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Employees Underestimate Perks

The UK workforce underestimates the amount of money companies spend on job perks, according to new research.

The cost of workplace perks and bonuses is underestimated by the majority of people with jobs in the UK, according to the results of a new survey.

Research carried out by a HR consulting firm has revealed that employees have misgivings about how much effort goes into organising perks such as Christmas parties and paying for benefits such as gym membership or health cover.

Figures from Aon Consulting show that the average British firm spends between 20 to 40 per cent of salaries on additional benefits for its employees.

Examples show that an employee with a salary of £26,000 a year will usually benefit from perks worth around 21 per cent of their pay cheque, with this figure rising for those with higher-paying jobs.

For those earning £60,000 a year, bosses will spend 39 per cent of this salary figure on benefits.

When searching for jobs, it's not uncommon to see additional benefits mentioned on adverts, with firms up and down the nation offering perks from private medical insurance to pension plans and life assurance.

However, despite attempts from bosses to keep staff happy with additional benefits, many works feel they are missing out. Some 98 per cent of those polled underestimated just how much money was spent on benefits.

The majority of workers said they thought ten per cent of their salary was spent on benefits – almost half of the lowest amount spent by bosses.

Commenting on the survey, Aon's head of flexible benefits Gareth Ashley-Jones told onrec.com: "There is a large gap between perception and reality – the research shows clearly that people do not understand the true costs of their perks and suggests that they are taking them for granted.

"Employers are underselling themselves – they must do more to get the message across that benefits should be taken seriously as an important and indeed very substantial part of remuneration packages."

It's not only office jobs that come with perks – sometimes working in a nightclub or restaurant can carry bonuses.

Cilla Black wouldn't be the famous face she is today if it wasn't for her early job at the Cavern Club in Liverpool. In the days before she was a singer, the future chartopper and Blind Date host worked in the cloakroom of the club – a job that may not have come with medical care, but came with free tickets to see The Beatles every night.

"The highs were it was five bob an hour and I never declared it to tax," she told the Metro. "I also got to see The Beatles for free. The gig began when the coats were hung up. The lows were having the same lunch every day. A bowl of Heinz tomato soup laced with the smell of disinfectant and a bread roll."


17/06/2008
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