Staff will swap pay cuts for employee benefits - Friends Prov

Employees value the support of workplace benefits during the current economic climate, new research from Friends Provident says.

Results from the provider's Visions of Britain 2020 study suggest employers should think twice before reducing these packages as they can be key to staff recruitment and retention.

It found that over one third (34%) of those surveyed would be prepared to take a pay cut to receive health insurance, and a further 21% would accept a lower salary to receive income protection from their employer.

The provider is urging employers to resist temptations to make cuts to group risk and health insurance benefits, as these benefits are highly valued by staff as part of their overall employment package.

Declan White, group risk marketing manager at Friends Provident, said: "Employers are increasingly facing the quandary of whether to ‘retain, revise or remove' their employee benefit packages.

"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," he added.