The Big Shift in Voluntary Benefits Market
Although the UK voluntary benefits market has been stable these years, now it’s changing. There is a big shift in the market compared to 5 years ago and there are sever drivers for this change.
First, sites like Wowcher, LivingSocial, Yipit and Groupon become so popular and employees are now bombarded with discounts outside the workplace. We will add affinity schemes from banks, airlines, sports clubs and so on.
Secondly, no one size fits all in 2015 and beyond. Employers what to diversify the benefits packages and go beyond the traditional voluntary benefits schemes. Moreover, the Childcare Voucher will start to disappear in 2017 so this popular voluntary benefit will have died out.
What is not changed yet?
Reward Gateway founder and CEO Glenn Elliott says: “The market has changed vastly in nine years. In 2007 when Reward Gateway started, you could barely put a sheet of paper between any employee discount supplier. They all had between 80 and 100 benefits and they all had the same benefits.”
In 2008, cashback on employee discount cards was introduced and it is now commonplace. Reloadable store cards and e-vouchers are also on most offerings.
“One thing that still holds true is that there are still things in voluntary benefits programs that are difficult – if not impossible – to get outside the closed user group, such as shopping offers. The discounts we get on reloadable shopping cards are not something that we would expect to become more widely available in the marketplace,” says Personal Group’s Walker.
Read the full business case at Workplace Savings and Benefits.