50% of employers believe competitors offer better benefits

Almost half of HR professionals working for large firms believe their competitors offer a superior benefits package.

The findings came out of a survey by YouGov for vehicle leasing firm Lex Autolease. The survey polled over 300 HR managers and directors of firms with more than 1,000 employees

Only 1 in 5 (17%) think they have a more enticing employee offer, while 40% of respondents predict that their future benefits package will become more flexible or incorporate more products. Almost two thirds (63%) would implement a new employee benefit on the assumption that it will financially benefit the organisation.

Almost a quarter (24%) of organisations outsource some, or all, of their benefit provision. Of these, 29% use third parties because they can obtain better deals or rates and 56% do it because it is generally more cost effective.

Claudia Rose, corporate sales director at Lex Autolease, said: “The grass is greener mentality is prevalent but, to a degree, this helps to safeguard against complacency.

“It is important to offer greater choice, but also consider broadening accessibility to those perks. The company car, for example, has almost been the sole preserve of management level employees for a long time, but times are changing.

“Tax efficient and cost neutral schemes such as salary sacrifice are growing in popularity, particularly among large firms which are able to introduce flexible benefits across the board. Rewarding staff is the best way to keep them motivated and a company car still retains a certain prestige value.

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“New benefits will clearly need to demonstrate cost effectiveness and added value, but the HR function continues to make those judgement calls, despite the growing influence of financial stakeholders.”

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