More benefits for more staff

Employers are increasingly offering their staff a range of non-statutory benefits and allowances, according to research issued today (23 June 2004) by IRS Employment Review, published by LexisNexis. Staff benefits, including private medical insurance, call-out payments, car allowances and staff discounts, can add a significant amount to the total remuneration package for employees.

The research, conducted in March and April 2004, is based on a survey of 209 HR departments. The results are available in the new issue (802) of IRS Employment Review (www.irsemploymentreview.com).


KEY POINTS

-While fewer than one in 10 employers (8%) offer a flexible benefits scheme, 5% of organisations are introducing or considering a flexible benefits scheme in the next year. Changes to benefits are often deemed necessary for cost-effectiveness, recruitment and retention initiatives, or to keep up to date with current employment practice.

-More than one-third of employers offer staff access to discounts on their own or external providersí goods and services.

-Six in 10 employers reward long service in their organisation. The range of rewards on offer include cash, gift vouchers and gifts, while some will contribute towards the cost of a party to celebrate employeesí commitment to the organisation.

BENEFITS

-More than half (54%) of the organisations surveyed make deputising payments to staff standing in for senior colleagues. Most will pay the difference between the employeeís own salary and that of the higher position.

-Almost half the respondent organisations reward their employees who are qualified first-aiders. Typical payments ranged between 100 and 250 per year.

-Just over a third (34%) of employers provide a subsidised staff canteen, with more than half of these organisations making this benefit available to all employees. Subsidised canteens are a tax-efficient benefit. Luncheon Vouchers are far less popular with just one organisation offering this.

-Less than 2% (three companies) offer mortgage subsidies, while other employers report the demise or phasing out of this benefit. This may be due to low interest rates now widely available.


IRS Employment Review researcher/writer, Sarah Dennis said:

ìFlexible benefits have become a much talked about and widely researched innovation in recent years. Other IRS research shows that in spite of the relatively slow development of such schemes, some HR managers welcomed the concept of salary sacrifice, where employees give up some of their basic pay in exchange for extra benefits. These employers were particularly interested in the option to buy and sell holiday entitlement.

ìA major disadvantage of a flexible benefits scheme is the substantial administration involved in implementing the system to all staff. Those HR professionals who had achieved the implementation of a flexible benefits package saw this as a major achievement for their organisation. It will be interesting to see how many other employers decide to adopt such a rewards package in the coming months and to what extent employees benefit.î