A Guide to Flexible Benefits: Packages, Perks & How They Work

Many companies use traditional benefit systems in which all employees receive the same benefits. All employees have their own personal needs and preferences; some need health care, while some want flexible time or learning benefits. So, the “one-size-fits-all” approach did not give importance to the personal needs of employees and caused demotivation.

Here you can use the concept of flexible benefits, which you can use for boosting employee engagement. Employees can choose the most suitable benefits if you provide a wide range of benefits and give them individual ownership over schemes they engage with. It not only increases the productivity in your organization but also helps to boost loyalty and job satisfaction.

What are flexible benefits?

Flexible benefits help employees to choose the benefits they want instead of a fixed package of benefits. As everyone has their own needs and a fixed package cannot fit the needs of all, using flex benefits for individuals can help employees to focus on what they really need, which enhances employee experience and boosts productivity.

What is a flexible benefits package?

A flexible benefits package is the set of benefits that an employee chooses under the company’s scheme. Employees have their individually selected benefits rather than enrolling all in one set.

For example: An employee may prioritize child education support, while the other employee may prefer mental health and fitness benefits.

How does a flexible benefit plan work?

In a customized benefit plan, employees contribute to the cost of benefits by deductions from their salary before tax. It helps them to invest in such benefits, which are valuable for their lifestyle, such as a gym membership. It also helps in the reduction of taxable income, and employees have to pay lower taxes.

Instead of automatically enrolling employees into each scheme, employers usually leave the decision on employees to pick a suitable benefit. It is done manually or digitally (through software), but because the manual processes are slow or cause errors, most employers are shifting to software that easily provides these types of features.
All-in-one platforms like Zelt HR are the best examples of such software. It allows the employees to receive the benefits that suit them most by managing through the platform.

What to include in a flexible employee benefits package

It is totally up to you what benefits you include in your scheme. Workers have to spend a significant amount of their income on expenses such as childcare and transport. Flexible employee benefits play an important role by reducing these expenses, which gives them relief and makes their lives a little easier.

Below are some popular flex benefits:

• Gym memberships or free classes
• Buying or selling annual leave
• Private health and dental plans
• Pension contributions
• Transport benefits
• Season ticket loans
• Cycle-to-work schemes
• Workplace nurseries

You should consider the personal needs and preferences of your employees so you can offer them the benefits that actually suit them.

Flexible Employee Benefit Allowances

Flexible Employee Benefit allowances mean a set amount given to the employees to choose the benefits according to their needs, such as gym membership, health insurance, childcare, etc.

That said, the company gives a flexible fund to the employee, which he can use to spend on the benefits useful for him. Zelt allows you to set flexible allowances per employee or role.

Advantages of flexible benefit schemes for employers

Obviously, these packages mostly benefit the employees, but there are also many advantages to employers of offering them. Some of them are listed below:

• Higher employee retention
• Gain valuable insights into employee preferences
• Greater flexibility
• Reduced absenteeism
• Improves talent attraction and recruitment
• Better company branding
• More efficient use of benefit budgets

Advantages of flexible benefit schemes for employees

Much like other traditional benefits schemes, these flexible schemes offer even more advantages to employees. Here are some advantages:

• Better financial planning
• Employees feel more engaged at work
• Healthier, more active lifestyles
• Improved satisfaction and well-being
• More control and personalization
• Tax advantages
• Support for unique life circumstances

Conclusion

Giving your employees the freedom to choose the benefits according to their needs is a great way to boost productivity and job satisfaction. Customizable perks are beneficial for both employees and employers instead of traditional benefit systems in which all employees receive the same benefits.

If you are looking to implement the flexible benefits scheme for the first time or already set up, having the right tools like Zelt can save your time and money. From tracking frequently used schemes to easily accessing each employee’s benefits, Zelt can manage your flexible benefit package effectively.

Want to see how Zelt can transform your employee experience? Schedule a free demo.