EMPLOYEE BENEFITS
Cost control is key challenge in benefit provision
The top challenge organisations face when offering employee benefits is controlling costs, according to recent research commissioned by Vebnet.
The survey of reward andpension decision-makers in 200 of the top 1,000 companies in the UK found that 34% cited cost control as the main consideration. Second and third respectively were maintaining a competitive advantage and communication. The least important consideration among those questioned was meeting the diverse needs of the business, with only 4% highlighting it.
As many as 72% of respondents believed they were leveraging maximum value from their current benefit spend – but 26% said they were not.
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Reward objectives
The survey also asked survey respondents to rank their reward objectives in order of importance, with almost 50% choosing “employer of choice” as number one. However, almost 40% also ranked it as their least important objective. The overall key objective for employees was to maximise cost savings, but interestingly future cost control measures were less important. Employee engagement, while not the number one consideration, scored highly as a second consideration with 31%.
A final word
“The invaluable cost savings that can be achieved by employers and employees through the implementation of schemes such as salary sacrifice, holiday buy and sell and retail vouchers has been demonstrated many times before. By offering an attractive benefits package employers can achieve and maintain a competitive advantage but the key to both is communication. Flexible benefit offerings are most effective if they are taken up by a substantial number of employees, and that awareness generates loyalty and that desirable competitive advantage. Communication of what is on offer is almost as vital as the benefits packages themselves.” - Richard Morgan, Director of consultancy, Vebnet.
Want to know more?
Survey details: Standard Life/Vebnet commissioned independent market research agency Your Opinions Research, to conduct a telephone survey amongst 200 finance directors and appointed representatives of finance directors who are key decision-makers regarding defined contribution pension schemes and benefits packages. Participants were selected at random from the top 1,000 UK companies. The survey was undertaken between 28 July and 10 August 2009.
Vebnet is a “market-leading provider of reward and benefits services to the world’s most progressive employers” and is part of the Standard Life Group. To find out more visit www.vebnet.com.