Its nationwide study of firms employing between 50 and 300 staff – which make up around 34,000 businesses employing 3.3 million people, found that 18,000 (53%) will increase the benefits they offer staff over the next two years.
Around 2,400 – the equivalent of 7% - will introduce benefits for the first time while another 15,600 (46%) will expand the benefits they offer. Around 14% of firms plan to expand the benefits on offer to staff substantially.
A key reason for expanding benefits identified by the study is that SMEs say they struggle to attract and retain staff in the face of competition from bigger firms – nearly half (49%) of companies say recruitment and retention are major issues for them.
More than one in four SMEs ( 27%) admit their benefits package is not as strong as bigger firms, while one in four (25%) say they cannot afford to pay the salaries prospective employees expect.
MetLife’s research found that SMEs are increasingly looking for support from Employee Benefit Consultants to help them with recruitment and retention – around 46% of firms say they will look for support with strategies to attract talent over the next 12 months, and 41% want help on retention strategies. When MetLife asked the question last year2 only 36% were looking for help with recruitment and 34% with retention.
Adrian Matthews, Employee Benefits Director, MetLife UK said: “Employees increasingly recognise the value of benefits and SMEs are clearly looking to respond by enhancing what they offer staff.
“With one in four employers saying they can’t afford to pay the salaries prospective employees expect, I would say to them that they should not be deterred. Salary can be a blunt and expensive instrument and we know from our own Employee Benefit Trends Study in 2017 that in fact 55% of employees highly value the benefits on offer and that 34% would be persuaded to stay in their job if their benefits were enhanced. That is a positive for SMEs which feel they can’t compete on salary.
“A well-designed benefits package can play a major role in supporting SMEs’ recruitment and retention strategies and need not prove as expensive as many firms may believe. The cost to companies of Group Life and Group Income Protection can for some be as low as 0.5% of salary for income protection and 0.2% of salary for life cover.”
“The role of the adviser is key as SMEs are telling us they want support in identifying the benefits that would be most valued by their staff: this is good news for Employee Benefits Consultants and other advisers.”
MetLife’s study found that the majority of SME owners and managers believe they have a duty to provide benefits beyond salary and pension – around 69% say their firm should offer more than salary and pension to employees.
MetLife UK is established as the UK’s third largest Group Life provider by number of schemes it insures4 and the sixth largest Group Income Protection provider by in-force premium.
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