Flexible Benefits: its effects on employee and organisational outcomes

Flexible Benefits: its effects on employee and organisational outcomes
Abstract
The primary purpose of the present study was to examine organisational and individual outcomes of implementing flexible benefits. The current study has presented evidence on some of the main reasons why firms have (or have not) adopted flex benefit plans. The use of the benefits model has made links to the external and internal environmental drivers of benefit preferences and has stated that these drivers play a vital role in pushing organisations to adapt to flexible benefit plans. The main driver explained in the review is the changing composition and evolving values of current workforce. Examinations of literature revealed that flexible benefits have a constructive effect on organisational outcomes and individual behaviour from psychological and economic perspective. From psychological perspective, areas such as job satisfaction, organisational commitment, psychological contract and role of flexible benefits to deliver organisational equality are covered. Economic gains with the help of social-exchange theory is explained which suggest that employees feel obliged to give in return to the employer in exchange of the valued benefits. Other financial benefits such as lower labour turnover, decrease in absenteeism rate and more appreciation of their benefits is gained through such benefits. Although there are still problems associated with the implementation, administration and issues concerning trade unions. Nevertheless, the changes in labour force composition and worker values may enhance the importance of flex plans over the next few years.

Contents
Purpose……………………………………………………………………………………………………………………………….…………..3
Methodology…………………………………………………………………………………………………………………….……………..4
Flexible benefits: Meaning………………………………………………………………………………………………..……………..5
Drivers of Flexible benefits…………………………………………………………………………………………….….……………..5
Individual and organisational outcomes

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