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MORE THAN THREE-QUARTERS OF SMES PLAN OVERHAUL OF EMPLOYEE BENEFITS TO COMBAT ECONOMIC PRESSURES
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SMES ’ FOCUS ON REVIEWING BENEFITS , ESPECIALLY THE POTENTIAL INCLUSION OF PREVENTATIVE HEALTH AND WELLBEING SOLUTIONS , IS PARTICULARLY TIMELY .
VER THREE-QUARTERS ( 77 %)
O of UK small- and mediumsized enterprises ( SMEs ) surveyed plan to revamp their employee benefits packages to attract and retain top talent , address workforce challenges and tackle economic pressures , according to Employee Benefit Trends in UK SMEs , a new report from Howden Employee Benefits , in partnership with YouGov .
SMEs ’ focus on reviewing benefits , especially the potential inclusion of preventative health and wellbeing solutions , is particularly timely . Sickness absence rates have reached a 15-year high , with 104.9 million work days lost in 2023 due to long-term health conditions .
Key findings :
• Benefits gaps : While 85 % of SMEs offer some form of workplace pension , the findings suggest that 15 % are failing to comply with pension legislation , exposing them to potential fines . Only 53 % provide private medical insurance ( PMI ) and 49 % offer mental health support .
• Economic strain : Half of SMEs report financial challenges as the biggest challenge impacting the workforce currently , with the cost of living crisis and rise in employer National Insurance contributions ( NICs ) announced in the Budget adding to these strains . Salary sacrifice schemes , which allow employers to save 15 % on NICs for pension contributions , are a costeffective and tax efficient solution and could address these challenges .
• Flexible options on the rise : 47 % of SMEs are prioritising flexible benefits , giving employees more choice and the ability to select and customise packages to suit their individual needs – an increasingly vital factor for multigenerational workforces .
What benefit changes are SMEs planning ?
• Healthcare and wellbeing : 46 % are expanding mental health support , and 43 % are boosting access to PMI to provide faster access to healthcare solutions .
• Pension improvements : 40 % are enhancing pension contributions to strengthen employee retirement security and to help address current pension inadequacies .
18 Intelligent SME . tech