Friday, February 20, 2009
More than 62% of employers do not offer their staff any kind of flexible benefits package, the first Vebnet Reward Survey reveals.
The employee benefits provider said where a flex package is required the most popular benefit is childcare vouchers through salary sacrifice. The survey found, of those who offered employee benefits, 86% of firms gave employees the opportunity to use childcare vouchers.
However, more than a quarter of respondents did not have a clear rewards communication strategy and did not personalise offerings for individual employees.
The Vebnet survey - which polled 8000 HR professionals - also said 43% of employers do not feel their staff had adequate access to financial information to help them prepare for retirement.
And 53% felt their employees do not have adequate retirement funding.
The firm said 2009 will be a "tough year" but the survey suggested successful organisations will be in a stronger position to rise to the challenges by making sure that they have the right mix of benefits.
Vebnet chief executive Gerry O'Neill said current market conditions have made it essential for firms to review their reward strategy performance.
Chief executive Gerry O'Neill said: "As the global economy faces extremely challenging times, UK employers are beginning to confront issues that affect both them and their employees.
"This survey comes at a vital time to help us understand the future direction of reward policy over the next few years."
Meanwhile, the firm announced has moved to larger premises in London's Liverpool Street to support its continued growth.
O'Neill said: "Although the financial climate is very tough, we have clear visibility into 2009 as Vebnet attracts a positive number of clients who will benefit from our superior solution and services."
Source: 'More than half of employers provide no flex package' by Jenna Towler. http://www.professionalpensions.com/840666
- Manesh Patel (YouatWork)
- 2/23/2009 09:56
In the current tough financial climate, employers are seeing tax free benefits such as childcare vouchers, cycle 2 work schemes, tax free bus travel as a way of an introduction to flexible benefits for their employees.
Many employers are seeing the cost of introducing flexible benefits as a deterrent, this has however seen many companies offering tax free benefits as cheaper alternative and as a start to offering a flexible benefit schemes in the future. Tax free schemes benefit employers by giving them the employer NI saving and contributes to the funding of a future implementation of flex scheme schemes.