Companies of all sizes are in danger of losing staff to rival organisations by failing to promote their rewards and benefits packages during the recruitment process.
According to the Chartered Institute of Personnel and Development’s annual reward and management survey, the average value of non-cash benefits to employees is a further 15% on top of their basic salary, while this increases to 30% for senior executives.
But according to executive search organisation Hitchenor Wakeford Search & Selection, many companies are failing to cash in on the benefits they offer by not promoting them when selling the firm to prospective employees.
"A good benefits package can help attract, retain and motivate staff but all too often, employers miss a trick by not discussing it at the interview stage,” said Adrian Hitchenor, the recruitment company’s chief executive. “Benefits given to high earning executives can often be worth up to 30% of their salary but, if recruiters fail to communicate this, they run the risk of losing top people to their rivals.
"Many candidates are reluctant to ask about benefits in detail at the interview stage so it is up to employers to discuss this along with the salary. In many cases, the extras on offer can be a dealmaker and can help secure the best person for the job."
Many small companies, in particular, struggle to recruit decent staff in the face of competition from larger outfits, especially in areas such as IT, sales or accountancy where the skills shortage is at its most intense.
Benefits such as contributory pensions, profit-sharing, annual bonuses or even a stake in the firm could make the difference between hiring that exceptional salesperson and losing him or her to your direct rivals. And if that happens too often, it could spell trouble for the future success of your entire operation.
The search company is urging organisations to improve the way they tell new and existing staff about the benefits that are on offer.
"As benefits become more valuable in the future, good communication will become even more important,” said Hitchenor. “New employees need to know exactly what they are entitled to and existing staff need to be informed about any changes taking place. Employers should spend as much time planning communications as they do designing the benefits package."
The CIPD survey polled 535 companies employing 1.4m employees, and also found that 85% predict there will either be no change or an expansion in the benefits they offer staff over the next 12 months.