McNicholas Construction is to axe its home computing initiative because it has proven to be too expensive for both staff and the company. It will remove the scheme from its flexible benefits package later this month after having had to pay the outstanding balance on equipment loans following the departure of employees.

When two employees were made redundant earlier this year, the construction company permitted them to keep the computing equipment, adding to its severance costs.

In addition, the balance on a loan for a laptop computer is outstanding following the departure of another employee. Before making the decision to axe the HCI the company conducted a staff questionnaire which revealed the benefit was "too expensive, and better deals could be found in the high street and on the internet".

It will replace the HCI, which was provided by RedPC, with discount retail and leisure vouchers when it unveils a new line-up of benefits later this month.