COMPANY cars remain one of Britain's most popular employee benefits despite an increasing variety of perks being offered by employers as they introduce wider flexible benefits schemes.

After holidays, company cars take second spot (70.3%) – putting the benefit significantly ahead of third-placed childcare (44.9%) in a menu of 16 lifestyle benefits prized by staff.

According to the Hewitt Associates survey 'Employer Attitudes to Flexible Benefits 2000 - 2001', fewer employers are offering a company car option - 18.9% don't this year compared to 14.7% in the last survey. But among those employers which do offer a company car, more are allowing choice with 70.3% offering a choice in cars or cash for cars, compared with 66.2% in the last survey.

And 21.4% of employers which currently offer no flexible benefits package in relation to company cars plan to do so in the future. The survey found that the flexible benefits which proved more popular than expected with employees were holidays, followed by dental insurance, private medical insurance, pension, choice of car/car-cash and critical illness cover.

Employer Attitudes to Flexible Benefits 2000 - 2001' is published by Hewitt Associates, Prospect House, Abbey View, St Albans. For details telephone 01727 888200.