UK - Employers are increasingly offering key staff alternative non-cash benefits to retain them, new research shows.
A survey by the Institute of Directors and Office of the e-Envoy found 85% of respondents were offering perks including higher pension contributions, out-of-hours study and even home computing on top of basic salaries.
Of the 365 firms surveyed, 68% were using salary sacrifice measures and 83% said it was becoming necessary in order to attract and retain key staff.
IoD director-general George Cox said the survey indicated a growing trend among employers.
He said: “Modern employers have to be more imaginative with their remuneration packages; they know that salary alone is no longer enough to attract the best staff.
“In an increasingly competitive market, employees are looking to top up their salaries with benefits that will make a real difference to their quality of life. That might mean a better pension or a grant to cover the costs of part-time study outside office time.”
Of the respondents already using salary sacrifice, 58% offered higher pension contributions, 48% flexible hours and 42% private healthcare.
The e-Envoy – a government department aimed at developing the UK’s electronic business – said it hoped greater use of salary sacrifice would alleviate a shortage of skilled IT workers.
A key element is the Home Computer Initiative which encourages employers to use tax breaks to buy computers for their employees who then repay the cost from their wages over three years.
Spokesman Andrew Pinder said: “There is obviously a major demand that, if fulfilled, could make a sharper difference to UK competitiveness. That is why the government has launched the Home Computing Initiative guidelines, which help businesses to do just that at no cost to themselves.”
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