Private Medical Insurance named as top employee benefit

The exact make-up of employee benefits packages certainly differs between the needs and demands of individual employees. But what is the most popular benefit amongst UK employees?

Once again, private medical insurance (PMI) is the most important company perk that employees are looking for from their employer.

A third of employees named PMI as their most in-demand benefit, ahead of other well-known perks such as increased pension contributions, employer support on energy bills and a wellbeing allowance.

Given rising NHS waiting times – over 7.6 million people are currently waiting for treatment whilst 300,000 people have been on the list for more than 12 months – it’s perhaps no surprise that employees are prioritising access to private healthcare from the benefits packages.

In April 2024, one million people were waiting to access mental health services on the NHS. The challenges faced by the NHS was also recently highlighted in government’s review of its performance by Lord Darzi. The report was full of sobering figures, perhaps none more so than the 100,000 infants who waited over six hours in A&E in England last year or the 800,000 children and young people waiting for treatment.

Many people have reached the point where they are planning to fork out for private healthcare rather than rely on NHS services. Research from Joseph Rowntree Foundation indicates that many people are setting aside around £200 per year for routine services to avoid NHS delays.

This all paints a clear picture for employers – some of the most effective support they can provide employees is through offering PMI. Three quarters of HR professionals believe that it’s now a necessity in the workplace – however our recent research shows that just 40% of businesses are offering this to employees.

Greater numbers of employers need to introduce PMI into their benefits packages – not doing so risks losing out on key talent as employees may be forced to turn elsewhere.

Greater emphasis also needs to be placed on effectively communicating what is on offer through benefits platforms. Our research highlighted that many employees remain totally unaware that they may have access to private healthcare – organisations need to ensure that all employees understand all the benefits available to them.

This will boost engagement, value for money and the employee experience. Partnering with the right benefits technology provider is vital to ensuring that employers can adapt to the ever-changing needs of their workforce and offering the support they are calling for.

Findings were conducted by independent research agency Opinium which surveyed 2,000 adults weighted to be nationally representative between 28^th – 30^th August 2024 and 500 HR decision makers between 21^st – 30^th August 2024.