Private medical insurance (PMI) has surged in popularity as an employee benefit over the last year, according to XpertHR.
Two thirds (65%) of employers surveyed in the latest research said they provided PMI to their employees – up 8% from 57% last year – and made it the fourth most common benefit.
Counselling services and employee assistance programmes (EAPs) were the most popular benefit being offered by 90% of respondents, emphasising the importance workplaces are putting on supporting employee mental health.
Pre-pandemic in 2019 three quarters (75%) of organisations offered counselling or an EAP, but in the three surveys since the Covid-19 outbreak, this figure has been at or close to nine in 10.
XpertHR said its research highlighted “the shift of attention among employers towards employee wellbeing following the start of the pandemic”.
The figures support Worldwide Broker Network global employee benefits practice leader Alan Fergusson’s view that EAPs were becoming far more important to employers.
He told Health & Protection that organisations were paying more attention to how they could use and value their EAP and in many cases choosing to pay for dedicated service providers rather than add-on versions provided with other wellbeing benefits.
But he added that having useful and insightful data was key to understanding how well these programmes were being used and valued by staff.
Life cover remains popular
Other leading benefits from the survey included life assurance, which was provided by 82% of businesses, and paying employees’ professional membership fees, which 70% of organisations did.
The data was based on research undertaken in April and May with responses received from 170 organisations that between them employ more than 290,000 people.
Cycle-to-work schemes were one of the biggest fallers having been ranked in the top three and provided by 70% of businesses last year.
This year it dropped by 8% to being offered by 62% of employers which the report suggested was likely a result of growing popularity in home-working and falling demand for transport to the office.
Sarah Byrne, HR practice editor at XpertHR, said: “The coronavirus pandemic led many employers to focus on the mental and physical health and wellbeing of their employees, and once again we see this reflected in the benefits packages offered by UK organisations.
“This is a trend that we expect to continue as employees re-evaluate their working lives after the pandemic.
“In today’s fiercely competitive labour market, a compelling benefits package can give an organisation the edge over rivals, helping it to recruit and retain talent.
“As inflation continues to outstrip pay awards, benefits that help employees to save money or improve their wellbeing have never been more important.”
