Employee Benefits
Expert perspective: Voluntary health benefits are experiencing a surge in popularity in the UK
13-11-2024
Queues for certain healthcare procedures and support are at record highs, and the focus that we’re seeing on health-related employee benefits is a direct consequence of this. As is the way in which people are now giving far more consideration to ‘what if?’ scenarios on the back of the pandemic. As a result of increased demand, private medical insurance costs are now averaging around £1,200 per employee per year. And it’s likely that these costs will continue to rise without intervention.
The benefits landscape in the UK is shifting as public health services come under strain and companies play an increasingly paternalistic role in supporting employees…
How employers are adapting to health demands in the workplace
Encouragingly, growing numbers of employers are now providing employees with access to private healthcare through voluntary, self-funded schemes through a benefits marketplace. This means that employees who are not eligible for employer-funded medical insurance can still have some level of access to private medical care at much lower prices than they would otherwise get.
Alongside this, employers are investing in two other key health-related benefits. Firstly, health assessments, which offer employees a comprehensive health check and encourage them to take a more proactive approach to managing their health. And secondly, healthcare cash plans which can make a big difference to employees.
Across all health benefits, employers can play their part in helping employees, firstly by sourcing the best possible terms, and secondly by signposting employees towards the most appropriate support and services. Knowledge is key, and many employers are now using a benefits hub or platform to communicate with employees and ensure they have access to all of the information they need.
Employers are increasingly educating and motivating people to take a more ongoing, proactive approach to managing their health. Earlier diagnosis and intervention are essential to improve population health and wellbeing and drive down costs across the healthcare industry. By offering a range of funded and voluntary health benefits alongside a comprehensive wellbeing proposition which encourages healthy behaviours, employers can provide the support people need, while also managing costs.
Taking a proactive approach to employee health
As public health services continue to experience unprecedented strain, employers have a unique opportunity to play a proactive role in supporting employee health and wellbeing. By offering access to a mix of funded and voluntary benefits (such as private healthcare schemes, health assessments, and cash plans), employers not only help meet the immediate health needs of their workforce but also promote a culture of preventative care. In doing so, companies foster a healthier, more resilient workforce while helping to manage healthcare costs in the long run.
For more practical advice and learnings on all things reward and benefits, download our report: Navigating trends from our Big Benefits Report, where six Benefex experts share their perspectives.
Rebecca Rann
Head of Health, Benefex