Flexible benefits: What they are and why implement them in your company
26 de October, 2023
The labor market is currently made up of four generations of workers. Because they are at different stages of life and have very different needs and objectives, these workers value different aspects of the benefits offered by companies.
The answer to this broad spectrum of needs and expectations invariably involves flexible benefit plans. Find out what they are and why you should implement them in your organization.
What are flexible benefits?
Flexible benefits are a complement to financial remuneration and aim to guarantee access to certain goods and services that are valued by employees according to their stage of life, objectives and needs. These benefits are flexible because they allow each employee flexibility in choosing when to use them.
Some examples of flexible benefits could be, for example:
- Childcare benefits (for employees with children up to the age of 6);
- Education support benefits (for employees with children aged 7 and over);
- Benefits that support the employee’s own training and professional development;
- Benefits linked to the health and well-being of the employee and their family (which help to cover expenses in hospitals, pharmacies, nursing homes, among others).
- Other benefits.
Why offer flexible benefits in your company?
The popularity of flexible benefits has increased in recent years and the flexible benefits plans offered by companies are increasingly valued by candidates when it comes to embracing a new professional challenge.
By offering flexible benefits, organizations show that they care about their employees – about their satisfaction and well-being – and that they are willing to invest in their future.
The main advantages of flexible benefit plans are:
- They help attract and retain talent: flexible benefits are increasingly important for companies to remain competitive in their industry, both when it comes to hiring new employees and reducing turnover. According to a MetLife study, 72% of employees surveyed say that having flexible benefits increases their loyalty to the company.
- They boost satisfaction, commitment and productivity: once employees feel more valued by their employer, their motivation and involvement tend to increase.
- They promote tax savings for the company and the employee: since we are talking about extra-salary benefits with associated tax advantages, tax optimization is a very important aspect to consider. The company is able to increase the value of the remuneration package without increasing the tax burden and, at the same time, the employee has greater purchasing power to cover expenses that can represent a large slice of their budget.
- They improve employer branding: the number of professionals who value flexible benefits is growing every day, so including them in your company’s EVP (employee value proposition) helps to build and maintain a positive image of the organization in the job market.
In short, implementing a flexible benefits plan in your company will bring numerous advantages. Together with other measures and strategies, it can help convey that the organization has a culture that puts people first.
So if you don’t already offer flexible benefits to your employees, the first step is simple: start by asking them what kind of benefits they value and would like to receive.