It would be a mistake if employers seek to ride out the upcoming recession by axing their employee benefits offerings, according to Steve Herbert, wellbeing and benefits director at Partners&.
Herbert said that while employers may need to adjust spending commitments in light of the Bank of England’s predictions of a year-long recession, cutting employee benefits would be a mistake.
“We completely understand – and fully accept – that faced with such grim economic predictions many employers will need to adjust their spending commitments to ride-out the recession ahead,” Herbert said.
“Yet our very real concern is that some employee benefits offerings might be surrendered as part of any such review. We genuinely believe that this would be a mistake.”
Partners& warned the economic downturn is far from the only significant concern employers face as Covid and long Covid, an overwhelmed NHS and poor worker mental health caused by the cost of living crisis continue to create challenges for employers.
Herbert continued: “As we witnessed during the worst of the Covid-19 crisis, employee benefit insurances and protections are often at their most valuable, important and useful when times are tough, and when employers have limited financial options available to support their workers.
“A good employee benefits offering should offer important protections, useful support features, and of course offer a viable route towards full health and a speedy return to work.”
Partners& also highlighted the continuing concerns around recruitment and retention across the country, adding the UK could still face candidate shortages and skills gaps next year.
Herbert concluded: “The reality is that 2023 looks set to be a really difficult year on so many levels. We are working with clients already to ensure that they are equipped to weather the coming economic storm and build resilience into their business so that they can be in a position to bounce-back quickly once things eventually improve.
“Now, more than ever, employers will need to retain their best employees, while also attracting what new talent is available. Employers will also need to do everything they can to keep their workforce fit, healthy, and productive.”
For more on how the UK’s talent shortfall and Covid is driving unprecedented demand for group risk benefits among employers, see our July group risk analysis.