Employers urged to retain benefits packages

Date: 17th March 2010

British employers are being urged to retain employee benefit packages during the post-recession recovery period.

Friends Provident has called on businesses to "resist temptations" to cut the packages, which it said are "highly valued" by staff.

According to the organisation, by reducing or removing employee benefits, firms could face increased staff turnover as workers may move on to find better employment packages.

Declan White, group risk marketing manager at Friends Provident, said: "It is important for employers to consider not only the cost, but the perceived value of the benefits held by their staff as part of their decision making rationale.

"Even in today's uncertain economic times, employees will still look at what benefits they have versus what benefits they could have elsewhere. And the grass may well be greener."

Figures from a recent survey carried out by the company revealed that 34 per cent of employees would take a pay cut in order to receive health insurance, while 21 per cent said they would accept a reduced salary in place of increased income protection.