Cost-cutting remains high on many employers’ agendas, with one in four financial decision-makers prepared to cut all types of employee benefits.
According to the Employee Rewards survey published by Lloyds TSB Autolease, just under a quarter (23%) of the 200 financial decision-makers questioned said they would not offer any form of employee reward package if they could start their benefits strategy afresh.
The survey found company cars are the benefit most at risk, with 14% of directors saying they would cut this benefit first, given the choice. A further 5% would do away with car allowances.
Other perks are also coming under threat. One in 10 decision-makers (11%) said they would cut back on bonuses, and 8% saw company-funded leisure activities, such as gym membership, as a luxury their staff could do without.
However, the cost of healthcare (7%), pensions (5%), childcare and holiday entitlements (2%) did not appear to be major business concerns, perhaps partly because of the high emotive value staff attach to these benefits.
Claudia Rose, corporate sales director at Lloyds TSB Autolease, said: “These findings strongly reinforce the view that HR departments are coming under enormous pressure to justify the role of benefit packages within their organisations. But they are also best placed to remind directors that a properly rewarded and motivated workforce is essential for a business managing its way out of the slump.”