Companies are struggling to adapt to the changing employment landscape as an increasing number of employees are seeking better workplace experience. A competitive salary is no longer an attractive value proposition for a new-age workforce. They understand that their tax liabilities are directly proportional to their package. To address this concern, companies are offering flexi benefit program benefits.
What is a flexi benefit program?
Flexi benefit program is a plan to restructure employee salary by adding components like food coupons, travel allowance, fuel allowance, and so on. It is an employee-centric approach to designing salary structure giving control to employees on how their compensation must be distributed to reduce their tax liability. With companies looking for new and innovative methods to enhance employee experience, flexi benefit plans have emerged as a potential strategy. Some of the flexi benefit program benefits are listed below:
- Enhanced employee experience: Giving employees the freedom of customizing their salary components adds to the overall employee experience.
- Reduced tax liability: Employees can avail of tax benefits by including components like food coupons, education allowance, and fuel allowance in their paychecks.
- Simplified money management: Under the Flexi-benefit program, you cap allowance amount that ensures that individuals don’t overspend on one thing.
- Increased transparency in salary: Employees get complete visibility into their salary structure, incentives, and perks, which will help in improving employee satisfaction.
- Improved productivity: Employees who are engaged at the workplace produce a better quality of work, which will help organizations achieve their business goals.
- Better recruitment rate: Flexi-benefit plan can be a great talent puller as it exhibits your care for employees’ financial well-being.
The need for flexi benefit program benefits has stemmed from the diverging motivations of the new-age workforce from the traditional ones. Employers must look beyond competitive salaries as a tactic to attract and retain top talent. Flexi benefit programs benefit both companies and employees. Employers, however, need to be careful when designing the program. Any error, confusion, or misconceptions could create a negative effect on employees. Companies might feel the implementation process has an operational overhead. However, they can utilize an automated solution like Zaggle SAVE to provide flexi benefit program benefits to its employees.
Let’s discuss the top considerations you must make when designing a flexi benefit program.
Tip 1: Understand the needs of your employees
The flexi benefit program benefits employees by allowing them to pick and choose their salary components. However, each employee will have diverse needs and preferences. You must take that into account to ensure the successful adoption of the program. Utilizing polls and surveys to gather the necessary information will empower you in customizing your flexi benefit program benefits.
Aligning your program with the diverse needs of your employees will ensure the success of your program driving high employee satisfaction, better productivity, and increased loyalty.
Tip 2: Offer a variety of benefits
The flexi benefit program is all about extending flexibility in choosing the components your employees want. Limiting the tax-saving options to a few benefits will add to the frustration of the employees. The more options you have to offer, the better will be the reception of flexi benefit program benefits.
Using a solution like Zaggle SAVE enables you to expand your benefits portfolio. SAVE is a one-stop benefits platform that covers a variety of benefits like meals, fuel, leave travel allowance, telecom, gift, transport, and education to name a few.
Tip 3: Make it easy to enroll and manage benefits
As an organization, it is important to offer an attractive package of benefits for your employees. However, once you do that the real challenge lies in ensuring a user-friendly process for them to utilize flexi benefit program benefits. To streamline this, Zaggle SAVE offers a single card to help employees manage multiple benefits.
Traditionally, employees will have to manage food coupons, travel vouchers, and gift cards separately. It will add to the hassle of managing the benefits. With SAVE, you can replace all of this with one card that can be used across channels and vendors.
Tip 4: Communicate regularly with employees
Effective communication is critical to ensure that employees clearly understand the guidelines, and terms of utilizing the flexi benefit program benefits. Organizations must create awareness among the team on the intricacies of flexi benefit programs. Employees will need your guidance in understanding the tax benefits of each component and how best to leverage flex-benefit program benefits.
Tip 5: Get feedback from employees
To use flexi benefit programs as a potent employee engagement strategy you must understand how employees are benefiting from the plan. Conducting surveys, and one-on-ones with HRs will give you a fair idea of how well are you extending flexi benefit program benefits. Most organizations implement the program but fail to assess the challenges that employees might be facing in exploring the benefits plan. It will prove to be a redundant tactic if you do not measure the effectiveness of the flexi benefits program.
Conclusion
Companies can utilize flex-benefit programs to both pull talent and retain them effectively. However, it will add to the administration overhead if you choose to do it by traditional processes of coupons and benefit-specific cards. Historically, the hassle of managing flexi benefits saw just a few takers for the program. This is why Zaggle built SAVE, a digital solution to aid companies in streamlining the end-to-end journey of flexi benefit program benefits. Some of its core capabilities are:
- Corporate dashboard to seamlessly grant benefits
- A one-stop prepaid card to offer all benefits
- A dedicated mobile app to manage benefits anywhere, anytime
- Benefits that are compliant with necessary regulations
You can experience its benefits through a personalized demo.
