News on 3 November 2000
A report into flexible benefits, released by the Industrial
Society yesterday, showed that 53% of participating organisations now
operate a flexible benefits scheme – a number which has doubled in
the last four years.
According to the survey, 27% of employers introduce the schemes mainly
to help retain staff, 16% as a recognition of employee’s individual
requirements, 16% as a result of competitive pressures, 10% because of
cost effectiveness etc.
Christine Garner, the Industrial Society’s head of organisational
development said:
"Organisations introduce flexible benefits for a variety of reasons.
They show that a company is forward thinking and they allow employees
to choose benefits suitable for their needs. Parents may want to take
extra holidays to be with their children. Older people may want additional
medical benefits or life assurance and younger staff may want more money
rather than extra holidays. For employers they are a way of increasing
employees’ satisfaction and also of attracting the best recruits."
In 77% of companies all employees are eligible for the scheme, in 19%
flexible benefits apply to middle managers and above and in 5% of companies,
only the top 10% of employees are covered.
Moreover, 92% of the staff surveyed want to have a choice over their benefits.
38% of employees would rather have their basic pay increased and 36% said
that flex benefit schemes are difficult to manage.
The flexible benefits most frequently offered are healthcare, additional
holiday, company cars, life insurance, medical insurance, share plans/options,
dental care, optical care, gym membership, childcare vouchers and nursery
vouchers.
