What are flex benefits and why are they important?
Providing flex benefits, or flexible benefits, is a smart reward strategy that enables employees to select from a variety of options that best suit their personal needs and life stages. Our research shows that simply offering a range of benefits isn't enough. Employees value the ability to tailor their benefits packages, ensuring they receive the most relevant support for their current situation.
According to our Europe-wide survey, only 28 % of employees are satisfied with the flexibility of their reward package. Not to mention, just 18% of employees can customize their reward package based on an allocated budget (known as a ‘cafeteria plan’), while a significant 42% would prefer this option.
Different life stages and personal circumstances mean different benefit preferences. For instance, younger employees might prefer study and training days, as they are in the early stages of their careers and have much to learn. They also might favor variable salary options (cash) to manage high expenses such as rent, purchasing a home, or raising children. In contrast, older employees might prioritize robust pension plans and insurance options to secure their future post-retirement.
By implementing a flexible benefits platform, employers can greatly enhance employee satisfaction and financial well-being. These platforms can vary from off-the-shelf SaaS solutions, which provide a quick and easy setup, to bespoke platforms tailored specifically to your organization’s structure and requirements. This flexibility ensures that employees have access to benefits that truly matter to them, enhancing satisfaction and financial well-being. As a result, companies can enjoy a more engaged and productive workforce, where employees feel valued and supported.
Related articles
BLOG
Where should you start with achieving pay transparency?
Getting started with pay transparency means kicking things off with clear and open communication about your reward policies. While many companies are already diving into this, there’s still plenty of room for improvement. Our research shows that fewer than two-thirds of employers are fully up-to-date on the legal rules around pay transparency, which should be the backbone of your approach. So, where does your company stand compared to the rest?
2024-09-18
Podcast
Reward | True Pay Transparency
Join us for the final episode of the Sparking Reward Navigator Podcast, where Bruce Fecheyr-Lippens, People director and Pieter-Jan Boden, Reward director delve into the intricacies of achieving true pay transparency and equity.
2024-09-18
Podcast
Reward | Flexible benefits for all
In Episode 3 of the Sparking Reward Navigator Podcast, join Bruce Fecheyr-Lippens and Pieter-Jan Boden as they delve into the importance of personalizing reward packages for employees.
2024-09-18