Flexible Benefits

Within the last five years, flexible benefits schemes have become more common in the UK and a further 14% of employers will be adopting a flexible benefits plan within the next 12 months.²

Flexible benefit schemes allow employees to vary their pay and/or benefits package in order to satisfy their personal requirements, without impacting on the employer's financial contribution to reward.

In addition to introducing flexible benefits schemes to help increase the perceived value of the reward package offered to employees, flexible benefits can provide the following advantages:

Employees choose benefits to meet their needs, and value these benefits more highly.
Employers and employees share the responsibility for providing benefits.
During periods of change (including merger and acquisitions), flexible benefits help to harmonise rewards.
Employers provide benefits at a known cost that is fixed regardless of the choices that employees make, so allowing them to cap future benefit costs.
Employees have a true idea of the full worth of the benefits package they receive and employers do not provide benefits that are not valued.
Employees are given a sense of control and involvement by having a choice.
Dual career couples avoid having benefits duplicated by their respective employers.
Employers are seen to be more responsive to the needs of an increasingly diverse, demanding and ageing workforce.
A competitive benefits package is valuable in attracting and retaining key personnel.
The awarding of benefits such as company cars becomes less divisive.
Employers' demands for flexible working practices are more justifiable if employees enjoy flexible benefits.
Helps to align the total reward strategy to the HR and business strategies.

Before drawing up a flexible benefits plan, it is important to fully consider the reasons for adopting this approach.

For further information on any of our flexible benefit plan and IT platform, Please contact our Winnersh branch.

Tel: 0118 912 5901
Email: HCE@tlrisksolutions.com
Address: TL Risk Solutions Healthcare, 120 Wharfedale Road, Winnersh, Wokingham, RG41 5RB.

Source 2: CIPD website.