Companies risk damaging employee motivation as they cut benefits?

Date: 05/01/2011

Employee motivation could decrease as employers cut back on staff benefits to save money, according to research.

A study by BDRC Continental shows that only one-third (34 per cent) of organisations offer a contributory pension scheme for staff, and even less of small businesses offer this – just 31 per cent.

Just seven per cent of small businesses now offer workers group income protection for those unable to keep working, according to Employee Benefits.

Shiona Davies, director of business-to-business at BDRC Continental, said: "Consumers may be starting to take more responsibility for their financial planning needs, with an increase in the sale of critical illness and life insurance, but this survey is clear evidence that the vast majority of small businesses are failing to protect themselves against the business impact of losing key employees."

Recently the Trade Union Congress (TUC) advised companies to involve their staff when deciding on cost-cutting measures, as failing to do so could harm staff morale.

Posted by Elizabeth Mewes

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