The new year brings with it a flood of predictions for the months ahead. For their part, GRiD, the industry body for the group risk sector, foresee that employee benefits will come under increased scrutiny in 2025 as the cumulative effect of pressures from 2024’s Autumn Budget start to bite.
They warn that the National Insurance (NI) employer tax rise and the increase in the minimum wage must be factored into budgets from April 2025, which means that all areas of expenditure, including employee benefits, will be closely monitored.
Value on investment
GRiD points out that as a consequence, employers will demand more value from their employee benefits spend. They explain that where benefits clearly demonstrate good utilisation rates, staff engagement, and an obvious benefit to the business itself, they will be retained – or introduced. However the opposite is also true: benefits will be at risk when they are not understood, utilised or can clearly show that they provide value.
Katharine Moxham, spokesperson for GRiD, said: “We would urge all employers to ensure they fully understand the benefits that they currently offer, to monitor their use, and ensure employees are aware of the breadth and depth of support available”.
A data-driven future
GRiD also predicts that benefits which clearly offer value will be some of the most sought-after in 2025. They suggest (not surprisingly as they represent group risk) that this will include group risk benefits such as employer-sponsored life assurance, income protection and critical illness. Explaining that these are not only are they valued for the financial payment to employees in times of need, but also for the increasingly enhanced embedded benefits which support a return to work, prevention, and early intervention across physical, mental and financial health.
Katharine Moxham: “HR teams should start to gather the data they need now, to put forward the business case for the benefits that support the welfare of staff. They need to show not only uptake of benefits, but also the positive impact on the business itself. However, this also represents a great opportunity for the HR department to demonstrate its accountability and commerciality.”
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