Employees prefer 'higher salaries'

As a consequence of a constriction in many household budgets, a number of different types of employee may prefer higher salaries to other employee benefits.

According to Peter Reilly, the director of human resources research and consultancy at the Institute for Employment Studies, as a consequence of the current credit crunch, in addition to increases in inflation and household budget constrictions, cash may also be preferable in instances where any salary increases are awarded at a rate lower than the rate of inflation.

"People who are on low incomes do want the money because they need to pay their debts and giving them gimmicks is neither here nor there," said Mr Reilly.

"[And] people can sacrifice an amount of pay for additional leave, … whereas somebody who is trying to pay their mortgage might want the money."

However, despite this potential shift towards a preference for cash, Mr Reilly stressed that employee benefits are good for both workers and employers.