Flexible benefits plans on the increase in UK companies, finds Aon Hewitt
The number of companies offering flexible benefit plans to employees has increased considerably in the UK, a new report reveals.
Aon Hewitt’s Employee Benefits and Trends Survey, released earlier this year, indicates that flexible benefits increased in popularity in 2011, with 70% of respondents stating that they already used, or were about to introduce, flexible benefits plans.
The research, based on responses from 185 employers, also suggests that 82% of companies which have already implemented flexible benefit schemes believe that employees are particularly satisfied with the quality of benefits provided. 80% answered that they have had a positive effect on employee retention and recruitment, and 66% stated that employee engagement had improved.
Martha How, Principal Consultant at Aon Hewitt, says: “This increase in interest builds on the steady upward trend we have seen over the last decade, as employers increasingly recognise the advantages of a good flexible benefits programme as a benefit cost management mechanism as well as a powerful employee recruitment and engagement tool.
“Our survey highlights that introducing a flexible benefits plan can have a positive impact on employees. To ensure this positive effect continues longer-term, we recommend that employers regularly review the benefits offered, and that individual employees periodically review their benefit selections, to ensure that their benefits package continues to provide the right kind of opportunity for employees at each stage of their working life and continues to deliver for employers."