Flexible employee benefits, along with voluntary ones, have only just begun to appear within the domain of employment and work in the last 30 years. It has been introduced partly to making an individual become more responsible for his workload, and to reward workers with tailor-made benefits – rather than a one all-rounded bonus for everyone.
Employers have to let its workforce know why individual schemes are good for them and the company. If an employee can excel in the workplace, a flexible benefit that has been tailored to that person will be a great addition to a resume or LinkedIn skill set.
Let us take annual leave as one example: if an employee wishes to buy more days off, it can be done by first reducing the business salary bill and benefit the employee by saving them the national insurance contributions that might be payable when on holiday. Adversely, an employee can sell annual leave if the full entitlement is not needed, allowing for more money to be earned in place of time off.
There are many benefits to offering employees flexible benefits. Some businesses offer employees a cycle to work scheme. This helps reduce the company’s carbon footprint, makes its workforce healthier and more productive, and can actually save a business on its national insurance contributions.
Offering flexible employee benefits like childcare vouchers or adding to pension contributions will always have a two-way effect. Applying childcare vouchers through a small sacrifice to the salary will enable parents to work, save tax and benefit from reduced national insurance payments. Childcare costs are huge and any effort by the employer to make this scheme beneficial will be seized upon by employees.
Flexible Employee Benefits Cover Health and Fitness Too
Private medical insurance has always been a popular perk, given to management and senior managers as standard. But now this insurance is available to all, even if it is only sold as a single cover for the employee only.
Life Assurance and health screening programs are another couple of examples of how flexible benefits can serve both the business and its employees.
Gym membership can also be hugely popular among staff. Employers have a distinct advantage where they can obtain staff discounts for membership, providing they can sell or secure a certain amount of contracts.
It is another win-win situation all round for employers and employees when administering flexible benefits to its workforce.