Recruitment and retention are among the main reasons employers offer group income protection (GIP) to their staff, research shows.
Equally important to businesses is using the benefit to help them meet their obligation to look after staff and families, according to the survey from industry body Group Risk Development (GRiD).
Other reasons include using the benefit to help manage long-term absence and tax-efficiency.
A quarter of businesses believe they recoup the cost of the benefit in improved productivity and staff morale.
However, the top reason employers gave for offering GIP to their workforce is that they believe Statutory Sick Pay is insufficient to support people unable to work.
Katharine Moxham (pictured), spokesperson for GRiD, said GIP is “the jewel in the crown” of employee benefits, offering financial support for employees unable to work through sickness or injury through to access to specialists to support them emotionally.
“We’re pleased to see that many are making the most of the benefit, but we’d like to see better utilisation. This is a benefit that’s designed to be regularly accessed by all – not simply left on the shelf for an emergency,” she added.