Better engagement with employees of SME clients about group risk benefits can go a long way to strengthen relationships between advisers and their clients.
Minesh Patel, a financial planner with EA Financial Solutions, claims that with competition across most business sectors focusing minds on how to retain staff, improving employee benefits is a good way to reward staff, beyond pay increases and bonuses.
And it is no longer a requisite for big companies.
Mr Patel said employee benefits can help even smaller businesses stand out in a competitive market.
He said: “Advisers can help their SME clients to be more competitive by helping them to consider workplace benefit programmes for their employees.”
Employers may promise certain benefits to employees as part of the contract of employment, but rather than bear all of this risk themselves, many may choose to take out group risk insurance policies to cover some or all of their liability for such events as death benefits, long-term sick pay and critical illness benefits.
Mr Patel said: “I do workshops with the SME’s employees to find out what they think of the benefits. Advisers are more likely to speak to company employees because they recognise that more dialogue is needed with employees.”
Patel said helping SMEs retain their staff can “make the relationship between the adviser and employer stickier”.
Patel’s comments chime with a recent report from GRiD, the industry body for group risk, on the seven crucial conversations employee benefits advisers should be having with their SME clients about group risk products.
GRiD said there is no reason why every size of business cannot provide some kind of group risk financial protection for its staff.
As a result, advisers should be talking to SMEs about which group risk products are relevant to their business.
The report said: “There are a huge range of supportive services that come with a group risk policy. Insurers are constantly developing new ones, so it’s especially important for SMEs to know what group risk can do for their organisation.”
Advisers should also be talking about the longevity of a recommended product.
GRiD said: “If all parties have a good grasp of how the organisation’s employee demographics may develop, advisers will be able to select the product structure that is right for now and for the foreseeable future.”
The lifecycle of a typical employee; how they are recruited, how long they might stay, is another key topic for discussion.
When talking about health, wellbeing, safety and other benefits, advisers also need to speak with SMEs about health and safety procedures they provide. This could give underwriters a more positive view, resulting in more favourable pricing.
GRiD added: “Group risk support is also moving forward to encourage better health behaviours, for example giving access to GP services, health tracking apps and mental health support for staff.
“SMEs should welcome advisers undertaking a full audit of existing products and services.”
GRiD spokesperson Katharine Moxham said: “Group risk products are often the unsung heroes in an employee benefits package. When SMEs, advisers and providers work together in ensuring the right choice of provision, the positive effects have the best chance of being appreciated throughout a business.”
