Sharing benefits


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Sharing benefits

  1. 1. “Flex can address needs of both employers and employees” By: Anupriya Verma 10 PG (J) 06
  2. 2. Introduced by MNCsOptions provided by companies around taxable allowances Menu of optional benefitsBest fits individual’s needsCustomize their benefit packagesPotential of cost saving to both employers and employeesCompliant with Section 125 of the Internal Revenue Code
  3. 3. OptionalBenefits Dental Insurance Disability Vision Care Insurance Group-term Child Care Life Insurance
  4. 4. Most popularflexible benefits Lifestyle Benefits: •Holidays •Mobile phones • Education • Child care • Transport reimbursement • Food vouchers Medical Benefits: •GP •Maternal •Dental •Optical Personal Insurance: •Health screening •Spa •Fitness
  5. 5. How Flex WorksDefined-contribution conceptFixed number of flex creditsBased on their salary, marital status, number of dependents,career level, performance and/or tenure Use these credits to “buy” their benefitsCore-plus plans: Medical insurance, legally-required benefits,long- term disability insurance, andretirement benefitsModular plans: Holidays, transport reimbursement, foodvouchersDual income families - duplicate medical benefitsEmployers control the allocations of the credits; also the pricetag on the benefitsProvides employers with the mechanism to shift some future
  6. 6. Flex as a talent retention strategyCost-effective ways to maximize the valueof benefits programs Valuable tool to satisfy employee needsand ultimately assist in retaining talentHelping the businesses to meet the needsof a diverse staffAttract and retain talent – driving force inimplementing Flex
  7. 7. Advantages of Flex Benefit SchemesEmployees choose benefits to meet their needs, so value these more highlyEmployers have a known fixed cost regardless of the benefits chosenEmployees appreciate the true value of their benefits and dont receiveunwanted benefitsEmployees have a sense of participation and controlDual career couples avoid duplication of benefitsEmployers are seen as responsive and caringThe benefits package aids recruitment and retentionEmployers are better placed to demand flexible working practices
  8. 8. Challenges inimplementing Flex
  9. 9. Main Reasons•Costs (80%) and administration (79%) - two main obstacles•Uncertainty over where to find a qualified vendor•Lack of market data (27%)• More complicated to administer•Record and maintain each employees benefitpackage•Must maintain adequate communication•Offer the opportunity to re-visit their benefit choices
  10. 10. Companies Providing FlexPhillipsABN AMRO BankIBMVarious law firms
  11. 11. ConclusionFlex is neither known or widely practised yetOnly 51 per cent of the respondents were aware of FlexHigh attrition rates at BPOs, the administrative complexities outweighadvantages of FlexEncashable monthly awards and vacation leaves treated as mannaForty-nine per cent of the respondents were willing to implement Flexwithin a yearCompanies can break-even in a year if Flex is deployed on a co-sharebasisIndian labour market has not yet matured enough, No one wants to befirst
  12. 12. Refere nces•Business World Issue Dated 10-16 March 2009••••