Flexible benefit packages affect an employee's preference between higher wages and more benefits, because flexible benefit yields more satisfaction than higher wage. Consumers prefer to have more of a good rather than less, and the benefits package offers more utility than just higher pay.
For example, a package of benefits that an employee would choose depends on his/ her personal situation. A single, young, healthy person with no dependents would be satisfied with a higher salary and a basic benefit package. But, an employee with a family and a medical history, would choose more benefits than a higher salary, so that his family will be taken care of, and ensure that should he suffer injury while at work, his disability income would cover the costs incurred while being unemployed and more vacation time would mean spending time with family.
For an employee who plans to retire soon a flexible benefit package which include higher company payments to the retirement fund(more benefits), would be preferable than having to seek higher wages- to cover retirement