Private medical insurance is the most important company perk that employees look for in their benefits package, new research from employee benefits technology provider, Zest, has found.
A third (33%) of employees in the UK ranked private medical insurance as the most in-demand employee benefit, ahead of other well-known perks such as increased pension contributions (32%), employer support on energy bills (24%) and a wellbeing allowance (20%).
Four in ten (42%) employees aged over 55 named private medical insurance as their top benefit. Similarly, women were more likely to prioritise private healthcare support – 37% of female employees claimed this was the most important benefit compared to 29% of men.
The latest NHS figures show that over 7.6m people are currently on the waiting list across England whilst around 300,000 people have waited for more than 12 months. In April 2024, one million people were waiting to access mental health services on the NHS.
The research follows the recent government review of NHS performance by Lord Darzi highlighting the challenges faced by the NHS and revealing that over 100,000 infants waited over six hours in A&E in England last year, while 800,000 children and young people are on NHS waiting lists for hospital treatments*.
Research from Joseph Rowntree Foundation indicates that most people in the UK now believe they will have to spend their own money on private healthcare – with many setting aside around £200 per year for routine services to avoid NHS delays**.
Despite the importance employees place on private medical insurance, just 15% of employees said this was available through their company benefits package.
However, the research actually reveals that four in ten (40%) of businesses are offering this to employees – clearly, this lack of awareness around the options available suggests that employers need to improve how they communicate with employees and enhance engagement with benefits packages.
But given three quarters (73%) of HR professionals believe private medical insurance is now a necessity in the workplace, there is also considerable work to be done by employers to further integrate this support into employee benefits packages.
Matt Russell, CEO at Zest, said: “With NHS waiting times on the rise employers are seeing increased demand for private healthcare insurance.
“Greater numbers of employers need to introduce private medical insurance into their benefits packages – not doing so risks losing out on key talent as employees may be forced to turn elsewhere.
“The research also highlighted that many employees remain totally unaware that they may have access to private healthcare – organisations need to ensure that they are effectively communicating their benefits offering to boost engagement and ensuring employees aren’t losing out.”
Zest is an employee benefits technology company with over 500 customers, including Hargreaves Lansdown, Taylor Wimpey, Yahoo and Travis Perkins, serving over 300,000 employees. Its multi award-winning platform offers a fresh approach to truly flexible employee benefits.
Employers can use Zest’s ROI Calculator to learn more about potential savings on employer NI contributions as well as approaches to reduce talent loss and boost productivity: https://www.zestbenefits.com/roi-calculator/
