Yes
48%
No
52%
Last month we asked whether your company’s spend on employee benefits had been reduced in the recession. The results show a relatively even split.
The downturn
The downturn has undoubtedly had an impact on both salary and employee benefits. Employees are having to reconsider how they spend their money as budgets continue to be squeezed by low pay rises and high inflation. As a result, staff are looking for schemes which can offer them savings, such as holiday trading and childcare vouchers.
Conversely, employers are also looking for value. Organisations are beginning to recognise that benefits are a great attraction and retention tool. Many cannot afford pay
increases, however offering a voluntary package can add value to the employee without costing the firm.
increases, however offering a voluntary package can add value to the employee without costing the firm.
Short-term incentives
Recent trends indicate that staff are becoming less interested in personal accident cover, payroll giving and medical screening – to name a few – as these are seen as longer-term investments. Given the financial strain that many households are being put under, employees are more interested in the short-term savings that they can make.
Consequently benefits such as holiday trading, where days can be sold back to the company for money, and salary sacrifice schemes, where employees save on tax, are
becoming more popular. In particular, salary sacrifice can be used for a number of different things including childcare, bikes and cars. This gives a tangible reduction in expenditure on regular items.
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