Numbers with flex modest but rising

Approach to benefits provision

What the research found

Standard benefits programme

A traditional benefits package offering no choice in the levels of benefit and no options to obtain additional benefits.

• Still the most prevalent approach to managing benefits in the UK, used by 58% of survey respondents.
• Concerns that it is not sufficiently valued by employees (28% of respondents) and is difficult to communicate (21%)
• But companies are now seeking to widen the choice of benefits provision -- 28% of employers have considered implementing flexible benefits.

Voluntary benefits

In addition to the basic package, employees can purchase benefits directly from suppliers at preferential rates negotiated by the employer. These new benefits include dental insurance, critical illness insurance, disability insurance, and financial advice.

• This approach is becomingly increasingly important: 19% of survey organisations offer benefits on a voluntary basis and 61% said they would consider this in the future.

Flex

Under a formal flex scheme employees can opt to trade benefits for cash or to purchase other benefits.

• After all the hype, there is some evidence that the long-predicted pick-up in the use of flex has finally arrived.
• Although only one in 20 surveyed organisations currently have a flexible benefits plan in place, 3% are in the process of implementing a scheme and 10% are considering implementing flex.
• Among those organisations with existing flex schemes, communicating effectively was the most challenging part of the implementation programme.
• Private healthcare was the most popular benefit identified by employees.