Howden Employee Benefits, part of the global insurance intermediary group Howden, has released a new report titled Employee Benefits and Wellbeing in Scotland. Based on a survey of over 100 HR professionals and business leaders, the report exposes shortcomings in employee benefits and mental health support, and a disconnect between employer offerings and employee needs.
Health and Wellbeing:
With NHS waiting lists in Scotland at a record highi worsening mental health, an ageing population, and a rise in chronic illnesses, employees are increasingly relying on their employers for support. However, the research found many businesses are not meeting these demands:
- Private Medical Insurance (PMI): Only 1 in 5 companies offer PMI, which is crucial for providing timely healthcare access, reducing NHS strain, and boosting employee productivity and satisfaction.
- Mental health support: 76% of companies lack sufficient mental health support, with only 23% offering comprehensive services. This leaves a substantial portion of the workforce without the support they need.
- Need for improvement: 36% acknowledged the need for enhanced mental health initiatives, highlighting growing awareness and need for action.
Saba Haran, Employee Benefits Director Scotland Howden, commented: "With ongoing pressures on the NHS and a national cost of living crisis, prioritising employee health and wellbeing has never been more important. Employers need to adopt a strategic and employee-centric approach to their benefits provision and review their existing benefits to they meet their employees’ needs and deliver business value.”
Employee benefits and pensions
The report also revealed a disconnect between employers and employees when it comes to understanding and delivering valued benefits,
- Lack of insight: 67% of businesses are uncertain which employee benefits are most valued, reflecting a lack of data-driven strategies.
- Pension concerns: 46% of employers doubt the effectiveness of their workplace pension schemes, with 26% concerned that employees are not saving enough for retirement.
- Missed opportunities: 41% of businesses do not offer salary exchange for pension contributions, missing a tax-efficient opportunity to enhance benefits affordably.
The cost-of-living challenges
The cost-of-living crisis continues to squeeze household budgets, yet the report revealed employees receive mixed levels of support from employers:
• While 28% of businesses are offering discount sites to help employees manage daily expenses, only 6% identified financial wellbeing programmes as a critical area for improvement.
Affordable solutions for employers
Haran added: “With 67% of businesses uncertain which benefits are most valued by employees, better data is vital to understand the impact of benefits and the best allocation of budgets. Equally, while pensions are the most valued employee benefit, they need more focus. Greater pensions engagement and education could help employees to maximise their pension savings and have a more comfortable retirement. Also, given the rising mental health concerns and economic pressures, prioritising comprehensive health and wellbeing support is now paramount.”
She also highlighted cost-effective strategies for businesses looking to enhance their benefits packages: "Businesses struggling financially to increase benefits can consider affordable ways to support employees. Prioritising virtual GPs or health cash plan schemes can offer cost-effective solutions for addressing employees’ healthcare needs without breaking the bank. Also, many are overlooking the advantages of salary exchange, a tax-efficient method to boost pension contributions. Employees also need to be aware of the value-added benefits already available within their existing policies and use them.
As employee benefits consultants, we can help companies navigate these challenges and seize the opportunity to align benefits with employee expectations and the demands of the market to create a healthy and productive workplace environment that attracts and retains talented employees.”
The full report offers detailed insights into the current state of employee benefits and wellbeing in Scotland and provides strategic recommendations for businesses looking to bridge the gap between employee needs and employer offerings.
To read the report in full, click here.
With a dedicated employee benefits team in Scotland, Howden is uniquely placed to empower employers with tailored insights and strategies that resonate with their specific demographics. With market knowledge and access to best-in-class solutions, Howden can help employers in Scotland design bespoke health and wellbeing strategies aligned to meet the needs of their individual business, employees, and budget. For more information, please visit www.howdengroup.co.uk.
