01-05-08 09:22

Focus on Employee Benefits

Companies urged to focus on employee benefits not just basic salary

Fewer than fifty percent of employees receive private health care cover despite it being ranked as the second most important benefit when choosing a job - according to a recent on line survey conducted by principle hr.

The survey also found that employees are more likely to be attracted to and stay with companies that offer pension scheme contributions, bonuses and career progression.

principle hr Director Audrey Hughes said “The results of our employee benefits survey clearly indicates that companies who focus on employee packages as a whole, not just basic salary, attract a higher calibre of candidate and have better retention rates than their competitors.

“We are encouraging clients to look closely at the overall packages they are offering. Rewarding employees with benefits such as flexi-time, gym contributions and additional holidays can result in a more content and loyal workforce increasing retention and productivity rates”.

Basic salary, although important, is not the only factor that attracts candidates to an organisation or motivates them to stay with a company in the long term”.

The survey which was conducted to provide our clients with a guide to the current employment market asked respondents to list employment benefits in order of importance. Pension contribution and health care were ranked one and two, with bonuses and career progression closely following.

“We believe that benefits such as offering an annual bonus or career progression can be adopted without necessarily costing a great deal. It could be that the company introduces a small Christmas bonus to make their staff feel appreciated.

We have also found that many companies who have strong career opportunities don’t always communicate them effectively to potential candidates or remind their current employees that they exist. This effectively makes the benefit a lost opportunity. However it can easily be fixed by spending the time to include it in a job specification or by making it a priority to discuss in staff reviews.” said Audrey Hughes director of principle.

High staff turnover costs Irish companies millions of euros each year in lost productivity and knowledge. Add this to the cost of recruiting the replacement workforce and it makes economic sense to analyse what additional benefits your company can offer to attract and keep the right candidates” said Audrey Hughes Director principle hr.