How the economy has impacted benefits

The economic downturn over the last five years does not appear to have deterred employers from introducing benefits, with the proportion of respondents doing so in the previous 12 months remaining relatively steady over this period.

The Benefits Research 2013, which was conducted among 561 Employee Benefits’ readers, found that 48% of respondents have introduced new benefits in the past 12 months, compared to 44% who said the same in 2012 and 45% who said the same in 2011.

What has changed is the percentage of respondents that introduced benefits because they thought these would improve their image as an employer. In 2009, 43% said this was the case, but just 21% said the same this year.

Tax breaks are also now less of a reason for employers to introduce benefits, cited by 7% of respondents this year, compared with 28% in 2009. This may be because some tax breaks have been removed in the intervening years, for example on bus travel or subsidised food and beverages in on-site restaurants.

Graph
Sample: All respondents responsible for compensation and benefits in their own organisation (221)

Graph
Sample: All respondents responsible for compensation and benefits in their own organisation