 per cent of payroll. Employers who make this provision for their work force are under no obligation to do so but those that do are well placed to make a real difference to them and their families in a time of financial and personal distress. What’s more they are also providing a vital means of reducing the UK’s sickness absence burden and producing a more financially resilient society.”