Cost of undervalued packages
Employee benefit packages should be better tailored to the needs of individual workforces, according to healthcare scheme administrator WPA Protocol.
According to a recent NOP World Survey, which interviewed 100 HR directors, around £5bn is being wasted on under-valued benefits. WPA Protocol said this latest research highlights the need for companies to review the effectiveness of their existing benefits package.
When asked which benefits they would cut first if reducing costs, 27% of those surveyed said a company car, compared to 11% who stated healthcare provision.
"Employers in the UK are at a crossroads. Cost containment is key and with the cost of benefits escalating annually, switched-on employers are recognising the need to re-evaluate the way in which they remunerate their staff," said Adrian Humphreys, employee benefits administrator at WPA Protocol.
"The further we move towards a knowledge-based economy, the more important it will be for employers to know they've got the right benefits package in place to motivate and retain good people, at a price they can continue to afford."
