More than two-fifths (44%) of employers contact a provider or supplier directly when sourcing or reviewing employee benefits, according to research by group risk industry body Group Risk Development (Grid).
Its survey of 503 HR decision-makers and 1,212 employees at UK organisations also found that 34% follow up on opportunities from providers or suppliers. Only 26% source benefits via an intermediary, broker or adviser, and 23% via a trade body or federation, where a third-party organisation has vetted the provider.
Of those that sourced benefits via an intermediary, 35% said they did so because it has expertise in the area that they do not and 30% found it kept them informed of trends in the benefits space. One-third (33%) said the intermediary ensures the employee benefits it offers help them to be a competitive employer in their industry and communicate these to their workforce, while 28% found it helps them spend wisely.
Larger business have a greater propensity than small-to-medium enterprises to use an adviser (40% versus 22%).
One-quarter (26%) of respondents claimed to know about all of the employee benefits available on the market, while a further 43% know about some of the benefits available for employees.
Katharine Moxham, spokesperson for Grid, said: “Providers frequently add additional support to their services that really benefit the business, employees and their families. The right intermediary will be able to support the employer in building its knowledge of the most appropriate employee benefits for its business, which will help to get the best possible outcome. As insurers strive to provide unique and more compelling products and services with greater flexibility and options, advisers are well placed to keep track of these developments and support employers in deciphering which ones are most appropriate for them.
“There is still an opportunity for all employers to seek the support of an intermediary to help them source the most appropriate employee benefits, such as group life assurance, group income protection and group critical illness.”
