Employee benefits play a vital role in helping your business recruit and retain the best talent. Numerous studies have shown that individuals want to work for an employer who understands their needs and caters for them by offering the right employee benefits.
The bottom line is it’s no longer enough to rely on remuneration alone to appeal to employees and by overlooking the importance of employee benefits, you inevitably stand to lose out in the long run.
With that in mind, we thought it would be good to go over some of the employee benefits we advise on and give you the lowdown on each.
Group life insurance, also known as Death In Service, is an employee benefit that pays a tax-free lump sum in the event of an individual dying. The sum is usually a multiple of the employee’s salary and it is paid to their dependants if the insured individual passes away.
So if the employee had a Death In Service benefit of four times their salary and they were earning £25,000 a year before taxes, the beneficiaries of the Death In Service policy would receive a lump sum of £100,000.
The Death In Service benefit is paid out providing the individual is still working for the company at the time of their death. Death In Service does not require an employee to die at work or in a work-related accident, simply that they are still employed by the company that took out the policy.
Group Income Protection (GIP) is an employee benefit that is designed to provide financial assistance to an employee if they are unable to work due to an injury or long-term illness. In such situations, state benefits only provide so much support, which is why Group Income Protection policies are highly regarded by both employers and employees alike.
[Related reading: Group Income Protection: Providing Benefits For Both Employers & Employees]
GIP provides a vital safety net to an employee and their dependants at a time when they really need it, enabling the individual to focus on getting better, instead of worrying about their finances. This inevitably means they can return to work sooner and also allows an employer to better manage absence and the long-term costs associated with it.
Furthermore, GIP often allows employees and employers to take advantage of ‘early intervention services’ from insurers. These services are designed to address any problems & concerns, and help the employee back to work quicker by intervening early on in the process.
In most cases, Group Income Protection costs as little as 1% of salary roll, making it an affordable employee benefit, as well as one that staff really value.
Private Medical Insurance (PMI) is designed to provide protection for a wide range of health scenarios. Its adaptable and flexible nature means it can be utilised by businesses from virtually every industry; there is definitely no one-size-fits-all approach.
With PMI, directors and employees gain access to prompt, high quality healthcare at a time that suits them in the event they fall ill. While the NHS does a sterling job providing for our nation’s healthcare needs, private medical insurance offers a little bit more peace of mind for both employers and employees alike.
Group Critical Illness is a highly valued employee benefit that provides financial security in the form of a one-off payment in the event an employee is diagnosed with a (specified) critical illness.
The critical illnesses that are covered vary from insurer to insurer and policy to policy, but generally include cancer, heart attack and stroke. Pre-existing conditions are not normally covered.
[Related reading: Why SMEs Should Be Offering Private Medical Cover To Their Employees]
If you would like more information about any of the employee benefits mentioned above, or would like to discuss specific benefit options for your business, contact us today.