Understanding the value of flexible benefits
The workforce has changed dramatically due to today’s macro economy - leaving employers in the unique position of having to support individual employee needs across a spectrum of variables, from lifestyle preferences to geographical location and everything in between. Due to this need, providing flexible benefits that are valuable on an individual basis has become imperative.
However, until recently, many companies have turned to point solutions in an attempt to meet individual employee needs. While point solutions offer some results, implementing, launching, and managing multiple options to try to meet individual workforce needs presents a multitude of interconnected issues from administrative burdens to usage barriers, substantial cost, and difficulty scaling. Faced with these challenges, innovative companies are seeking innovative approaches. Enter flexible benefits.
A flexible benefits program offers employees a variety of choices. The construct is flexible and adaptable in nature, giving employees the freedom to choose benefits that are meaningful to them and support moments that matter.
Quantify the value of flexible benefits programs
Many employers understand the value that the advancement a modern flexible benefits programs provides, yet struggle to quantify the return on investment for benefits that are adaptable. To help connect the dots, Forma partnered with a third-party administrator to facilitate a conjoint analysis that quantifies how employees value benefits with flexibility and choice. Conjoint analysis has been used for decades to identify the customer value of product features and the employee value of reward elements.
This white paper is the result of the analysis, which demonstrates that flexibility in benefits design positively impacts perceived value. It specifically demonstrates how much employees appreciate the concept of flexibility and choice when it comes to their benefits and shows the dollar value that employees place on being able to choose benefits that matter to them. This is a direct way to show ROI for the funds companies invest in benefits spending accounts and can help HR leaders build a business case for the additive value of these programs to their finance teams.
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