As a result of diverse workforce, different employees valued different benefits. Offering identical benefits package to all employees, such as traditional benefit plans, would not likely satisfy all employees. On the other hand, the flexibility of flexible benefit plans can better fulfill various needs of employees. By comparing these two benefit plans in the diverse workforce environment, flexible benefit plans can better meet the unique needs of different employees, and increase their satisfaction. This will give the organization advantages in recruitment and retention. Moreover, flexible benefit plans tend to be more efficient than traditional benefit plans and it proved higher controllability in employer contribution to benefit plans. The employee self-selected feature of flexible benefit plans result a better understanding of benefit and its costs, thus prove a better communication of benefit and their job satisfaction.
Flexible Benefit Plans
Flexible benefit plans refers to a benefit program that offers employees a choice between various benefits including cash, life insurance, health insurance vacations, retirement plans, tax advantages, and child care. Flexible benefit plans are an attack on traditional benefit plans. Calling them 'flexible' makes them sound better than they really are. Flexible plans are also referred to as 'Cafeteria, "Supermarket" plans.
The Impact of Flexible Benefit Plans on Employee Satisfaction Flexible benefit plans engages employees who are involved in shaping their own package which impact on their job satisfaction. Improved employee communication is a key benefit offered by flexible benefit plan. It offers a good news story that can be continually promoted and the nature of the plan structure allows new benefit initiatives to be adopted on a regular basis.
There are several 'softer' issues supporting flexible benefits. There is no doubt that most employees appreciate choice, although in some...
Bibliography: 1. Joseph J. Martocchio. Stategic Compensation, A Human Resource Management Approach, Flexible benefits plan. P-278.
2 http://www.cambridgenetwork.co.uk/directories/companies /78/products(655)
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