Small businesses often assume that meaningful employee benefits are something only large companies can afford. Yet across the UK, more and more small employers are introducing protection benefits that used to be considered out of reach.
These include group life insurance, group income protection, group critical illness cover, and private health insurance. They are a great tool that help small businesses recruit the best staff, retain top talent, and build a workplace culture that genuinely stands out.
WWhy small businesses cannot rely on salary alone
Salary matters, but modern employees look for something more. They want security, support, and reassurance that their employer values their wellbeing. In fact, many employees would choose a job with good benefits over one with slightly higher pay.
For a small business, benefits like group life, income protection, critical illness cover, and health insurance can transform your ability to attract and keep the best staff.
“Offering group life cover helps create a culture where employees feel secure, valued and supported every day.”
Joshua Swindels
Business Protection Advisor at IGotCover
Group life insurance: a benefit employees love
Group life insurance provides a tax-free lump sum to an employee’s family if they die while employed. It is simple, affordable, and one of the most valued benefits an employer can offer.
Employees appreciate it because it protects their families. Employers love it because:
- It is cost-effective
- It is usually tax-efficient
- It helps build loyalty
- It supports recruitment
For a small business, group life cover sends a powerful message. It shows that the business cares.
Group income protection: protecting your team during long-term illness
If an employee becomes too ill to work, group income protection provides them with a regular income for a set period. This takes enormous pressure off the employee and their family during a difficult time.
For the business, the benefits are just as strong:
- Reduced long-term sickness costs
- Access to rehabilitation and return to work support
- Improved staff stability
- A stronger wellbeing culture
Small businesses often feel the absence of a key employee more than larger firms. Income protection provides certainty and support for both the employer and the employee.
Group critical illness cover: real support during life-changing events
Group critical illness cover pays a tax-free lump sum to an employee if they are diagnosed with a serious condition such as cancer, heart attack, or stroke. This gives the employee financial breathing room when they need it most.
For small businesses, it strengthens loyalty and helps reduce the emotional and financial impact of staff illness.
Employees value it because the payout can help with:
- Medical costs
- Mortgage payments
- Family expenses
- Recovery and rehabilitation
It is one of the most impactful benefits an employer can offer during life’s most difficult moments.
Health insurance: faster access to treatment
Even small businesses can now offer private health insurance thanks to competitive plans designed for smaller teams. Faster diagnosis and treatment mean employees return to work sooner, and they avoid long NHS waiting lists.
Health insurance supports both employee wellbeing and business productivity by providing access to:
- Specialist consultations
- Diagnostic tests
- Physiotherapy
- Mental health support
- Hospital treatment
For small businesses, losing a key employee to illness for months can cause real strain. Health insurance helps keep teams healthy and operations steady.
Why your competitors are already doing this
Small businesses across the UK have recognised that benefits are no longer optional. They are essential to competing for talent. By offering group protection benefits, they gain advantages such as:
- Lower staff turnover
- Higher employee engagement
- Better recruitment outcomes
- Stronger employer reputation
- Improved productivity through well-being support
These businesses understand that protecting their people strengthens the entire company.
What this means for your business
If your competitors offer these benefits and you do not, you may lose skilled employees or struggle to attract new ones. Candidates compare more than salary. They compare security, wellbeing support, and long-term care.
Introducing a single benefit makes a difference. Introducing a package of group life, income protection, critical illness cover, or health insurance can transform your business.
These benefits are not as expensive as many business owners expect, and they deliver value far beyond their cost.
Conclusion
Your competitors are already offering benefits that support, protect, and retain their employees. Group life insurance, group income protection, group critical illness cover, and health insurance are no longer optional perks. They are essential tools for small businesses that want to stand out, attract talent, and build a stronger future.
If you want to protect your employees and strengthen your business, speaking to a specialist from IGotCover can help you understand the most cost-effective package for your staff. A healthier, more secure team is one of the best investments you can make.
