In order to meet the various desires of employees the concept of a 'flexible benefits' package has been developed. The basic idea is that all the benefits offered by the employer are given a monetary value. The employees then pick the benefits they want, provided the total value of the benefits and salary does not exceed a certain level. For instance, an employee could take an extra week's holiday for a corresponding reduction in salary or, alternatively, give up a week's holiday for a corresponding increase in salary. As mentioned above, if employees do not want a benefit they are receiving, then the benefit is neither providing motivation nor reward to the employee.
Flexible benefits enable the employer to target benefits to individual employees.
This means benefits are not being wasted and the employee will feel an increase in the reward they receive from their employer. Therefore, both the employer and employee gain. Wide range of benefits Cars and holidays are the two obvious benefits which can be flexed. There are many other possibilities. Implementing a scheme The correct implementation of a flexible benefits scheme is crucial to its success.