Companies spend millions annually on employee benefits, however most employees don’t fully understand, let alone appreciate their value.
Many employees, if given the option, would prefer to choose benefits that matter most to them.
What are Flexible Benefits?
Flexible benefits give employees the opportunity to choose the types of benefits they prefer from a package of programs offered by an employer.
Every employee has different needs, so what may be important in terms of benefits for one employee could be very different for another, depending on their stage in life.
An employee in their twenties may look at benefits like travel and gym membership as being important, where as an employee in their forties – fifties are likely to look at health insurance or a pension as being the most vital benefits that a company can offer.
Flexible Benefits can be found in different formats;
1: ‘Flexible Voluntary’ – Where the employer provides a ‘core’ level of Employer Funded benefit and the employee can choose to ‘Voluntary’ increase their benefit (eg to upgrade cover or add family members).
2: ‘Flex’ – where employees have the choice and flexibility to exchange their salary or increase or decrease ‘core’ levels of benefits.
3: ‘Flexible Benefit Allowance’ – This is when the employer provides an ‘allowance’ from which the employee can choose to ‘buy’ the benefits that best suit them.
Depending on the design of your Flexible Benefits package, discounted purchase prices and ‘Salary Sacrifice’ – (also known as Salary Exchange or Salary Deduction) can result in additional advantages for employees.
Why should you offer them to employees?
Traditional Employee Benefits have a ‘one size fits’ all approach. Flexible and Voluntary benefits are becoming increasingly common. They can help an employee create a personal package of benefits to suit their needs and help improve their engagement.
Flexible benefits give you the ability to recognise the diversity amongst your employees and provide a benefits package which is relevant and engaging to your employees.
Providing voluntary benefits or perks such as employee discounts and cashback allows employees to pick and choose what they use and when. In addition, recruitment and retention can be boosted by giving employees a better range of benefits available and by allowing them to choose which ones matter the most to them.
Many candidates are now considering the overall company package that is being made available to them, this not only includes the annual salary but also the types of benefits provided. Having flexible benefits in place could be the answer to recruiting top talent and to retaining your current employees.
Allowing employees to choose their benefits shows a level of trust and care from the employer, which in turn will increase employee satisfaction and value.
How to manage Flexible Benefits?
One of the biggest barriers for employers to offer flexible benefits, is the administration burden involved in setting this up and managing it for each employee.
However, this administrative burden can easily be resolved by having the right technology in place. A HR system with an Employee Benefits solution, which allows for flexible benefits, can make implementation and management easy, accessible and efficient.
How we can help with Flexible Benefits..
Our HR & Employee Benefit Software Solution can help you to manage all of your employee benefits in one system. As a business you can keep track of the overall spend on benefits and details on each benefit.
Our system can be used for HR and Employee Benefits or Employee Benefits only, and accommodate each of the different types of flexible benefits, making it easier than ever to introduce flexible benefits to your employees.
The employee experience is important and your employees will be able to interact and manage their benefits 24/7 from anywhere in the world via our platform which is available on desktop, mobile or mobile app and will be branded with your logo.
They will be able to use our simulator to assess the effect of their benefit choice and will also have access to a personalised ‘Total Reward Statement’ which provides further transparency and can help with employee retention when they realise the full value of their employment package.
Our software was created by employee benefits and insurance professionals who will also be available to assist you with all your employee benefits needs.