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• Lifestyle and financial perks : 38 % are adding gym memberships or lifestyle discounts , while 36 % are exploring critical illness insurance and 31 % are considering group life assurance .

Recruitment challenges are driving change

Twenty-nine percent of SMEs admit that recruitment and retention are significant challenges and offering competitive benefits is now essential to retain top talent . The report also highlights that jobseekers prioritise pensions , healthcare and mental health support when choosing employers . This suggests that businesses are listening to the wants and needs of current and future employees with SMEs most likely to be planning changes to these three benefits .

Cheryl Brennan , Managing Director , Howden Employee Benefits , said : “ SMEs are navigating a perfect storm of rising costs , recruitment pressures and increased employee demand for healthcare , particularly mental health support . However , the research shows that many businesses understand that offering comprehensive benefits can be a powerful tool to improve employee wellbeing , reduce absenteeism , drive productivity and strengthen recruitment and retention of talent . “ Now that SMEs face higher Employer NIC and increased tax bills further to the recent budget , they can address both these challenges and the UK ’ s retirement shortfall by implementing salary sacrifice , if they don ’ t already . Employers can save 15 % on Employer NICs on employees ’ pension contributions , helping offset some additional costs whilst making a positive contribution to their employees ’ retirement outcomes . Investing in the right benefits can lay the foundation for a more productive and resilient workforce .”

Mark Fosh , Executive Director of SME at Howden Employee Benefits , said : “ With 5.6 million SMEs at the heart of the UK economy , their success is vital . Despite rising operational costs and NIC , SMEs still have practical options to address these challenges .

“ By adopting salary sacrifice schemes and working with an employee benefits consultant to review and optimise their benefits packages , businesses can ensure they ’ re getting the best value for money while accessing additional Value Added services . These steps can provide immediate financial relief , result in a better experience for employees and build a stronger , more engaged workforce .” �

SMES ARE NAVIGATING A PERFECT STORM OF RISING COSTS , RECRUITMENT PRESSURES AND INCREASED EMPLOYEE DEMAND FOR HEALTHCARE , PARTICULARLY MENTAL HEALTH SUPPORT .

Intelligent SME . tech

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