Flexible Benefits Programs
Flexible Benefits Programs
Flexible benefits programs are very important in an organization as they offer an opportunity for tax savings. Flexible benefits programs enable the organization to pay eligible expenses which may arise using tax-free dollars. Flexible benefit program has got three components which include automatic before consisting of accident insurance contributions and health care tax, flexible spending account which is an independent care and lastly flexible spending account for health care. Offering the employees these relocating benefits builds popularity in an organization. The employees are able to select the kind of benefit they want from flexible benefit alternatives offered. Flexible benefits allow the employees taxable income to be lowered because they deposit funds through payrolls.This paper discusses how hi-tech Company which has gained popularity due to use of flexible benefits programs (Scandura,&Lankau, 2007).
Hi-tech company has used different flexible benefits to attract and maintain high experienced personnel. Hi-tech is one of the developing companies which have multinational firms which have the greatest number of workers offering various flexible benefits. Hi-tech has retained its largest workforce through the benefits offered to the employees. In order for the hi-tech to attract the most talented workforce and be able to retain them, it has used the flex approach. This flex has been introduced in recent times which have captured attention of many organizations which include the insurance of the employees with inclusive of their families, pension and savings, travel benefits and also other spending accounts for the employees. Due to the competition of the available talents in the market, the hi-tech company has used the flex as a solution to maintain its employees whereby there is high increment of the pay in developing companies. The competition arising from different companies has led to many organizations to use flex in order to compete with the rivals (Lawler, 2012).
Hi-tech is one of the companies meeting its employee’s satisfaction maintaining the competitiveness in the market. Flexible benefit programs have also enhanced the management and control of short-term and long –term costs. Hi-tech company has enabled the employees to select the kind of benefit they need through the use of flex. Through the use of flex by hi-tech, the management has been able to communicate effective so as to understand their interests therefore meeting diverse needs for every workers. This approach has improved the company’s effectiveness significantly through its operation and provision of different flexible benefits. Traditional benefit programs are declining due to high competition in the market and also from the talented personnel. Flex is the new renovation that the employees are interested in because of provision of various alternatives. The organizational brand is also expanded through attaining the competitive advantage and remuneration advantage whereby the implementation of this approach has impacted positively to both the internal and external target market where there is high competition of talents (Scandura,&Lankau, 2007).
The image of the company has been established by the flexible benefits of the hi-tech whereby the workers retained have got high experience and skills which lead to success of the organization. The flex approach has attracted many workers from different diversity from the message send globally from the organization. This has enabled all the talented people to join the organization and be retained in hi-tech company. Another way the company has used flexible benefits programs is through raising the cost of the flexible benefits. The companies using the traditional benefit programs may suffer a risk of cutting down the benefit cost which may impact negatively to its employees. The employee’s satisfaction is put under risk because there are no other alternatives as seen in the flex benefits. With the use of flex, the company does not only concentrate on the target market but also strategic human resources and cost budget to enable its effectiveness. In addition, the hi-tech treats the employees according to their workplace diversities and age whereby if the aged group need pension benefits, the organization puts it into consideration and welcome all their choices (Barber, Dunham,& Formisano, 2010).
In conclusion, flexible benefits programs are very important and effective in an organization as it sells out organization’s popularity and image. The employee’s satisfaction and interests are met through the flexible benefit programs which offer various choices to the employees. The hi-tech have also considered excellent service delivery through the use of flex whereby the functioning of this program has been very infective in the organization. it has ensured that maximum support has been provided to the employees during their choice selection of benefits and also on the management of their benefits. Good and open communication between the management and the employees has also enabled the organization to understand how effective the flex program is to the organization (Lawler, 2012).
Barber, A. E., Dunham, R. B., & Formisano, R. A. (2010). The impact of flexible benefits on employee satisfaction: A field study. Personnel Psychology, 45(1), 55-74.
Lawler, E. E. (2012). Pay and organization development (Vol. 3990). Prentice Hall.
Scandura, T. A., &Lankau, M. J. (2007). Relationships of gender, family responsibility and flexible work hours to organizational commitment and job satisfaction. Journal of organizational Behavior, 377-391.