Flexible benefits allow employees to choose the benefits they value most, which is great for employee recruitment and retention. The disadvantages of offering a flex benefits package pertain to time, resources, communication and cost.21 May 2020
What is flexible benefit pay in salary?
In India, Flexible Benefits Plan (FBP) in salary structure is a facility for employees in which they can modify components of CTC (Cost to Company) such as medical expenses and conveyance. CTC contains all the elements of salary; HRA (House Rent Allowance), Medical Expenses, Basic Salary, DA (Dearness Allowance), etc.
What is a flexible benefit allowance?
A state paid statutory benefit for covering the cost of health insurance over a twelve (12) month period. If not taking health insurance but qualify, may take the “In Lieu of FBA” benefit as taxable compensation.20 Aug 2021
What are the advantages of flexible benefits?
A flexible benefits platform helps provide a benefits package that is much less likely to be matched anywhere else, while also improving the relationship between the employee and the company.
What are the disadvantages of having a flexible plan?
- Flexible working often means working from home.
- Blurring the home / work balance.
- Procrastination.
- Communication difficulties.
- Flexible working requests can cause employee isolation.
- Reduced benefits.
- Possible lack of career progression.
- Being sidelined.
Which of the following is a disadvantage of providing flexible benefit plans?
The major disadvantages of a flexible benefits package are: • Employees make bad choices and find themselves not covered for predictable emergencies. Administrative burdens and expenses increase. Adverse selection: Employees pick only benefits they will use; the subsequent high benefit utilization increases its cost.