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13/10/2016

AVCs most popular voluntary benefit

VOLUNTARY BENEFITS

Two-thirds of organisations surveyed by Employee Benefits magazine offer additional voluntary contributions to pensions, making it the most popular voluntary benefit to include in a scheme.

Providing staff with the means to top up or contribute to a pension through a voluntary benefit scheme means employers can be seen to be doing their bit to help staff out, but at very little cost to the organisation.

The 221-employer survey found private medical insurance, which is offered by 58% of respondents, has climbed up the list of the most popular voluntary benefits to join other healthcare products such as healthcare cash plans and gym membership. Tax-efficient benefits -- most notably childcare vouchers -- also appear to have caught employers' attention.

Key survey results

When setting up or negotiating discounts to include in a voluntary benefits scheme, 79% of respondents prefer to make deals directly with at least some providers.
18% rely solely on specialist voluntary benefits advisers.
68% do not pay a fee for their voluntary benefits package.
68% offer voluntary benefits through salary sacrifice arrangements.

Voluntary benefits defined

"These are products or services which are made available through an employer but are paid for by staff out of their own taxed income. These goods are typically offered at a discounted price, which enables employers to provide a wide range of perks at a relatively low cost. Organisations can either use a third party provider to put a plan in place or negotiate ad hoc discounts for staff with local shops or facilities. Voluntary benefits are unlike flexible benefits where the employer pays for the perks." -- Employee Benefits.

Want to know more?

Title: Voluntary Benefits Research, Employee Benefits.

Survey sample: The research is based on a survey carried out in May 2005 among registered users to www.employeebenefits.co.uk. In total, 221 organisations responded to the survey.

Availability: Employee Benefits magazine is published monthly. You can subscribe online to the magazine at http://sales.centaur.co.uk or tel: 020 7292 3719.

The voluntary benefits research is available, free of charge, on the Employee Benefits web site at www.employeebenefits.co.uk. Once you have registered (it's free to do so), click on "Research" and then select the downloadable PDF.

Posted 11 November 2005