The global landscape for businesses is constantly changing. The pandemic halted how businesses usually operate and has ushered in emerging trends to foster more productivity such as flexible benefits plans.
Then again, workforce productivity challenges linger as a result of regular changes are implemented. According to a report by Careers in Government, employee trust in employers and managers is shockingly low, with one-third of employees thinking about changing their jobs.
Employers are grappling with this palpable reality:
There are experienced workers shifting their retirement to a much later date due to the uncertainty of the economy. On the other hand, there are many young people with little or no experience or skill sets to be productive.
Businesses need to be properly staffed with the best people to thrive in a sea of competition. To retain top and fresh talents in your business, your compensation and benefits must be attractive enough to convince them to work for or stay with your business.
According to Harvard Business Review, employers could be dealing with five different generations of employees sharing the same workforce. Due to the nature of the diversity, you will most likely face a mix of age groups, nationalities, and races in the workplace.
Thus, a generic benefits package is not suitable and will not satisfy the expectations of your employees. Employers are becoming more aware of this and are ditching one-size-fits-all benefits. You, as a business owner, should implement diverse, flexible benefits to attract and retain a productive workforce.
According to a Glassdoor study, 60% of people opined that benefit is an alluring factor in deciding to work for a business. Additionally, 80% of them are willing to accept more benefits than a pay rise.
According to a Willis Towers Watson survey, 98% of employees are open to the idea of choosing their own benefits, rather than have employers deciding for them. Employers typically frown at this. It would almost seem that they are giving ‘too much power’ to their workforce.
But that is not the case. Allowing workers to make decisions on how they want to be compensated goes a long way in improving job satisfaction. Which will affect the growth of your business.
Flexible benefits, otherwise known as flex plans, is letting your workers choose from a list of benefits to suit their desires. Or they can simply choose how they want their remuneration to be paid.
Advantages of Flexible Benefit Packages
There are benefits you can gain from this as an employer. Some of them include:
Retain seasoned employees
As a business owner, your most prized asset is your workforce. A transparent and comprehensive benefits package means you would be able to attract and retain the experienced and skillful workers who would give their best.
According to another Willis Towers Watson report, 75% of employees are likely to remain working with a company because of the benefits they receive from them. If your business offers an array of flexible benefits for employees to choose from, the best people are going to remain working in growing your business.
The loyalty of your workforce is crucial for business longevity. A flexible benefits package is the most efficient solution in fostering loyalty. Turning seasonal employees into full time can also reduce many business expenses, i.e,. training, HR expenses, etc.
Boosting employee morale and engagement
Offering a flexible benefits package to your workforce means you value them enough to choose what works for them. This will definitely instill a feeling of trust, boost their morale and foster a more engaged workforce.
An engaged workforce is what every employer needs in their business. A study revealed that 68% of employees who are satisfied with their benefits packages are also satisfied with their jobs, compared to 5% of workers who are satisfied with their jobs and not their benefits.
One can easily deduce that offering flexible benefits is key to job satisfaction and employee engagement.
Ability to streamline benefits cost
When you give your workforce the opportunity to choose their benefits, they would only pick the benefit that is relevant to them. This will save you from spending on benefits that are not useful to your workforce. By doing so, you can reinvest the funds into the strategic/marketing process to grow your business.
Offering flexible benefits is a win-win for both you and your employees. By so doing, you are guaranteeing optimal productivity, lower turnover, employee engagement, and loyalty. It does not get better than that.
Let us know if you would like to discuss how business owners can benefit from offering employees more flexible offerings.
Published by Marc Freedman
Marc currently serves as our Chief Cost Evaluator, expertly advising our client management team on how to help you successfully achieve your business and financial growth goals. A respected mentor to all he consults with, he is an avid collaborator and contributor to the spend consultant community, guiding thought leaders to formulate, design, and install the best operational solutions available to their clients.