XpertHR released its findings from their 2010 benefits and allowances survey are based on responses from 443 organisations employing almost 1.4 million people.
Whilst their survey covers a wide range of benefit types, it was interesting to note their statistics on flexible benefits.
The survey found that "flexible benefits are offered by 15.1% of employers, up from 12.2% last year. A small number of
organisations (1.8%) said that they were in the process of introducing a flex scheme, while 13.8% were considering doing so in the future.
Flexible benefits are more common among private sector services firms (15.7%) and manufacturing companies (16.2%) than in the public sector (9.6%). Unsurprisingly, organisations with a large annual turnover are much more likely to
offer flex schemes than those with a small turnover. Only a handful (4.5%) of organisations with an annual turnover of less than £25 million offer flexible benefits to employees compared with 42.3% of organisations with a turnover of more than £1.25 billion."
Note the split in flexible benefits between smaller and larger employers - only 4.5% of small companies compared to 42.3% of larger companies.
Redbourne comment
This is likely to be down to a number of factors:
- Generally less sophisticated pay and benefit design structures compared to larger employers
- Concerns over complexity, primarily surrounding administration and employment law
- Costs associated with higher take up of options that are employer subsidised
- Cost issues relating to service providers that operate flexible benefits
- Lack of flexible benefit products available to smaller groups of employees
At Redbourne, we understand that smaller and medium employers face a series of challenges when it comes to trying to offer pay and benefit packages that compete with larger employers. However, there are a wide range of options open to employers of all sizes to enhance their offerings and control the benefits they offer. Administration and communication can all be improved and solutions exist to suit all budgets.
Report editor
Sarah Welfare
Editor, IRS Pay & Benefits
Source: IRS Employment Review Date: 11/06/2010 Publisher: IRS
