Cycle to work scheme ''popular employee benefit''

Cycle to work schemes are a popular choice for organisations offering employee benefit packages.

According to a survey by accountants Kingston Smith, bike-based programmes are the third most popular non-insured element of an employee benefits package.

Holiday entitlement and performance-related pay were cited as the top two non-insured elements in the research.

Overall, it was found that there has been an eight per cent rise in employers offering benefits in addition to salary and holiday entitlement - meaning 98 per cent now offer some sort of package.

Mandy Merron, a partner at Kingston Smith, suggested an increasing number of companies are hoping their investment will boost morale.

She added that they are also important for retention purposes, explaining that those who do not focus on factors which make people feel valued could lose out in the long term.

"As soon as the economy turns and new vacancies appear, disgruntled staff are likely to leave. Before you know it the expense of high turnover is back," Ms Merron remarked.

Earlier this month, the Federation of Small Businesses suggested employee benefits such as flexible hours can suit small firms. Back