November 2019th

People management
Individual assignment

Flexible benefits plan1

While I was listening to other students, presenting ideas about benefits they would love to have
at their future work places, I realized that almost all of the ideas are connected to “soft” HR
approach. Somehow I expected that as millennials and generation x is by nature flexible and
very “soft”.

I wrote down all the ideas I heard, both the ones that I liked and the rest. Sometimes, I
discussed with my colleagues about the presented ideas, just to hear their opinions and see the
people expectations from other point of view. Maybe the idea that doesn’t sound good for me
is perfect for someone else. And yes, that was exactly the answers I got. For the idea I thought
is useless and no one employee would like to have this benefit at work, a colleague comes and
tells me: “Ouuaaoo, have you heard? What a great idea!” At the end, we are all humans.

But then I asked myself, what would have happened if tomorrow, I start to work for a company
X, and it gives me just these benefits that I don’t like, or I don’t need at that moment of my life.
Well, honestly speaking, this situation is not a science fiction. Companies usually have a group
or a package of benefits which is offered to employees.

Some of benefits companies define alone, without asking employees what they want.
Occasionally, company can create its benefit package based on surveys what benefits
employees rank most. But even so, employees are not fixed resource, they are changing, some
leaving and others entering in a company. Changes are and supposed to be even more often,
especially today when environment and labor markets are unstable and technology
development is just an additional element which makes things even harder to predict. On the
other hand, not only employees change in the company but also their needs. For instance, the
benefit which satisfies employee today may not satisfy its requisite and expectations next year.

With all these thoughts, I found out what would I want to have in my future company as a
possibility. I would like to work in a company which can offer me Flexible benefits package, so I
can choose which benefits I want. This is completely opposite from a traditional “rigid” benefits
programs. So, instead of spending money on benefits that employees don’t use and don’t need
them, a company can:
- Define amounts for spending on benefits for each position,
- Create a comprehensive list of different possible benefits,
- Share the list with employee who will decide which benefit wants.
Following this model, companie can not only make employees happier but also reduce hidden
costs from traditional benefit programs. Advantages of this approach are not only about
retaining and making happier employees, but also about attracting personnel from “outside” as
this can improve company’s look and appearance on the market and put employer branding
activities on the higher level.

Offering employees a choice of different benefits from a “menu” so they can tailor benefits
package on their own, is not shortsighted. Imagine that the same day I start to work for a
company, a colleague who has a child also start to work for a company. I would definitely
choose to have a paid gym membership and will skip on benefits list the part designed for the
employees who have kids, like 24/7 private health insurance for children. It is very likely, that a
colleague with a child will choose health benefit for a child instead of paid gym for a whole
year. On the other hand, suppose that I get married and become a father six months after
hiring date. Flexible benefits plan will then give me a possibility to change my benefits, and
substitute gym membership for “extra” paternity days.

Finally, this work has just demonstrated the possible idea for company’s benefits management.
With the respect of modern agile environment and its everyday changes on one hand, and
human nature on the other, I tried to show how companies can change their views on creating
and implementing its benefits packages, with the goals of making current employees happier
and building attractive environment for future employees.

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