IT employees are set to receive more payouts, benefits and schemes this year as employers attempt to retain, recruit and motivate staff.
Up to 77% of IT companies intend to pay a staff bonus in 2005, according to research published in the Intellect Employee Benefits Benchmarking Survey 2004 in conjunction with financial adviser thomsons online benefits.
The research of 100 IT companies 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%) of respondents said they would offer a bonus for company performance, while 61% said they would pay out for individual performance.
Up to 60% plan on offering a pay rise this year in line with inflation. The main HR challenge was found to be retention of staff and improving morale.
The study showed that IT companies were re-assessing the role that benefits played in the retention, recruitment and motivation of staff.
Seventy three per cent 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.