Research from Barclays Financial Planning shows higher salaries win over benefits

Research from Barclays Financial Planning conducted amongst 200 small and medium enterprises (SMEs) indicates that whilst nine out of ten employers (90 per cent) offer their employees a pension scheme, only one in four companies (25 per cent) have total pensions take up among their employees.

The study showed two fifths (40 per cent) of employers believe their staff value higher salaries more than a benefits package and thus provides a greater motivation for their workforce. Only one in seven (15 per cent) of those interviewed strongly agreed a pension and benefits scheme helps retain and motivate employees, which provides insight in to why over 30 per cent of those surveyed chose not to implement a flexible benefits scheme.

Commercial Director for Barclays Financial Planning, Stephen Ingledew comments:

" Our research suggests there is a gap between what employers provide and what employees actually want. It is important to realise that whilst it might be appealing to have more disposable income in the short term, the reality of today’s changing financial landscape means you cannot afford to overlook planning for the future. A pension can form of central part of future financial goals. "

The findings revealed almost half (46 per cent) of the UK’s SMEs believed a bonus scheme represented the best value in terms of employee motivation and appreciation but only a quarter (24 per cent) agreed this offered the best value in terms of cost.