UK - Employers are increasingly turning to flexible benefit packages in a bid to maintain and recruit staff, research by Hewitt Bacon & Woodrow reveals.
The report – based on responses to its 2002 survey – says that 70% of organisations have either implemented a flexible benefits plan or are considering doing so.
And the consultant adds that 80% of firms which have implemented a flex plan, believe it has met or exceeded expectations.
Hewitt flexible benefits consultant Lisa Miller said: “Flexible benefits have become part of the UK corporate landscape, with twice as many organisations implementing a flex programme in 2002 compared with the year before. We expect this figure to increase again.
“Flexible benefits are also being made available to more employees, with one third of companies whose plan is not currently open to all employees planning to widen the reach in the future.”
Hewitt said that 44.2% of firms saw the main attraction of flex packages was their ability to meet the diverse needs of their workforce; 16.6% believed they helped boost staff retention and 9.2% felt they increased employees’ understanding of total compensation.
Hewitt also found that organisations were offering a greater variety of lifestyle benefits than they had in the past and instead of what it called “traditional insurance-based benefits”.
The consultant found that 71% of firms offered childcare vouchers, 66% insurance and 50% retail vouchers.
However, the most popular benefits were private medial insurance (94%), extra holiday time (92%) and life assurance (78%).
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