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16:47 - 22-April-2008
But smaller firms are finding ways of retaining skilled workers without breaking the budget through low-cost options such as voluntary employee benefits.
These comprise a range of products and services that staff can gain access to at a discount, including healthcare cash plans for an array of medical expenses such as optical and dental treatments.
Previously beyond the financial reach of smaller companies, employee benefits are becoming more affordable, says Tobin Coles, head of flexible benefits at Jelf Group, which recently launched myshopping:2go, a lowcost staff discount scheme for businesses with fewer than 200 employees.
'One of the biggest challenges and expenses for small businesses is finding and keeping staff, so they need to be able to offer something to attract them,' he says.
Health-related benefits can prove particularly valuable for small businesses, where the loss of a key employee through illness can seriously disrupt operations, says Coles.
The appeal of low-cost voluntary benefits was highlighted in a study by benefits provider AIG UK in which 80 per cent of employees found the concept of voluntary employee benefits appealing, while a quarter cited them as a deciding factor when choosing an employer.
It is an approach that has paid off for Manchester-based IT solutions provider JMC IT, which employs 110 and has a turnover of £10 million.
When it introduced a new healthcare cash plan last year, the company already offered a pension scheme, long-service bonus, onsite gym, company mountain bikes, free aromatherapy and massage, and a car valet once a week.
Managing director Andrew Burgess says: 'Take-up has been excellent, with 105 employees on the cash plan scheme.
'From my perspective, it is important that a responsible employer cares for the company's most important asset - its staff.'
He says that the company's strong culture of employee care, which includes the staff benefits, has led to outstanding levels of retention - saving on recruitment costs.
'Staff retention stands at over eight years,' says Burgess. 'That's very impressive for a small company, particularly in the IT sector.'
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The motorist feels somewhat battered from all sides, seeing the oil companies going off with cash in their pockets and the Treasury filling its coffers
