National intermediary Partners & is today warning employers not to take �knee-jerk� spending decisions in response to the Bank of England�s prediction of a five-quarter recession.
Steve Herbert, Wellbeing and Benefits Director at Partners&, said: �We completely understand � and fully accept � that faced with such grim economic predictions many employers will need to adjust their spending commitments to ride-out the recession ahead.� Yet our very real concern is that some employee benefits offerings might be surrendered as part of any such review.� We genuinely believe that this would be a mistake.�
�Partners& is also keen to remind employers that the economic downturn is far from the only significant business challenge to be faced.
Covid-19 remains a very real risk, with numbers remaining stubbornly high and further mutations possible in the winter months ahead.� Long Covid continues to be a challenge too, with the latest Office for National Statistics figures suggesting that 761,000 people in the UK have experienced such conditions for a year or longer, of which 380,000 had suffered for over two years.
Other employee health concerns include the reality that a short-staffed NHS remains overwhelmed is many areas and may not be able to provide the rapid support and treatments that employees and employers would usually expect.� Another worry is that the mental health of many workers remains fragile, a situation clearly not helped by the acute pressures and stresses of the cost-of-living crisis.
Herbert continued: �As we witnessed during the worst of the Covid-19 crisis, employee benefit insurances and protections are often at their most valuable, important, and useful when times are tough, and when employers have limited financial options available to support their workers.� A good employee benefits offering should offer important protections, useful support features, and of course offer a viable route towards full health and a speedy return to work.�
Partners& also highlight the continuing concerns around recruitment and retention in the United Kingdom. This issue remains a very real headwind for employers, and whilst a recession may well result in an increase in unemployment, the UK could still face candidate shortages and skills gaps next year.
Herbert concluded: �The reality is that 2023 looks set to be a really difficult year on so many levels.� We are working with clients already to ensure that they are equipped to weather the coming economic storm and build resilience into their business so that they can be in a position to bounce-back quickly once things eventually improve.�
�Now, more than ever, employers will need to retain their best employees, whilst also attracting what new talent is available.� Employers will also need to do everything they can to keep their workforce fit, healthy, and productive.��
�Partners& is encouraging organisations of all sizes to revisit their employee benefits package to ensure that their offering is robust, cover or support is universally available, and that any value-added tools are identified, promoted, and used by employees in the difficult months ahead.
