Advantages of a flexible benefits platform
See the power of a flexible benefits platform for your organization. Save time and money with streamlined HR processes, and empower your employees with personalized benefits options.
Discover the advantages of a flexible benefits platform
Flexibility is key for employers looking to attract and retain talent in today’s changing labor market. Because the workforce is so diverse, flexibility benefits are a critical component of a benefits package. Gone are the days when it was enough limited choices that only work for some. Flexible benefits programs provide flexibility for employees to choose what’s most meaningful to them and support their needs.
Employees expect more than a traditional employee benefits package. Employees have come to expect health insurance, 401(k)’s, dental and other retirement offerings. Offering an attractive flexible benefits program can be a key factor in recruiting and retaining top talent. A flexible benefits platform, like Forma, can be tailored to meet the unique needs of your employees.
What are flexible benefits?
Flexible benefits are a type of benefits plan that allows employees to customize their benefits package. Employees get to choose from a variety of options. Flexible benefits have changed over the years, and the offerings continue to evolve.
“Cafeteria plans” in the U.S. allow employees to build their own pretax benefits bundle as it complies with Section 125 of the IRS code. The past few years have seen a rise in Lifestyle Spending Accounts, which are accounts that are funded by the employer. Employees can use employer-funded accounts to pay for expenses as outlined in the design plan. This flexibility allows employers and employees to fund many programs.
Forma's Lifestyle Spending Accounts benchmark report goes into great detail about what it takes to build a successful flexible benefits program.
What is a flexible benefits platform?
A flexible benefits platform, like Forma, is a platform that administers these flexible benefits. Many times, HR administrators find administrating point solutions daunting and overwhelming. This is where flexible benefits platform administrators come in helpful. They can take the workload and administrative pressure off HR leaders.
HR admins meet with the platform administrators to understand the landscape and goals of the company. From there, flexible platform administrators can help design a plan to help potentially save costs and meet the demands of all employees, globally.
Read how Zoom transformed its employee wellness benefits program into a top-ranked Lifestyle Spending Account global solution.
Advantages of a flexible benefits platform
Increased employee satisfaction
When employees can choose the benefits that are most important to them, they are more likely to be satisfied with their benefits package. This can lead to increased employee loyalty and decreased turnover rates.
In this recent conjoint analysis, Forma partnered with a third-party administrator to measure the value of flexible benefits. The ROI of flexible benefits white paper shows an in-depth analysis of how employees are valuing flexible benefits.
Respondents were asked to rate the value of their current benefits package on a scale of 0 to 100, with 0 not being valuable at all and 100 being extremely valuable. The score averaged 70. When Lifestyle Spending Accounts were added to the benefits package, the average increased by 5 points, just behind a 401(k) offering.
A flexible benefits platform can provide employers with a range of cost-control options. Not only can employers offer employees flexible, tailored packages appropriate to their circumstances and preferences, but they can also manage the costs associated with all those packages through a single administrative system. This means that employers can keep track of their spending on an ongoing basis, while still providing a competitive employee benefits package.
The flexible nature of this type of platform also allows employers to customize how much they contribute towards each benefit, allowing them to adjust their spending as needed. Employers may choose to allocate more money to some benefits than others to better meet employee needs and provide attractive perks. This gives them greater control over their budgeting decisions and helps ensure that they keep in line with budgets each year.
A flexible benefits platform allows employees to choose from a variety of benefits, including healthcare, dental, vision, life insurance, disability insurance, wellness, commuter, and more. Employees can also choose the level of coverage that best meets their needs, such as high or low deductibles.
As the workforce becomes more and more diverse, it’s important to allow employees to decide on what they want based on their unique set of circumstances. For example, if an employee's spouse has access to better health coverage through their job or if they have young children attending daycare regularly, then those factors should be taken into consideration when building out the package of flexible benefits offered by the employer. This customization ensures that all employees have access to the most appropriate and beneficial plan for them personally.
Lifestyle Spending Accounts fit in well here because the flexibility here is truly limitless. The program design is up to the creativity and design of the HR admins and the flexible platform administrator. Forma has set up thousands of these accounts and is happy to partner with your company to set up this flexible benefits program.
When employees can choose their benefits, they are more engaged in the process and are more likely to understand and appreciate the value of their benefits package. This can lead to increased job satisfaction and productivity.
Employees are often more likely to participate in flexible benefits programs which can lead to increased engagement. A recent survey by Forma Research showed that flexible benefits ranked second in a list of 17 offered benefits.
Flexible benefits platforms offer employers a powerful tool for increasing employee engagement and satisfaction. By offering customizable packages tailored to individual needs and preferences, flexible benefit plans give employees the power to choose the best options for them while employers have greater control over cost management and budgeting decisions. When paired with overall improved employee engagement, flexible benefits programs create an enviable workplace culture that attracts top talent and drives organizational success.
Offering a flexible benefits platform can be a key factor in attracting and retaining top talent. In a competitive job market, an attractive benefits package can be the difference between a candidate accepting or declining a job offer. When employers can offer flexible benefits packages that meet the needs of their employees, it can be a major competitive advantage.
As organizations continue to focus on recruiting and retaining top talent, flexible benefit plans will become increasingly important in setting companies apart from their competitors. By offering attractive flexible benefits packages, companies can create an enviable workplace culture and develop the strong employee relationships needed for long-term success. In the end, flexible benefit plans give employers an edge in the highly competitive market of today.
How to choose a flexible benefits platform
When selecting a flexible benefits platform, employers should consider the following factors: cost, support, and user satisfaction.
Cost: It is important to find a flexible benefits platform that fits within your budget. Make sure to compare different platforms on price, as well as the features they offer. You may also want to evaluate whether a platform offers discounts or other incentives for larger groups or longer contracts.
Support: The flexible benefits platform should provide customer service and technical support throughout the implementation of the system and beyond. This includes providing answers to questions about how to use and manage the system, as well as prompt resolution when issues arise.
User satisfaction: Look for flexible benefits platforms with high ratings from current users, including those who have implemented the system and those who have used it for employee benefits administration. Additionally, evaluate customer reviews to gain insight into a flexible benefits platform's functionality and usability.
By taking cost, support, and user satisfaction into consideration when selecting a flexible benefits platform, employers can find the right solution for their needs. With a flexible benefits program in place, organizations can offer customizable packages that meet their employees’ individual needs and preferences while maintaining effective budget control and driving organizational success.
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