Flexing it with Benefits
Flexible Benefits - An Evolving Journey in India
Being in its infancy in India, flexible benefits are offered by companies on a limited scale in terms of benefit options and employee audience. The plan design or the level of flexing as we may call it, is generally modular in nature like a combo meal plan with limited benefit options centered around insurance and wellness. With seamless integration of technology - driven communication and administration and ensuing program viability, the level of flexing can be enhanced to the next level (core benefits + higher flex allowance) and then to that of complete flex (absolute freedom to employees in deciding their rewards).
Implementing a Flexible Benefits Program
Redefining the Total Rewards Statement is the precursor to flex implementation, for which it is essential to assess the program feasibility taking into account factors namely employee aspirations, employer alignment and long-term cost & risk management encompassing the entire rewards spectrum. This would entail developing a hypothesis through in-depth analysis of benefits utilization and benchmarking studies and testing it by conducting stakeholder interviews, employee surveys and focused group discussions. Simultaneously, a comprehensive review of internal HR systems and its seamless integration with technology-driven administration and its related communication is vital to putting in motion a successful flex program. Though perceived as a useful mechanism for addressing issues of employee empowerment and enhancing the perceived
value of benefits, it is important that the stakeholders involved would also need to delve into critical aspects of long-term cost and risk management of the program. Flex being an evolving journey, it would be advisable for organizations planning to implement it as an alternate mode of benefit management, to initially roll it out to a limited audience, review utilization, fine tune and scale it up to a larger group by incorporating new elements.
Technology
For a flex program to be successful, it is imperative to have a robust technology platform integrating the core elements of benefits design, administration and communication. Online benefits platforms and mobile applications developed in-house by employers and the ones driven by technology companies, brokers and consultants have to be adept in harmonizing these core elements through constant innovation and enabling introduction of new benefit features.As technology is changing the way we communicate, employees have expectations that devices used in their work-life matches that of their social life viz. smartphones and tablets.
Moving Forward
Striking a balance between leadership challenges and employee aspirations would be key to devising a rewards program that enhances the Employee Value Proposition (EVP). As India aspires for a transformation from an emerging vibrant economy into a mature one and industrial development being given the much needed fillip, the key to sustaining the competitive edge is to constantly innovate and reinvent itself in the value chain. The most important challenge being people related, the success of global companies with diverse workforces is defined by its ability to create, harness and retain the right talent and flexible benefits as an effective alternate mode of benefit management can be a game changing employee engagement tool to achieve these goals
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