EMPLOYEE BENEFITS
Administrative problems proving less of a concern for flex users
Businesses with flexible benefit programmes plans are experiencing fewer administration problems as technological advances ease the day-to-day management of plans and their delivery to employees, says a new report from Hewitt Associates, the human resources and benefits consultants.
Renewed interest in flex plans
Yet despite heavy promotion by providers and consultants, flex remains far from universal. Indeed, Hewitt reckons that there are just 200 flex plans currently in operation in the UK. But there are some signs that the take-up of flex plans is about to accelerate: more than half of the 307 participants in the survey reported that they were considering flex, but still in early stages .
Why flex?
The need to help recruit and retain employees has become the prime reason for introducing a flex plan, mentioned by a third of respondents (33.9%).
Coping with administration less of a problem
The survey also found that some of the supposed problems with flex — in particular, coping with administration — may actually have been taxing employers less than has been the case, helped by improvements in technology and proven administration solutions .
While more than half of employers were fretting about administrative complexity in Hewitt's 1995 survey, just under a third believe that this is a major drawback now.
Key findings of Hewitt's flex survey
|
| Per cent of all respondents* |
| Most important advantages you perceive in operating a flex plan |
|
| Meeting the diverse need of employees | 26.9% |
| Helping retention | 18.9% |
| Increasing employee understanding of total compensation | 17.7% |
| Greatest drawbacks you perceive in operating a flex plan |
|
| Coping with the administration | 30.1% |
| Cost of implementation | 18.1% |
| Tax and national insurance issues | 10.6% |
|
| Per cent of flex users ** |
| Which groups participate currently/will participate in your plan? |
|
| All employees | 63.5% |
| Senior management only | 29.4% |
| Most effective communication initiatives at flex launch |
|
| Personalised statements/preference forms | 78.6% |
| Generic brochure describing the plan | 59.7% |
| Electronic preference modelling facility | 53.4% |
| How do you/will you administer your plan |
|
| In-house | 63% |
| Outsource | 37% |
* Sample size = 307.
** Sample size = 81 (companies that have implemented flex, are currently working on a plan or are interested in developing a plan and anticipate implementing within one year).
Want to know more?
Title: Survey findings: employer attitudes to flexible benefits 2000— 2001 , by Hewitt Associates.
Methodology: Questionnaire mailed to 1,790 organisations in the UK.
Sample size: A total of 307 organisations submitted replies, of which 49 operate flex schemes.
Business sectors: Participants represented a broad cross-section of companies and sectors, most notably financial services (17.3%), services (16.9%), industrial (15.3%) and hi-tech (13%). A third of organisations employed less than 1,000 employees. Just under a fifth employed more than 10,000 employees.
Availability: Contact Helenka Sosna-Rose at Hewitt Associates in the UK, tel: 01727 888208, or email: helenka.sosna-rose@hewitt.com
Take a look at Hewitt's web site . . . www.hewitt.com