Employee healthcare costs have risen by over 50% in the last five years, according to Aon Hewitt's Benefits and Trends Survey.
The research, involving 480 UK employers, found 69% want to reduce costs, and 67% have experienced rising healthcare premiums. Nearly one-third of employers plan to revise their healthcare perks to cut costs.
The survey found healthcare benefits are growing in importance among employers, with 34% saying promoting employee health is crucial for increasing wellbeing at work, 27% recognising healthcare benefits’ role in retention, and 25% highlighting the significance of healthcare perks in recruitment.
Colin Bullen, UK head of health consulting at Aon Hewitt, said: “There is clear evidence employers recognise the value of investing in employees’ health. That comes through in a variety of messages. The key one is that the main reason they have a private medical insurance (PMI) arrangement is to help employees back to work in the shortest space of time.
“Employers are being battered by ongoing rising premiums, with costs going up regularly by 8% to 10%."