One-third of respondents to increase value of benefits package in 2012

Over one-third (41%) of employers surveyed about their current benefits package expect to increase its value in 2012, according to research by industry body Group Risk Development (Grid).

In the past 12 months, only 16% of employers added to the value of their benefits package.

The research found that the average annual cost of employee benefit packages for employers, excluding pensions, is 2.19% of payroll.

It also found that 78% of respondents plan to introduce group risk benefits alongside auto-enrolment. Among organisations that do not currently offer group risk benefits, 78% would consider introducing group critical illness, 68% would consider introducing group income protection, and 53% said they would consider group life insurance.

Katherine Moxham, spokesperson for Grid, said: “Employers will be facing the introduction of auto-enrolment with varying degrees of confidence or trepidation.

“It is very positive to see that employers are considering further investment in their benefits package alongside auto-enrolment, and specifically that they are acknowledging the major role protection benefits can play in managing absence and fostering employee wellbeing.”

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