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Flexible benefits, or "flex," is a strategic human resources solution that can give companies a truly competitive edge in winning the global war for talent and containing costs. Several companies in Asia plan to implement flex in the next few years, and a number of emerging best practices in flexible benefits design are being developed. This article discusses the many advantages of flex, flex best practices emerging across Asia, and important considerations for employers when designing flexible benefits. Finally, the author shows how one global company in Singapore found flex to be an effective differentiator for attracting and retaining talent as well as helping manage employee health care costs.
In today's world of multinational organizations, the recent economic crisis has had a varying impact, with the mature economies of the West hit hardest, while the emerging economies of the East - China, India and beyond - continue to experience solid growth. But amidst a fierce global war for talent and the prospect of a postrecession economic boom, today's multinationals have in common the challenge of attracting and retaining the talent they need for their competitive futures.
Where, then, can organizations add value to their value propositions? Often it conies down to employee benefits, and in the emerging business landscape, flexible benefits have a distinct advantage for organizations that are determined to attract the generation of workers who value greater choice in all aspects of their lives. Indeed, according to the Mercer 2010 Talent Retention Survey, implementing a flexible benefit plan that allows more employee choice was seen as the top benefit strategy for employee retention and satisfaction.
There's no question that flexible benefits, or flex, have been a strategic win for many global employers. Across Asia, however, according to the results of the Mercer 2009 Survey on Employee Choice in Benefits, on average less than 20% of companies offer any choice, with fewer still offering a fully flexible benefit plan to their employees. Offering one benefit plan for staff and a separate plan for executives may seem like a reasonable approach, but as talent becomes a key focus, this approach may not work.
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