Setting up an ESOP can be complicated, but working with qualified advisers will help you move through the process efficiently. The workforce is growing increasingly diverse. Employers are coming to realize that satisfying employees through a single benefit program is a difficult task indeed. People work for a variety of reasons and what motivates one employee will not necessarily motivate another. While Employee A may appreciate a generous vacation plan, Employee B may value health insurance more, and Employee C may be concerned about retirement.
Employers benefit as well through tax savings.
The first flexible benefit programs were implemented in 1974 by the Educational Testing Service and a division of TRW, an automotive products remanufacturing company in Cleveland, Ohio. American Can, a packaging company, then developed a program that was tested in 1978 and started in 1979. Since then, a number of companies have established flexible benefit plans. These plans accommodate the needs of today's workforce by allowing individual choice from among several benefit options. They are not forced to accept fixed benefits as part of a standard employment package.