Long-term planning beats short-term perks

Long-term planning beats short-term perks

As the credit crunch bites, employers are being reminded that Britain values its benefits and that many employees are looking for long-term support ahead of short-term financial gain. Research released from Friends Provident found that one in five (20 per cent) British workers have turned down a job due to the unattractive pension and holiday benefits offered.

The research reveals that, while the annual bonus is still attractive to boost finances in the short term, British employees also value schemes that can help them in the long run, with almost a quarter (22 per cent) singling out an employer contributory pension scheme as their preferred benefit.

The lure of particular employee benefits changes with age, and the emphasis is steadily increasing over time to focus on pension schemes. Over one third (35 per cent) of employees aged over 50 would select an employer contributory pension scheme as their favoured benefit as opposed to the under 50’s who would prefer an annual bonus.

And it would bode well for the over 40’s to secure a good pension scheme considering nearly a third (30%) of 41-50 year olds, and over a fifth (22 per cent) of those over 50 have no plans for the future and are hoping things will work out for the best.

Older employees are also more likely to turn down a job due to an unattractive benefits package (26 per cent) as opposed to those under 40 (21 per cent). And more than a third of employees (36 per cent) would feel incentivised to stay at work beyond the state retirement age by an attractive employee benefits package.

Martin Palmer, head of corporate pensions marketing at Friends Provident, said:

“In these challenging times we are urging employers to recognise what workers in the UK want and to look further down the line when reviewing the role attractive pensions offerings and holiday packages play in attracting and retaining their staff.

“A pension is a very important benefit and will continue to have a major impact later on in the employees life. A good company pension scheme could be the difference between today’s employees living a comfortable retirement tomorrow, or living close to the poverty line.”

« Friends Provident signs deal with Wipro Friends Provident announced today that it has signed a three-year contract for the provision of IT Application Development and Support services from Wipro Limited. The new contract will give Friends Provident greater flexibility and cost certainty through the use of an ‘outcome-based’, fixed price engagement model and is extendable at the option of Friends Provident for an additional two year period. The deal enables Friends Provident to procure discrete IT services in variable quantities over the term and will achieve estimated cost savings of up to £16.5 million over five years commencing in 2010. Andy Jackson, director of IT at Friends Provident said: “The new contract negotiated with Wipro gives Friends Provident more flexibility to manage resource levels while retaining control and making significant cost savings. Friends Provident remains committed to the service that it provides to its customers, clients and partners, and we are confident that this new arrangement will lead to overall service improvements.” Ajoy Menon, Global Head of Insurance Solutions at Wipro said: “Wipro have had a successful and mutually beneficial strategic partnership with Friends Provident for eight years spanning IT and Business Process Outsourcing. The new contract enables Wipro to offer increased value to Friends Provident in an outcome based engagement model through process excellence, higher offshore leverage, and greater accountability and ownership in delivering projects. Our partnership supports variable demand across IT and will enable Friends Provident to focus on their core value propositions and customer service excellence. Wipro estimate that if the contract is extended to 5 years, this will produce a revenue of £40 million over that period.” Thirtysomethings in the midst of a financial bottleneck yet contemplating career u-turn »

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