The talent landscape is becoming more and more employee-centric with businesses needing help to retain and recruit talent. It has become so essential that employers are aggressively seeking innovative ways to make their offerings attractive. In addition to competitive compensation, they are turning to flexible benefits plans in salary to improve employee morale. This flexi benefits plan is a creative method of empowering employees to design their compensation structure.
But how exactly do you structure a flexible benefit plan in salary and what is its significance in creating a positive work culture? Let’s understand.
Using a Flexible Benefit Plan in Salary
Generally known as a flexi benefit plan, it is a benefits program that involves employees selecting the benefits they want to include in their compensation structure. It is essentially a package of allowances and reimbursements that employees can choose from to have a comprehensive flexible benefits plan in salary. These benefits could range from meal allowance to travel vouchers and other tax-free schemes.
Flexible benefit plans in salary can make just the difference in improving employee motivation, and productivity by extension. However, you must be mindful of how you leverage the benefits plan to maximize its benefits. Below we discussed some of the proven and innovative ways to implement flexible benefits programs.
Empower your employees through flexibility
Flexible benefit plans enable individuals to control how they spend their money and on what. By allowing employees to select the flexible benefit plan in salary, you give them the freedom to express their individuality and focus on well-being. It means, employees will be free to prioritize their needs, which could range from gym membership, professional development, or work-life balance.
Offer financial wellness to employees
Many employees struggle with financial management as they look for ways to save. Flexible benefits plan is a great tool to plan their finances better and avoid going overboard with their expenses. By including flexible benefit plans in salary through health insurance, meal allowance, etc., employees can save more money with necessities being taken care of. It also inculcates financial discipline in them while improving overall morale.
Accommodate diverse needs for personalization
Most companies make the mistake of going with a one-size-fits-all approach when offering flexible benefit plan in salary. Flexi benefits scheme, however, changes that by mandating companies to offer a diverse range of benefit options for employees. It demonstrates that companies value the diversity of their workplace and allow for an inclusive workplace culture.
Better work-life balance for high morale
Flexible benefits plan in salary includes things like health insurance and leave travel allowance. These are aimed at taking care of basic health and wellness aspects of employees, which frees them from worrying about personal needs. It means that they can focus better at work and improve productivity along with efficiency on the job.
Leverage tax breaks for better savings
By including flexible benefit plans in salary, employees can significantly reduce their taxable income. It means although their take-home salary may seem reduced, overall access to funds is greater than before the flexi benefits program. Additionally, employees get tax-free money to handle a range of things like meals, fuel, broadband, and education.
Better financial discipline and accountability
Once the flexi benefits plan is implemented, employees get budgeted funds for all the categories they select and will now be mandated to limit their expenses within the capped amount. By being forced to remain compliant and avoid budget overruns, employees cultivate a habit of picking cost-effective alternatives when possible.
Maximize benefits of flexi benefits plan with Zaggle SAVE
Flexible benefits plan in salary allow businesses to improve employee experience by giving employees complete freedom over their salary. For employees, it presents an innovative way to reduce their tax liabilities, while increasing their consolidated take-home salary. However, managing and implementing unique requirements for flexible benefit plans in salary requires an intuitive platform like Zaggle SAVE.
SAVE is a powerful tool that allows the admin to seamlessly add, remove, customize, and manage flexi benefits plans as per requirement. The solution comes with an integrated card that allows employees to use the tax-free funds for their respective purposes. The single card enables them to take care of all the allowances with a multi-wallet option. Zaggle SAVE is a complete solution for efficient benefits management. Learn about it in detail here.
