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The majority
of British workers greatly underestimate the costs of their benefits
to their employers, leading to calls for companies to do more to
communicate with their employees.
A national survey of 1,300 working adults, conducted by Aon Consulting,
found that 98 per cent of British workers believe their employers
spend less on employee benefits as a percentage of their individual
salary than the true cost. 69 per cent said they thought employers
spent no more than ten per cent, and almost half (46 per cent) believed
that just five per cent or less of their pay was put towards benefits.
Almost a quarter of responses (23 per cent) put the figure at between
six and ten per cent of their salary.
In reality, British companies typically contribute between 20 and
up to 40 per cent of salary in additional benefits. Only two per
cent of those surveyed believed that their employer spent at least
20 per cent of their salary on benefits.
Commenting on the survey’s findings, Gareth Ashley-Jones,
head of flexible benefits at Aon Consulting, said: “There
is a large gap between perception and reality – the research
shows clearly that people do not understand the true costs of their
perks and suggests that they are taking them for granted.
“Employers are underselling themselves – they must do
more to get the message across that benefits should be taken seriously
as an important and indeed very substantial part of remuneration
packages.”
Employee benefits are non-wage compensations given to employees
in addition to their salaries, and common benefits include private
medical insurance, life assurance, disability income protection,
holiday and pensions.
- Pensions
Age June 2008
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