Organisations spend 20% of paybill on benefits

Employers spend one-fifth of their total paybill on employee benefits, according to research from IRS Pay and Benefits Bulletin, published by Industrial Relations Services. But 80p in every 1 is soaked up by employer contributions to the pension bill.

In its annual research of benefits and allowances provision, IRS Pay and Benefits Bulletin looks at a series of general allowances and benefits, as well as more specifically at health-related benefits.

Key survey findings include:

- Employers spend 20% of the paybill at the median on benefits, half spending more and half less.

- Just 9% offer an attendance allowances to employees with perfect attendance records over a period of time.

- 23% pay a standby allowance to employees who may be called in to work in an emergency, while 35% pay call-out allowances to those who are actually called in.

- 51% ofn employers pay employees who are ìacting upî into a more senior position.

- Just over half (52%) make additional payments to qualified first aiders. The median payment is 156 a year.

- Two-thirds (64%) offer long-service awards.

- One-third (33%) have an on-site canteen offering subsidised meals to staff.

- Four in 10 (39%) offer a discount on goods and services to employees, either on their own products or those of other organisations.

- Take-up of flexible benefits packages remains a minority practice, with just 9% of the organisations surveyed by IRS having a scheme in place.

- Tax efficient childcare vouchers are available in 42% of surveyed organisations.

Survey findings in relation to health-related benefits include:

- 87% of organisations allow employees to take time off for medical appointments.

- More than two-thirds (72%) operate a private medical insurance scheme for employees. Partner and family cover tends to be limited to more senior grade employees.

- Four in 10 (42%) offer permanent health insurance for at least some employees. The most common proportion of income paid under a scheme is 75% of basic salary.

- Counselling and/or employee assistance programmes are made available to employees in almost two-thirds (60%) of organisations.

IRS pay and benefits editor, Sheila Attwood, said:

ìThe increasing array of benefits on offer is testament to the more sophisticated reward strategy adopted by some organisations. However, it is still the case that both employer and employee often overlook the considerable financial value that these benefits can potentially represent.

ìOver the next 12 months, employers have indicated that they will be considering voluntary benefits, as well as salary sacrifice options such as childcare vouchers. Although many organisations continue to look into flexible benefits packages, our experience has shown that few of these will go on to introduce a scheme.î