As the labor market continues to tighten and with medical costs on the rise, the use of such plans is expected to gain in popularity as employers attempt to attract and retain qualified employees. In addition, workers' compensation, federal unemployment, and in most cases state unemployment taxes, will be lower. Hiring an Outside Firm Without question, the process of analyzing and redesigning the method by which an organization will provide its employee benefits is a complicated one. That is the main reason employers tend to retain outside assistance when implementing a flexible benefits plan. When an outside firm with a great deal of experience in implementing these types of plans is used, the process is usually simplified for the employer by bringing that expertise to bear on the organization's unique situation.
Communication is key It is important to avert employee resistance.
A flexible benefits plan forces employees to step away from passively receiving their benefits and begin to participate in the benefit selection process. A flexible benefit plan dramatically reduces the likelihood of an employee blaming your organization for providing an unwanted or under-used benefit. This new concept of participation in the decision- making process is sometimes a difficult one for employees at first. Honesty and good communication will help address employee concerns. Written materials and meetings give your employees the opportunity to become informed and to discuss any aspects of the plan that may make them uncomfortable.