Employee benefits market still on the up - GRiD

Only 16% of employers have failed to at least maintain the value of their employee benefits package through the recession, according to industry body Group Risk Development (GRiD).

While 84% of companies have maintained benefit levels over the past 12 months, the second annual employer research study found more than a third (37%) are even considering increasing their level of expenditure in the near future.

The survey of 500 employers found 41% currently provide life cover, income protection or critical illness cover to their workforce, compared with 37% the same time in 2009.

Katharine Moxham, spokesperson for GRiD said: "Often, when difficult trading conditions mean that salary increases are put on hold, the attractiveness of an employer's benefit package can make all the difference when seeking to attract and retain the very best candidates for an organisation. I would encourage businesses to take positive steps to create a healthy, modern and supportive working culture, especially at this difficult time."

However, smaller companies still struggle, with 32.6% of firms with fewer than 20 employees claiming group risk protection benefits (life assurance, income protection and critical illness cover) are too expensive.

When asked why they offered these benefits, 52% of employers with group risk benefits said they considered group risk an essential part of their core benefits package for employees, with 37% believing that it helped recruit and retain key personnel. 25% also recognised that they recoup benefit spend through increased productivity and staff morale.