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Flexible Benefits Plan (Flexible Work Arrangements (Flexi-time, Compressed…
Flexible Benefits Plan
Purpose
- Gives employees freedom of choice
- Enables the employer to set aside a budget and stick to it
- Provides the organisation with greater rate stability
- Helps to position an organisation as a leading edge employer
Definition
Where the employer gives the employee a fund budget, and lets the person spend it on the benefits they prefer, subject to two constraints.
Advantages
Organisation
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- Recruitment and retention
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Employees
- Control of benefits and expenses
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Disadvantages
Organisation
- Set-up costs are very expensive
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Challenges
- Balancing added responsibilities with day-to-day duties
- Helping employees understand benefits
- Appealing to different demographics
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Types of benefits plan
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- Flexible spending accounts
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