Employees are over three times more likely to select desirable gadgets than alternative methods for workplace savings when offered flexible benefits, Capita Employee Benefits has found.

According to the company, employee take-up of alternative saving methods, such as a workplace ISA, has been low at ‘usually less than 4 per cent’. However, it has found that the offering of desirable gadgets, such as computer tablets, is more popular, with take-up at around 10 – 15 per cent. The employee gains an effective discount through salary sacrifice and spreads the cost of purchase over one or two years.

Capita head of marketing Robin Hames said: “Put bluntly a gadget is three to five times more popular with employees than workplace saving schemes. This may be attributable to many factors: the economy, the fact that this is a relatively new proposition, the complications of the concurrency and tax rules and the challenge of pension auto-enrolment.

“With unemployment falling, employers are looking again at what benefits they need to offer to attract – and keep – the best candidates. But, while many providers have invested millions to develop their workplace savings propositions, there is currently little evidence of a significant appetite for such alternative savings vehicles purchased through the workplace.”

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