Auto-enrolment (AE) has prompted an increasing number of employers to overhaul their entire benefit offering, JLT Employee Benefits research reveals.
The latest quarterly 250 Club survey of the top 250 UK firms found increasing numbers recognised the added value of platforms in supporting pensions, increased employee engagement and understanding the true value of benefits packages.
Almost three out of five (59%) of respondents used a benefits platform to manage AE, with a quarter (25%) of these using a dedicated employee benefits platform.
Two thirds of employers (67%) said that AE had changed their view of how employee benefits platforms could be used, with 51% offering employees full flexible benefits. A further 12% indicated the dedicated employee benefits platform they used meant they would be introducing flexible benefits for the whole workforce in the future.
Given the cost of implementing AE and providing benefits, the majority of respondents were keen to ensure their workforce were conscious what was on offer, with 55% of organisations reporting they were driving awareness of benefits and 45% understanding their value.
The survey also looked at benefits programmes against the background of an improving UK economy. Almost one third (32%) of ancillary benefits - such as group life and private medical insurance - had been provided on top of pay rises as usual, with 10% indicating these benefits have been provided in place of pay rises.
An additional 11% provided these improvements on a voluntary basis, with a further 19% saying their organisation had considered extending coverage offered under benefits to all their employees, while 17% said coverage could be extended to only a limited number of employees.
However, employers were considerably more inclined to extend cover to all employees if they were offered a government incentive, with almost three quarters (71%) saying they would consider extending cover to all employees and 68% saying they would consider extending cover to some employees.
JLT Employee Benefits principal Nick Boyton said: "Auto-enrolment has prompted companies to think more in terms of total rewards packages, rather than just narrower salary definitions.
"As the economy gains momentum, employers are conscious they must now look at different ways of differentiating themselves in the battle for talent, rather than simply offering larger pay packages. They also actively communicate on auto-enrolment and benefits to ensure they are understood or appreciated by their employees. However, unsurprisingly many employers are only happy to do so provided they breakeven in spending terms. This is why government incentives can have a substantial influence on benefit offerings."
