Just one in five companies in Scotland offer private medical insurance (PMI), according to a report from Howden Employee Benefits.
The report, entitled Employee Benefits and Wellbeing in Scotland, surveyed more than 100 HR professionals and business leaders, also found 76% of companies lacked sufficient mental health support, with only 23% offering comprehensive services.
Just over a third (36%) acknowledged the need for enhanced mental health initiatives.
More than two thirds (67%) of businesses were uncertain which employee benefits are most valued.
And while 28% of businesses were found to be offering discount sites to help employees manage daily expenses, only 6% identified financial wellbeing programmes as a critical area for improvement.
Saba Haran, employee benefits director Scotland at Howden, said: “With ongoing pressures on the NHS and a national cost-of-living crisis, prioritising employee health and wellbeing has never been more important.
“Employers need to adopt a strategic and employee-centric approach to their benefits provision and review their existing benefits to they meet their employees’ needs and deliver business value.
“With 67% of businesses uncertain which benefits are most valued by employees, better data is vital to understand the impact of benefits and the best allocation of budgets.
“Equally, while pensions are the most valued employee benefit, they need more focus.
“Greater pensions engagement and education could help employees to maximise their pension savings and have a more comfortable retirement.
“Also, given the rising mental health concerns and economic pressures, prioritising comprehensive health and wellbeing support is now paramount.”
Haran also highlighted cost-effective strategies for businesses looking to enhance their benefits packages.
“Businesses struggling financially to increase benefits can consider affordable ways to support employees.
“Prioritising virtual GPs or health cash plan schemes can offer cost-effective solutions for addressing employees’ healthcare needs without breaking the bank.
“Also, many are overlooking the advantages of salary exchange, a tax-efficient method to boost pension contributions.
“Employees also need to be aware of the value-added benefits already available within their existing policies and use them.
“As employee benefits consultants, we can help companies navigate these challenges and seize the opportunity to align benefits with employee expectations and the demands of the market to create a healthy and productive workplace environment that attracts and retains talented employees.”
