There are many reasons why employers seek to introduce flexible benefits.  
  
1. It enables employees to choose the mixture and level of benefits that is most appropriate to their lifestyle, age and personal circumstances

For example, an employee who is nearing retirement is more likely to want increased contributions into their pension scheme, whereas as an employee aged 21 may prefer to take an increased holiday entitlement.  
     
2. Increased levels of employee motivation and employee retention/turnover 

As flexible benefits are typically valued more highly than standard benefits many employers find that empowering their employees to chose the mixture and level of their benefits has a motivational effect, and means that employees do not need to leave the organisation in order to find the benefits package they want. 
 
3. Valuable tool for employee recruitment which enhances the employer brand

As potential employees tend to value flexible benefits over standard benefits employers often find that they both receive more applications for vacancies and can reduce the length of their typical recruitment cycle. 
  
4. Improved cost control  

The flexible benefits process requires the total remuneration costs for each employee to be used as the basis for benefit calculation. This means that your business will have easy access to this key, employee specific data and feedback from our clients has shown that this new control is a significant help in the ongoing budgetary process that all businesses undertake. Some employers choose to use flex to protect themselves against rises in risk premiums. 
  
5. Demonstrates the value of benefits and total remuneration clearly to employees

With a traditional benefits package employees typically do not know how much it costs the Company to provide them with these benefits and consequently they do not appreciate the full value of their employer's spend. Many employees will also, for the first time, realise the full financial worth of their benefits package, a significant step to ensuring that your employees take ownership of their benefits. 
  
6. Reinforce Company culture/assist culture change

Many employers seek to implement flexible benefits to either reinforce the culture they hope to promote or to assist in changing the culture to one where self-service and flexibility are paramount. 
  
7. Enable the consolidation of different benefits packages following a merger / acquisition 

For employees who enter the organisation as a result of TUPE by introducing flexible benefits employers can aim to consolidate different benefit arrangements which can be under one framework.  
  
8. Encourages self-service 

Often flexible benefits are introduced as part of a wider HR strategy to shift all employee led transactions (for example the booking of absence) on to a self-service basis. 
  
9. Legislative pressure  

Both the introduction of the Flexible Working Regulations 2003 and the move to further strengthen Equal Opportunities legislation means that there is pressure from the government on employers to both introduce more flexibility into the workplace and to be more tolerant and observant of employees differing lifestyles.