Around half (51%) of employer respondents plan to review their employee benefits package this year, according to research by Jelf Employee Benefits.
Its survey of 250 medium and large organisations also found that 24% cite the changes to salary sacrifice as the legislative change that is most likely to trigger a review of employee benefits within their organisation this year.
The research also found:
- 7% of respondents do not plan to review their employee benefits package this year, 35% of respondents might do so, and 6% do not know.
- 14% of respondents think the introduction of tax-free childcare is most likely to cause an employee benefits review within their organisation this year.
- Almost a quarter (24%) of respondents believe the three-year pensions re-enrolment review is most likely to result in an employee benefits review.
- 8% of respondents feel that the insurance premium tax (IPT) increase will be the most likely reason why their organisation undertakes an employee benefits review this year, and 4% cite the launch of the Lifetime individual savings account (Lisa) as the legislative change most likely to lead to a benefits review.
Steve Herbert (pictured), head of benefits strategy at Jelf Employee Benefits, said: “Despite the political uncertainties of the past few months, the reality is that there is already much legislation-led change in progress that impacts, directly or otherwise, the overall employee benefits offerings of so many organisations. It is therefore important that employers are aware of these changes and adapt their offerings accordingly.
“The reality is that the UK’s productivity figures are worse than many of our major competitors. If British business is to continue to thrive, then this measure will need to be improved. A robust and well thought-through employee benefits offering can help employers manage and improve absence figures, succession planning and importantly employee engagement. All these are key components in improving productivity, and we would therefore strongly encourage employers to undertake a full benefits review to ensure their offering meets these objectives.”