Fleet News

Staff have low perception of benefits

ABOUT 30% of employees are prepared to accept a lower value company car in return for more pay, according to a new survey by pay and benefits consultant Towers Perrin. Benefit programmes cost UK employers more than £50 billion a year, but they have little impact on recruiting, motivating or retaining employees, according to research among major companies representing 79,000 employees.

The survey claims that only 26% of employees say that benefits are one of the main reasons they stay with the company and only 28% of managers see benefits as a key reason why people join and stay with their organisation. Benefit programmes have consistently been thought of as a key player in company recruitment policies with the company car frequently mentioned as one of the biggest attractions.

Towers Perrin says employees have a low perception of the cost value of their benefits - 62% think they are worth less than 20% of pay - whereas the average cost to the employer can be more than 30%. The report suggests that employees recognise the importance of pensions and 20% are interested in giving up pay to increase their pension benefit.

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