Less than 40 per cent of personnel directors receive a company car as part of their job, according to a survey of 2,000 human resources staff.

The survey by Croner Reward found that changes in the area of company car taxation had led many human resources (HR) workers to accept cash rather than a car. The number who receive a company car has dropped from 62 per cent in 1999 to 37 per cent now.

The survey was done in association with the Chartered Institute of Personnel and Development (CIPD). Mr Stever Flather, managing director of Croner Reward, said: "Changes to company car taxation have left individuals with a choice of doing without or swallowing hard."

The survey also found that pay in the sector compared favourably with the national average. The gender gap in terms of pay rates was just 1 per cent, compared to about 30 per cent a decade ago.

The survey found that skills shortages and retention problems are the biggest challenges facing "people managers".

Mr Charles Cotton of CIPD said the relatively high levels of satisfaction and pay settlements showed that the personnel profession was a rewarding one.

"This is hardly surprising given the capacity for people managers to make a positive difference and contribution to their organisations.

"With so many topical issues on the agenda such as pensions, equal pay, work life balance to name but a few, people managers have never been in a more influential position."