“Aviation and aerospace firms now realise that specialised employee benefits packages that cater for the specific needs of their sector are key differentiators in this cut-throat labour market”
According to Marsh there is a growing trend towards aviation and aerospace companies providing more sophisticated employee benefits packages in a bid to attract and retain global talent, amid an increasingly competitive labour market.
Between 2015 and 2034, it is estimated that an additional 558,000 commercial airline pilots and 609,000 commercial airline maintenance technicians will be required, as airlines add 38,000 airplanes to the global fleet (source: Boeing’s 2015 Pilot and Technician Outlook). Coverage for personal accident, emergency medical expenses, loss of licence and term life insurance are now among the major employee benefits that aviation and aerospace firms are leveraging to attract new hires and boost colleague retention.
Graham Knott, a Senior Vice President in Marsh’s Aviation and Aerospace Practice, commented: “Given the global nature of the aviation and aerospace industry, employees are increasingly concerned about issues such as political evacuation and paying medical expenses while working and travelling overseas. Pilots in particular are concerned about the financial implications of losing their licence as a result of being unable to reach the medical standards required by the licensing authorities.
“Aviation and aerospace firms now realise that specialised employee benefits packages that cater for the specific needs of their sector are key differentiators in this cut-throat labour market, where highly skilled personnel are actively pursued by competitors. These packages are fast becoming the first line of defence in retaining talent and attracting new recruits.”
To assist aviation and aerospace clients in improving their employee benefits packages, last year Marsh launched ‘Marsh Epsilon’, a dedicated employee benefits programme covering personal accident, emergency medical expenses, loss of licence and term life insurance, all tailored for the global aviation and aerospace sector.
Since its launch in August 2014, over 90% of Marsh’s clients have secured rate reductions of 10% or more by transferring their existing employee benefits packages to Marsh Epsilon. The only employee benefits package of its kind, Marsh Epsilon is underwritten by a number of Lloyd’s syndicates with Standard & Poor’s A+ ratings.
Mr Knott added: “Marsh Epsilon delivers an enhanced employee benefits offering to our aviation and aerospace clients, with fewer exclusions and superior coverage than standard products available on the market. Quite simply, it provides employers with the tools they need to maintain their competitiveness, while giving their employees the protection they require in times of need.”