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Flexible benefits improve employee retention

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18th Aug 2003
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Over 60% of companies report that the introduction of flexible benefits increases employee commitment and retention, according to the 10th annual Flexible Benefits Survey.

The survey of 400 organisations conducted by Hewitt Bacon & Woodrow, also found that 2002 saw the largest increase in organisations implementing flexible benefits for the past decade.

The research reveals that 70% of responding organisations have already implemented a plan, or are considering doing so - with 80% of respondents stating that their flex programme had met or exceeded expectations.

Lisa Miller, flexible benefits consultant of Hewitt Bacon & Woodrow, said: "Flexible benefits have become part of the UK corporate landscape, with twice as many organisations implementing a flex programme in 2002 compared with the year before."

She added: "Flexible benefits are also being made available to more employees, with one third of companies whose plan is not currently open to all employees planning to widen the reach in the future."

Meeting the diverse needs of employees was perceived to be the most important advantage of a flex package, followed by helping retention and increasing employee understanding of total compensation.

The survey also found that organisations are now offering a greater variety of lifestyle benefits:

 

  • 71% offer childcare vouchers

     

  • 50% offer retail vouchers

     

  • over half of organisations now offer, or are planning to offer, a home computer as a benefit.

The most popular benefits offered to employees continue to be private medical insurance (94%), holiday (92%) and life assurance (78%).

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