What Are Flexible Benefits Plans?

Flexible benefits plan refers to "the company provides a variety of optional welfare items within the approved per capita annual welfare budget, and gives employees the right to choose freely. Employees can independently select welfare products or product combinations based on the needs of themselves and their family members. A welfare management model. "

Flexible Benefit Plan

Right!

Flexible benefits plan refers to "the company provides a variety of optional welfare items within the approved per capita annual welfare budget, and gives employees the right to choose freely. Employees can independently select welfare products or product combinations based on the needs of themselves and their family members. A welfare management model. "

Chinese name

Flexible Benefit Plan

Features

Give employees the right to choose

Nature

A welfare management model

Common in

Working salary

The biggest difference between the "flexible benefit plan" and "traditional benefit plan" is that it gives employees the right to choose and decide, which meets the individual needs of employees to the greatest extent, and greatly improves employees' perception and experience value of benefits. Flexible benefit plans are often referred to simply as "

origin

Flexible benefit plans originated in the United States in the 1970s and were originally created in response to changes in employee structure, such as the increase in female employees. In the 1980s, due to the increase in health care costs, companies' demand for flexible benefits expanded rapidly from the perspective of cost control. To this day, flexible welfare has become a common welfare operation method for enterprises in western countries.

Becoming popular in Asian countries

Flexible benefits programs have also become popular in Asian countries in recent years. A survey conducted at the Global Welfare Benchmarking Database Symposium in February 2010 showed that flexible benefits are welcomed by companies as a flexible way to manage benefits: more than 84% of respondents said that flexible benefits are currently their most interested How Welfare Works.

Development Trends in China

In recent years, there has been a serious imbalance in the supply and demand of talents in Chinese enterprises, and labor costs have increased year by year. How to attract and retain talents is a major problem in the survival and development of enterprises. Obviously, unlimited cash increases

Meet the individual needs of employees

Since each employee's personal situation is different, their needs may also be different. For example, younger employees may prefer to pay benefits in monetary terms, employees with children may wish to provide childcare benefits to the enterprise, and age Large employees may pay special attention to pension and medical insurance.

In traditional welfare plans, enterprises, as buyers of benefits, also exercise the right to make decisions on benefits plans. Employees, as consumers of benefits, are not given the option. Therefore, this unified and standardized benefit plan arrangement for all employees can't meet the individual needs of employees, which directly leads to the employees' experience value and benefits plan.

First, it creates management complexity. Since the needs of employees are different, the free choice greatly increases the types of benefits implemented by the enterprise, which increases the workload of statistics, accounting and management, which will increase benefits.

A good flexible welfare system must meet the following requirements:

1) Appropriate. That is to say, the welfare level of an enterprise must be competitive externally and not lag behind other enterprises of the same industry or type; internally, it must conform to the strategy, scale, and economic strength of the enterprise, and do not make welfare a financial burden on the enterprise.

2) Manageable. That is to say, the welfare projects designed by enterprises are realistic and can be implemented; at the same time, a complete operating system is required for implementation and supervision.

3) Easy to understand. That is, it is required that the design and expression of each benefit item can be easily understood by each employee, and there will be no ambiguity when selecting and enjoying the benefit item.

4) There are measurable standards. That is to say, every benefit item provided by the company to employees is measurable, so that each employee can choose the benefit item within its own limit.

5) High employee participation. That is, the design of the system is required to include channels and rules for interaction between the company and employees.

6) Flexible. That is, the welfare system is required not only to meet the individual requirements of different employees as much as possible, but also to make effective self-adjustment according to the business and financial conditions of the enterprise.