IT companies are set to give employees more bonus payouts and other benefits in an attempt to retain, recruit and motivate staff, research shows.
Up to 77 per cent of IT companies intend to pay a staff bonus in 2005, according to the Intellect Employee Benefits Benchmarking Survey 2004. The main HR challenge was retention of staff and improving morale.
The research of 100 IT companies, commissioned by financial adviser Thomsons Online Benefits, also looked at different types of benefits including share schemes, overtime, company cars and health packages.
Of those IT firms paying a bonus, nearly three-quarters (72 per cent) of respondents said they would offer a bonus for company performance, while 61 per cent said they would pay out for individual performance. Up to 60 per cent plan on offering a pay rise this year in line with inflation.
Seventy-three per cent of the IT companies admitted they had reviewed their employee benefits strategy within the past year and almost half of those companies were prompted by staff retention issues. Another third reviewed their benefits strategy in a bid to get better value for their budget.