- "Increasing cost of benefits within tight budgets" ranks
second, followed by "communication" in third place
- Employers are focusing on creating fair and equal workplaces to
attract and retain talent
- Menopause remains a hidden workplace taboo - only around one in
five (22.8%) have formal policies in place for women experiencing
symptoms
- Two in five (43.8%) organisations fail to provide any form of
financial advice amidst cost of living crisis
LONDON, Nov. 17, 2022 /PRNewswire/ -- New research from
Gallagher, a global leader in insurance brokerage, risk management,
and consulting services, reveals that "appealing to a diverse
workforce with different preferences" is the top challenge U.K.
organisations are facing. "Increasing cost of benefits within tight
budgets" ranks second, followed by "communication" in third place.
The top three benefits challenges identified have remained the same
the last three years - although this year, first and second have
swapped places - putting "appealing to a diverse workforce" on
top.
Of those employers who are planning changes, 79.1% will be
enhancing benefits, an increase compared to last year (70.7%). Only
5.2% are looking to remove benefits, even in these difficult
cost-crippling times - which shows that benefits are a valued part
of the employment package. Data also reveals that 23.5% are going
to change their delivery method and the same percentage are looking
into changing their benefit provider.
Creating a fairer and more equal
organisation
The research revealed the majority of employers haven't
implemented the right policies and tools needed to support women in
the workplace who are experiencing the menopause – with only around
one in five (22.8%) firms with formal policies in place. These
findings reinforce the need to treat menopause like any other
important workplace topic such as bullying. Where support for women
during menopause exists, the type of help being offered ranges from
flexible working policies (61.5%), employee forums/support groups
(53.8%) and training for managers (42.3%). What's clear is that if
we want to create diverse and inclusive workplaces, employers need
to do more to break down the stigma surrounding menopause.
Steve Threader, Managing Director, Reward and Benefit Consulting
at Gallagher's Benefits and HR Consulting Division in the U.K.,
said: "The connection between employee wellbeing and organisational
wellbeing has become more significant. It's encouraging to see that
the desire to create flexibility is trending across the country,
with 47.8% of employers wanting to improve it, in order to extend
individual choice and to better support those who need it the
most."
Enhancing flexibility and diversity within organisations makes
it easier to address employees' needs as individuals and creates a
greater Employee Value Proposition (EVP). For example,
organisations are responding by providing additional
family-friendly benefits so parents can opt to raise their children
how they wish to, or grow their families in different ways.
Employees' family lifestyle choices are no longer a barrier to them
receiving parental benefits. For example, 46.5% of employers offer
enhanced shared parental leave on the same basis as maternity, an
increase from 2021.
The rise in equal practices is transforming benefit plans, and
we can expect to see firms using data to leverage communication
tools more effectively and adopting best practices to compete for
and retain talent - whilst strengthening their culture.
Keeping pace in light of tight
budgets
The report findings come as economic growth slows and
uncertainty soars – meaning this could be the biggest threat to
employees' mental health we've seen in recent years, even in light
of the pandemic. In view of the large number of people being
impacted by the cost of living squeeze, we were surprised that
43.8% of firms are failing to provide any form of financial
education or advice to employees. The decision by the U.K.
Government to cap domestic energy bills is positive, but are
there also steps that employers can take to help employees navigate
the months ahead as the cost of living crisis deepens?
The most forward-looking organisations are assisting their
people to plan their retirement saving efficiently, and 23.2% say
they are now offering access to an online solution (compared to
just 20.9% last year). In addition, individual advice has slightly
increased to 22.3% from 21.8% in 2021.
The Bank of England's rise in
interest rates to 3% is another blow to U.K. households already
reeling from record levels of inflation.
Just under two months ago, Gallagher's research2
revealed the stark reality of the U.K. spiraling towards a national
debt crisis. Approximately one quarter of U.K. adults can't afford
to pay their debt payments some months or not at all. The bleakest
numbers are for the under 35s - where 39% can't pay some months and
in London, where approximately
one-third are unable to pay off some of their debts. This is also a
huge concern given the cost of borrowing is rising
aggressively.
"Recognising that inflation-busting pay rises are simply not
possible for most organisations, there are other ways they can help
to alleviate the stress and worry facing employees who are
concerned about debt and their personal finances," said Threader.
"Financial wellbeing is ultimately about employees feeling that
they have confidence, control and capacity in their finances.
Companies providing money-saving benefits and practical tools to
support their people – while communicating them effectively – will
help employees through the cost-of-living crisis and those
struggling with debt."
Lack of internal communication can
be a costly mistake
Gallagher's data shows 73% of organisations are looking to
improve internal communication – but as many as two thirds (68.6%)
do not have a pre-defined benefits communication budget. Among
those surveyed who had a communication budget, most allocated less
than £10,000 per year. The use of a discount portal is one of the
top (33.9%) methods used to communicate, followed by 17% using
mental health/wellbeing apps.
"Although internal communication seems to be overlooked, our
research shows 73% of the leaders surveyed realise its importance
and the overall positive effect it has on the company - but they
need to invest their time and money in its development properly.
After all, an engaged workforce is happier, more productive and has
a better understanding of the organisation's strategy," said
Threader. "Communication isn't just talking, it's about connecting
with individuals, bringing everyone with you on the same journey,
so that the team works well together to deliver commercial
success."
NOTE TO EDITOR
1. Research conducted by Gallagher, 26th May –
15th July 2022, amongst
233 U.K. organisations.
2. Research conducted by Opinium Research on behalf of Gallagher,
15th July – 19th July 2022, amongst a
nationally representative sample of 2,000 U.K. adults.
ABOUT GALLAGHER
Arthur J. Gallagher & Co.
(NYSE:AJG), a global insurance brokerage, risk management and
consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides
these services in approximately 130 countries around the world
through its owned operations and a network of correspondent brokers
and consultants.
MEDIA ENQUIRIES
For all media enquiries please contact Gallagher, using the
details below:
Louisa Best
Senior Marketing Manager, Gallagher
Tel: 07873 628 531
Email: louisa_best@ajg.com
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