Employees struggling to see benefits of workplace health

The research, which surveyed over 1,000 UK employees and employers, showed that 67% of employers believed benefits packages had a positive impact on the wellbeing of employees.

In comparison, 31% of employees saw positive impacts for benefits packages, 27% felt their benefit package helped to prevent health issues from worsening or becoming chronic.

Liz Walker, chief operating officer, Unum, said: "Our research shows a real disconnect between the health and wellbeing support employers provide, and how it is perceived by employees.

"It's often the case that benefits are recognised and highly regarded by employers, but they struggle to communicate these effectively, leaving employees unaware or misunderstanding the true value they offer."

Despite disparities in the perceived impact, Group Risk Development (GRiD) predicted 31% of employers intend to increase employee benefits to support staff in 2025.

Walker said: "Since the Autumn Budget and the introduction of increased employer National Insurance contributions, the cost of business has skyrocketed.

"Now more than ever, it is essential that benefits align with employee needs, so that every pound spent has maximum impact."

Chancellor Rachel Reeves revealed plans to raise the National Insurance (NI) rate up to 15% for employers, whilst lowering the threshold at which they are required to pay, in her Autumn Budget in October 2024.

COVER spoke with protection leaders at the time, many of whom predicted that group protection and employee benefits would struggle in the aftermath due to rising costs for employers.

Walker concluded, she stated that benefits packages that employees don't invest in is "just money down the drain" and encouraged businesses to conduct an "open dialogue with employees" to identify benefit packages which would have the most impact.

She said: "When everyone's perceptions are aligned, and employees feel supported and understood, businesses thrive."