More than two in five employees say that they would forgo a pay rise of between 1 and 3 per cent for employer-sponsored protection insurances, research finds.
According to a study by Group Risk Development (GRiD), the trade body for the group risk industry, 41 per cent of employees would be prepared to give up a pay rise in order to receive Group Life Insurance and Group Income Protection from their employer.
Some 44 per cent of employees questioned state that their benefits package makes them feel valued by their employer and 40 per cent also say that they are more likely to stay with an employer that offers a good range of benefits.
When asked which benefits they valued most, pensions undoubtedly ranked most highly with nearly two-thirds of employees (65 per cent) placing them in their top three highest-valued benefits.
However, Income Protection, Life Insurance and Critical Illness benefits are also highly prized with 56 per cent, 47 per cent and 41 per cent respectively placing them in their top three highest-valued benefits.
Employer-sponsored protection benefits are valued more favourably than benefits such as discounted gym memberships (4 per cent), dental insurance (9 per cent), health screenings (18 per cent) and even private medical insurance (35 per cent).
Katharine Moxham, spokesperson for Group Risk Development says that, at a time when balancing the books and recruiting and retaining the right team can be a delicate juggling act for many businesses, the 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 payrise.
‘Through the provision of Group Risk protection products (such as Group Life Assurance, Group Income Protection and Group Critical Illness), 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.’
Moxham adds that offering a package of employer-sponsored life, income protection and critical illness cover typically costs just 1-2 per cent of payroll.
She says, ‘Employers who make this provision for their workforce 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.’