Employers still feel morally obliged to protect staff by providing group risk benefits, despite the difficult economic climate over the past 12 months.
Just over one-third (36%) of employers that offer group risk benefits do so because they feel obliged to look after staff and their families, according to Group Risk Development Employer Research by industry body Group Risk Development (Grid), which surveyed 500 employers with up to 1,000 staff.
A quarter of employers (26%) offer group risk perks because they help them recruit and retain key personnel, while two in 10 (21%) offer the perks because they see them as an essential part of the core package. Also, 11% see group risk benefits as an essential part of a flex package.
Other reasons for employers offering group risk perks were helping to deliver contractual obligations (18%), the fact that the cost can be recouped in improved productivity and team morale (15%), and staff requesting it to be added to the package (10%).
Katharine Moxham, spokesperson for Grid, said: “Despite the economic downturn, group risk benefits are still valued by both employers and employees. It is also encouraging for us as an industry that the effectiveness of group income protection [GIP] vocational rehabilitation is recognised by employers, with 20% stating GIP helps them to manage long-term absence and get staff back to work more quickly.”
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