UK - Employers are wasting nearly £5bn a year on undervalued employee benefits for younger members of staff, an employee benefits administrator claims.
Research shows white collar workers aged 18 to 30 receive, on average, around 10% of their salaries – in aggregate around £4.7bn – in benefits.
But the study – carried out for WPA Protocol by NOP World Business – found that around two-thirds of employers said career decisions were totally unrelated to additional flexible benefits.
The study – based on responses from 100 HR directors and managers from the UK’s top 1500 companies – showed that junior employees were considered “ambivalent” to benefit packages.
But 96% of respondents said benefits were “fairly” or “very important” for more experienced employees.
WPA Protocol chief executive Adrian Humphreys said “savvy employers” should be questioning the benefit of a standardised reward package – both to themselves and their existing or potential employees.
He said: “The further we move towards a knowledge-based economy, the more important it will be for employers to know that they’ve got the right benefits package in place to motivate and retain good people, at a price they can continue to afford.”
Asked which benefits employers would consider cutting first if they were looking to reduce costs, just over a quarter (27%) said a company car, 14% said pensions and 11% said healthcare provision.
Pension Insurance Corporation (PIC) has agreed to a 30 year debt investment in Phoenix Community Housing, a not-for-profit, resident-led housing association in London.
Royal London has announced plans to allow customers with guaranteed annuity rates (GARs) to convert their guarantees into a top-up for their pension pot, subject to High Court approval.
The Salvus Master Trust will welcome another 1,200 members and 20 employers as it absorbs the £7m Complete Master Trust.
Aon has appointed Emma Adair to lead client service for its UK investment team.