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The spread of flexible benefits in the UK is finally living up to the hype, with a third of UK employers now having or are actively considering implementing flexible benefits.¹
This is largely due to the fact that the cost of web based technology has reduced and its ability to mass produce benefit administration makes flex an affordable option even for small businesses.
So what are flexible benefits?
In a true flexible benefit (or cafeteria benefit) arrangement, employees are given a benefit allowance and select for themselves the selection and level of benefits appropriate to them as an individual.
In most cases, the employer selects certain benefits that the employee must buy a minimum level of, which are known as "core benefits". These are normally for the employees' protection or reflect those benefits which must be offered as a legal requirement. Further non-core benefits are then made available to the employee to purchase with their remaining benefit allowance.
¹ Employee Rewards Watch 2007. Click here to request a copy.
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