Private medical insurance has become the UK’s most sought-after employee benefit as workers look for greater financial support from their employers, according to new research from employee benefits technology provider Zest.
The findings suggest that rising living costs continue to influence what employees value most, with support for healthcare, retirement savings and household finances all ranking highly.
Research conducted by Opinium on behalf of Zest found that private medical insurance is the most desired workplace benefit, selected by 32% of employees. Increased employer pension contributions ranked second (28%), followed by salary sacrifice schemes (17%), wellbeing allowances (17%) and employer contributions towards home energy costs (17%).
The growing demand for financial support comes as many households continue to face pressure from inflation, rising food prices and higher energy bills following the recent increase in the energy price cap.
Employees want more from their benefits packages
The research found that two-thirds (66%) of UK employees want their employer to invest more in employee benefits, highlighting growing expectations that workplace benefits should provide meaningful financial and wellbeing support.
However, while demand is increasing, employee engagement with existing benefits remains relatively low.
Just 59% of employees say they know exactly what benefits their employer offers, while only 38% use the full range of workplace benefits available to them.
Almost half (48%) believe their current benefits package is inadequate, and fewer than half (47%) feel they receive good value from the benefits provided.
The findings suggest that improving communication about existing benefits could be just as important as introducing new ones.
Better communication could improve engagement
Joy Waugh, Employee Benefits Consultant at Zest, says employers need to ensure their benefits packages reflect the changing needs of today’s workforce.
“As living costs rise, demand for financial support has spiked. Employees are calling for greater investment in benefits packages especially support for private medical insurance and boosting retirement savings.
“Employers must ensure that they’re offering the support employees need otherwise they risk impacting morale, curbing productivity and ultimately losing key talent. In order to boost engagement, employers have to improve communication to understand the needs of their workforce and deliver personalised support that boosts value for money for both employee and employer.”
The research suggests that employers who regularly review and communicate their benefits offering may be better placed to improve employee engagement and ensure staff make full use of the support already available.
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