Introduction
Flexible benefits, also known as flexi benefits, allows employees to choose their preferred choice of benefits from a pool of options set by the employer. Potential options include increasing EPF percentage contributions, leave amount, and comprehensive insurance. Options offered are often determined by the management upon seeking opinions from employees to attain the highest satisfaction rate.
Generally, benefits plans have been provided on a “one size fits all” basis (fixed benefits) and often created to meet the perceived needs of typical employee wellbeing. However, the rapidly changing needs of employees and the advancement of technology have contributed to a growing demand for flexible benefits to be in place.
Below are the top four reasons why flexible benefits matter in 2021 (perhaps later years!).
1. Cost
Offering flexible benefits doesn’t have to cost an arm and a leg. Rather than providing benefits that your employee does not utilize or appreciate, it is essential to analyze your employee demographic and deliver what they genuinely need to improve their healthy beings.
Many affordable benefits options deliver high value. Options such as flexible working schedules, remote-work options, extended maternity and paternity leave are some of the most common options adopted by companies.
2. Competitiveness
Providing flexible benefits is an excellent way to increase the competitive edge of your company. Employees place high importance on benefits, and for some, benefits packages can be the deciding factor between two jobs. The positive effect on flexible benefits goes much further.
Generally, salary increments or promotions are often used to reward an employee with extraordinary performance. However, there may be better options that deliver higher value than offering monetary rewards. According to a study conducted by MetLife, 72% of employees said having flexible benefits increase their loyalty to their employer.
3. Stop the guesswork
Your employees know what type of benefits will best cater to their needs. When an employer offers flexible benefits, he or she doesn’t have to create a “one size fits all” plan to satisfy every employee.
Alternatively, you can leave the choices up to employees to decide. Rest assured, employees will be getting the proper benefits to assist their healthy beings, budgets, and personal and professional happiness.
4. Employee satisfaction
Every employer wants their employee to be happy to produce top productivity. To accomplish this, employees need to be healthy, whether physically or mentally. By providing medical insurance included in the flexible benefits plan, routine check-ups became more accessible to them. Thus, preventing serious illnesses from happening and treating them on time.
While offering an extensive flexible benefits plan may seem like a high cost at the beginning and indeed may incur more significant investment at the end, the long-term advantages to the business outweigh those costs - and contribute to the overall company and its success. Businesses looking to build a stable workforce and position themselves as leaders in employee engagement should consider an extensive flexible benefits plan.
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