The Impact of flexible benefit plans on employee satisfaction Submitted To
Mr. Prof. DR. Moazzem Hossain
Department of Finance
Premier University, Chittagong
Name: Pujan Chanda
Student ID # 1021114104
Sub: Compansation Management
BBA, Major in HRM
Faculty of Business Studies
Date of Submission:22nd July, 2014
In today’s day and age, compensation packages have evolved to include perks and benefits that were unheard of a generation ago. With the world progressing and people’s wants and needs shifting, in order to stay competitive in order to attract, retain and motivate the kind of people who are committed to the success of an organization, it may necessitate a complete flexible compensation system. “Rethink, redesign and rebuild.” This is what came by 2010 World Economic Forum in Switzerland, employers also need a program that help increase productivity and reduce costs but traditional programs don’t reward employees for cutting costs or increasing profits, flexible benefit plans, have responded to this need. Over the last 35 years, flexible benefit plans have gradually appeared in response to this growing diversity in the North American workforce, Canada, Europe and Asia. Research results suggest that employee motivation is enhanced in the presence of a flexible benefit plan and that flexible benefit plans may increase employee satisfaction. Advocates have also argued that these plans can help firms increase employee understanding of benefits and unify benefit programs, more frequently mentioned is the argument that these plans can help firms contain costs. Employees who were satisfied with the benefits they received were more likely to be committed to the organization. Studies show that the absence of adequate benefits and efficiency reward program for employees contributes to his dissatisfaction. However, the employees must understand how their involvement and attitudes affects the company’s profits. On the other hand, employers are more concerned with the impact benefits may have on their company and its profitability.
In an organization perspective, compensation is often viewed as an important human resource management function where it emphasizes planning, organizing, and controlling various types of pay systems. Indirect financial compensation which is called benefit; it can be defined as all employers provided reward and services, other than wage or salaries. According to and Under the traditional benefits plan, all employees are given the same fixed bundle of benefits that is usually decided by the firms without employees’ involvement and output; these benefits suppose to meet the perceived needs. However in today’s day and age, compensation needs to update its packages. Studies also have shown that many variables such as age, sex, marital status, number of dependents, and years of services, can influence employee preferences for certain rewards, according to demographic variables, satisfaction and organizational commitment are also varies from person to person. Studies have also shown that the more progressive organization needs the more flexible structure. New approaches is more consideration to this change is flexible benefits plan, Cafeteria plans provide a “menu”, or choice of benefits from which employees select As define flexible benefit plans as those that offer employees a choice between qualified (nontaxable) benefits and cash. FBPs have been on the increase in organizations to give employees more say over the conditions of their job, and to make the benefits better suited to the diversity of life-styles of their employees.
Employees’ benefits satisfaction
Pay satisfaction and attitudes towards benefits have emerged as popular variables for use in organizational research. Research has shown that to influence employee attitudes is the...
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