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Vodafone Business Zoom: Mobile phones are among the most frequently awarded employee benefits, alongside meal tickets and extra holiday time

23. January 2008

When hunting for new employees, firms very often attract candidates with mobile phones in addition to traditional bonuses. This year 61 percent of firms gave these to all or selected employees. Many of them, however, place a fixed limit on private calls. Fifty-five percent of firms award all or some employees with an extra week of holidays. Meal tickets are the most frequently awarded benefit – 63 percent of firms provide them to all or selected employees.

When hunting for new employees, firms very often attract candidates with mobile phones in addition to traditional bonuses. This year 61 percent of firms gave these to all or selected employees. Many of them, however, place a fixed limit on private calls. Fifty-five percent of firms award all or some employees with an extra week of holidays. Meal tickets are the most frequently awarded benefit – 63 percent of firms provide them to all or selected employees.

These are results from the latest Vodafone Business Zoom online survey, in which 402 company owners and top management took part. Data Collect conducted the survey for Vodafone.

Most firms (55 percent) give their employees monthly benefits of up to a thousand crowns. Twenty-one percent of firms give their employees benefits in the amount of 1,000 to 1,999 crowns, seven percent provide 2,000 to 2,999 in benefits, and 17 percent of firms give their employees over 3,000 crowns in benefits on top of their monthly salary.

Only a few firms that give employees mobile phones also give them unlimited calling.

  • Only six percent of these firms allow their employees to make over 1,000 crowns per month in private calls.
  • A tenth of firms set a limit between 500 and 999 crowns for private calls.
  • Thirty percent of firms set a limit of 500 crowns.
  • A quarter of firms stated, without giving specifics about an exact amount, that their employees do not have to pay for their private calls.
  • Thirty percent of firms stated that they do not pay for their employees’ private calls.

Other survey findings

Out of all expenses, this year firms are most concerned with a rise in expenses on employees. This was expressed by 44 percent of the owners and top managers of the firms that were surveyed. These companies are also concerned about expenses for raw materials and other acquisitions (25 percent of respondents), and expenses for electricity (20 percent).

Sixty-four percent of firms are increasing employee salaries this year. Most of them will do so by one to five percent (50 percent of respondents). Only three percent will increase salaries by more than ten percent. Nearly a third of firms will not increase salaries at all this year.

Over two fifths of firms (44 percent) plan on hiring new people. Just under half of the respondents do not plan on increasing their personnel. Roughly a tenth of firms state that they will be laying off staff.

Firms are optimistic about this year. More than half of the survey respondents expect that 2008 will be better than previous years (66 percent). Eleven percent expect this year to be worse. Most respondents expect dynamic growth this year (47 percent) or stagnation (49 percent). Firms are not very worried about collapses this year.

This year, firms will save more on the most common benefits. In 2007, 57 percent of firms provided all their employees with meal tickets; in 2008 52 percent will give these to all employees. According to the survey, reductions will be made in such a way that more firms will only give meal tickets to some of its employees. In 2007, eight percent of firms gave meal tickets to selected employees. In 2008, 11 percent will distribute meal tickets in this way.

On the other hand, more employees will enjoy an extra week of holidays. Last year, 35 percent of firms gave all their employees an extra week of holidays; 14 percent did this for at least some of their employees. In 2008, 37 percent of firms will give all their employees an extra week of holidays; 18 percent will do this for selected employees.