THE number of firms offering flexible benefits for employees has surged over the past year, according to latest research.

Almost two-thirds of organisations now offer perks to attract and retain staff, including salary-sacrifice schemes, where staff can choose a number of tax-efficient benefits such as pensions and childcare, in place of cash.

Martha How, reward consulting team leader at Hewitt Associates, which published the 2006 annual flexible benefits survey, said: ‘Many organisations are finding that salary-sacrifice schemes offer a smooth and relatively quick route into flexible benefits while offering short-term cost savings for employers and employees.’

Recent research has shown the importance of the company car as a staff perk (Fleet News, August 24).

The majority of company car drivers (70%) would expect an increase in their pay to compensate them if they lost the use of a company provided vehicle.

The study of 440 drivers found that one in five people (22%) would resign if that happened.