Employers should undertake a feasibility study before implementing a flexible benefit scheme, advises an executive briefing by the leading people management experts Chartered Institute of Personnel and Development.
The CIPD launched its executive briefing on flexible benefits at its Annual Reward Conference on 10 February 2004, at the Millennium Centre in London. The guide urges employers to build a substantial business case for the introduction of the ’flex’ scheme, ensure that the culture of the organisation is ready for such a concept and determine how best to communicate the new scheme.
Employers need to consider the following when designing a flexible benefits scheme:
* Determining when the scheme will be introduced
* How it will be administered
* What benefits will be provided
* How will it be communicated
Charles Cotton, Adviser, Reward and Conditions of Employment, CIPD: Flexible benefits is a growing issue for our members and the industry, by allowing employees to flex their pay and benefits packages, organisations are able to enhance the perceived value of reward packages. However this is not a simple process, our new executive briefing is a practical guide to the implementation issues and an excellent way of understanding this topic in more depth.
The guide also outlines the potential benefits of ’flex’ schemes such as adapting to a changing labour market, better targeting of benefits and enhancing your employer brand. The latest CIPD reward survey shows that ’flexible’ benefits are becoming increasingly popular with employers in 2004, with 9% of them planning to introduce this type of scheme.
If employers are going to introduce flexible benefits, they need to make sure that they deliver the objectives that the company is looking for. They need to make sure that the culture of an organisation is ready and that IT systems are in place, commented Philip Hutchinson, author of the report.
CIPD launch employer guide on flexible benefits
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