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British employers are taking a much more flexible approach to working practices and the provision of benefits as a means of recruiting and retaining staff, executives say.
This approach also is being encouraged by the government, which introduced new working laws last year, including flexible working arrangements for the parents of children under six and disabled children under 18. Under the new law, an employee with a young or disabled child must set out in writing the form of flexible work conditions he or she wants to help meet child care responsibilities, and the employer must meet and discuss how they can be accommodated.
"The result is a happier, more motivated and more loyal workforce and a business better able to adapt to changing market conditions. In other words, a little flexibility benefits everyone," according to the U.K. Department of Trade and Industry.
Flexibility both in benefit provision and working conditions is certainly becoming more accepted among employers in the United Kingdom, according to Charles Cotton, reward adviser for the London-based Chartered Institute of Personnel & Development, a professional association for human resource managers.
Flexible benefits, whereby employees can choose from a range of benefits according to their preferences, including medical insurance, vacation time and automobile allowances, have been offered by larger companies and those in competitive industries such as the financial, information technology and consulting sectors for some time now, said Mr. Cotton. But advancements in administration software, a change in the tax system and a competitive workplace are encouraging more companies to adopt flexible benefits, he noted.
Demand for flexible benefits and working conditions has increased markedly during the last year, partly because of the new working laws and increases in National Insurance, said Kim Plummer, flexible benefit director for Gissings Consultancy Services Ltd. in London. National Insurance is an income-related tax imposed on employers and employees to help pay for the state-run National Health Service and pension system.
By introducing flexible benefits, employers can improve employees' total remuneration, including pension and other benefits, with little increase in...