Flexible and Incentive Benefits: A Guide to Program Development: The Benefits Environment Determining Benefits Preferences The Results of the Study Other Benefits-Preference Research Research Conclusions Developing a Benefits Program Development Directions

Abstract

Support for benefits programs with choices and using benefits options as incentives dates from the mid-1930s. Until recently however, tax laws prohibited flexible, or cafeteria, benefits programs and, for all but top management, cash has traditionally been the primary incentive. But the easing of IRS constraints and continued success of compensating with benefits has brought increased interest in both. By 1984 more than 150 flexible benefits programs had been established--up from four in 1979--and incentive benefits are now used in some companies for sales and administrative compensation with good results.