UK: Employees not reaping the benefits

Hardworking Brits are urging businesses to shake up their employment benefit schemes, according to new research out today.

While almost half of full-time employees admit they’d feel more loyal to their employer if they were offered health- related benefits, three quarters say they don’t receive any benefits at all from their current employer.

Norwich Union Healthcare’s ‘Well-being at Work’ study also reveals that companies could be wasting over Ł1,500 million (fifteen hundred million GBP) on benefits that are out of step with their employees’ needs.

The research amongst 1,000 companies* shows that many are offering traditional perks such as subsidised canteens and free medicals, when in fact their staff are looking for 21st century benefits that fit in with their busy lifestyles.

Almost a third say they’d like a personal fitness trainer or on- site GP as part of their employment package. And a quarter would like their company to introduce duvet days – where staff are granted a last minute ‘no questions asked’ day off work.

The most common health-related perks currently being offered by bosses are free fresh fruit in the office, a working from home policy and wellness rooms to allow staff to take time out or a break during work hours.

The ‘Well-being at Work’ study reveals that the top six health related benefits staff would like to see introduced are:

1. Personal fitness trainer
2. On-site GP services
3. Duvet days
4. Personal grooming services (ie hairdressing)
5. Staff concierge services
6. Life coaching/mentor

Norwich Union’s research amongst both employers and workers also showed:

• 44 per cent of bosses believe that staff retention and performance has improved due to the benefits package they offer and say it’s the top reason they offer perks
• More than three in five people believe that fewer companies will offer health related benefits due to the economic downturn
• Employers in Scotland and the North are the most generous with employment benefits spending an average of Ł3,141** on their employees. Companies in the South spend the least - Ł1,079**.

Dr Doug Wright, clinical development manager for Norwich Union Healthcare, said: “Today’s workplace is very different from that of 20 years ago and employers need to understand the different pressures their staff are faced wit

“It’s even more difficult for working parents to cope with the stresses of employment, with British parents the worst off in Europe emotionally and financially - maternity pay has fallen in real terms and is now less than half the European average.

“Our research shows that providing the health-related benefits and perks that employees want can not only play a key role in staff retention and happiness, but also dramatically improve their quality of life.”

Mike Emmott, spokesperson for the Chartered Institute of Personnel Development, added: “Organisations increasingly faced with stressed staff and high turnover rates, or struggling to maintain morale and productivity, are realising the importance of health-related benefits in improving the effectiveness of their employees.

“Employers who take the time to find out the kinds of benefits their employees want will reap the rewards in the form of improved performance and motivation, more effective recruitment, reduced costs of stress and reduced absenteeism. Few companies will be able to afford not to make them a priority.”

*Companies with less than 50 employees
**Money spent per company on health-related benefits per year

Press contact:
Matthew Buchanan or Anja Kueppers at QBO on 020 7379 0304 or Louise Zucchi at Norwich Union on 08703 66 68 60 or 07860 203 466

Notes to editors

• Norwich Union Healthcare commissioned research amongst 101 small business owners and 582 working adults in January and February 2002.
• Norwich Union Healthcare is the healthcare arm of Norwich Union and provides a range of private medical insurance and income protection products to around 750,000 customers. It is one of the largest providers of income protection and private medical insurance in the UK.
• Norwich Union is the UK's largest insurer offering a comprehensive range of long-term savings and general insurance products.
• Member of the General Insurance Standards Council
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