A third (34%) of employers are dissatisfied with their existing benefits arrangements, says the LCP Risk Benefits Survey 2010: Trends in health and welfare benefits.
The most common drivers for change include: the desire to extend existing benefits to more employees (26%) and wanting to introduce new benefits (24%).
LCP, part of the Alexander Forbes group of companies, commissioned the survey into the attitudes and concerns of 50 UK employers regarding health and welfare benefits. The findings focus on the provision of long-term disability, ill-health early retirement, private medical insurance and employee assistance programmes.
The survey found that employee benefits such as disability and healthcare need to be rapidly re-assessed by HR directors and senior management so that employers can understand the potential impact on liabilities and costs.
Private medical insurance is a key benefit, according to respondents, with 90% providing cover for at least some employees and 30% providing cover to all staff.
Over 84% of employers offer disability benefits beyond the provision of contractual sick pay. Only 56% of employers offer an employee assistance programme (EAP) to all staff and a further 12% say this is offered to some staff.
Of the respondents who offer income protection benefits, 19% advised that they had terminated the employment of an ongoing claimant in the past two to three years.
Carlos Correia, senior consultant at LCP, said: “Employers need to act now and review employee benefits packages before the proposed legislative changes take effect.
“Failure to take action and rapidly re-assess employee benefits could prove to be a costly mistake.”
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