Recruiting and retaining staff

Companies are losing job candidates to rival firms because they fail to communicate the value of their benefits package, say recruitment experts.

The average value of non-cash benefits to employees is 15% of their salary, according to a recent survey by the CIPD (Chartered Institute of Personnel and Development). Senior executives can expect perks worth the equivalent of 30% of their salary.

Despite the value of these perks, recruitment experts say too many employers undersell them to potential 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. 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," says Adrian Hitchenor, CEO of Hitchenor Wakeford Search & Selection.

"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."

The CIPD survey questioned 535 organisations employing around 1.4 million employees. It also found that 85% predicted no change or an expansion in their current benefit scheme over the next 12 months.

"As benefits become more valuable in the future, good communication will become even more important. 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."

Details of the Reward Management Survey 2006 in full