The Impact of A Flexible Benefits System on Employee Engagement

A couple of years back, I had written about “the market for employee benefits”. I was fully convinced that it will help foster a better understanding of the employee benefits plan and drive better satisfaction as a result of the ability to customize the plan to suit individual needs and lifestyles.

I was at a conference last week, where I was a part of a panel discussion. One of the questions posed to me was “How does having a flexible benefits system affect the engagement levels of employees?”

Typically, research shows that pay / benefits do not feature as a top driver of engagement – they affect engagement, but other factors assume higher priority when it comes to engagement. However, pay / benefits are critical drivers of talent attraction and retention. But, I do feel that a flexible benefits system, as opposed to a traditional benefits plan, would also affect engagement.

In a flexi-benefits programs, the role of employees evolves. From being passive recipients of a standardized, mundane plan, employees become active decision-makers in a flexi-benefits system. It helps to build that sense of autonomy, of empowerment, of ownership. And that does have a positive rub-off effect on engagement, attraction and retention. Overall, I feel that a flexi-benefits system is a great way to differentiate your employee value proposition and compete better in the marketplace for talent.

Have you implemented a flexi-benefits system? What has been your experience?

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4 thoughts on “The Impact of A Flexible Benefits System on Employee Engagement

  1. Pingback: Tweets that mention The Impact of A Flexible Benefits System on Employee Engagement « Mumblr -- Topsy.com

  2. Companies should hire professional lifestyle management companies to help their employees with things like employee benefits and employee discounts. this will help in making sure that employees do not worry about out of office tasks like dining and shopping as they will be attended to by the respective companies.In turn this will help in making employees to be more productive.

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  3. Employees bring attitudes and emotions with them every day to work. They will invest energy into the positive or negative. Everyone knows how the negative energy is spent—complaining, clock-watching and so on. Recognition is not magic, but it definitely affects the probability of positive thinking and thereby positive results.

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  4. It’s basic human nature to gravitate to an atmosphere of acceptance and encouragement. When employees know they matter—and their work matters, they become emotionally invested in a positive way. Employees bring attitudes and emotions with them every day to work. They will invest energy into the positive or negative. Everyone knows how the negative energy is spent—complaining, clock-watching and so on. Recognition is not magic, but it definitely affects the probability of positive thinking and thereby positive results.

    Like

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