Flexible Benefits Programs: A Creative Way to Manage Rewards

In order to attract and retain top talent, organizations need to offer benefits programs that suit individual needs and life stages, as well as providing transparency and portability.

While employee awareness of benefits is lacking, compensation and benefits is one of the most important components of reaching business results In Turkey. Despite the high importance placed on comp and ben, organizations are still struggling to identify creative ways to attract and retain talent.

How adding flexibility helps companies stay cost-neutral

Due to political and economic concerns in Turkey over the past five years, companies have generally preferred to remain reactive in terms of benefits prevalence. They’re now looking for ways to promote diversity and provide options to employees while staying within allocated budgets. The prevalence level of flexible benefits rose from 11% in 2013 to 31% in 2015 in Turkey. [1] With these programs, leading companies are starting to provide new benefits to their employees and offer the opportunity to exchange benefits. Challenger companies are also considering flexible benefits programs as a way of competing with the pioneers. [2]

Moving to a flexible benefits program is not easy. It involves redesigning the benefits package, complete with professional employee communications. To justify such a large-scale HR project, the program must deliver on containing costs and increasing employee satisfaction.

Let’s look at an example of a company that provided more choice while staying cost-neutral. The figures are in Turkish lira and our employee is married. The value of the benefits package is 11,417 lira, with a gross cost to the company of 12,204 lira (after the national social security premium the employer must pay). By using a flexible structure, the employer stays cost-neutral while the employee can personalize or even increase his level of benefits.

Flexible Benefits: The Key to Total Rewards that Attract Talent?

By using a flexible structure, the employer stays cost-neutral while the employee can personalize or even increase his level of  benefits.

Organizations must look for effective ways to manage rewards while meeting the diverse needs of employees. The six ways of offering flexible benefits outlined in this article is a good place to start when trying to determine creative strategies to attract and retain talent.

[1] Ibid.
[2] Mercer introduced flexible benefits to the Turkish market in 2007 and today offers services to more than 40,000 people at more than 55 companies with the proprietary SaaS platform reFlex.

Can Suntay
by Can Suntay

Health & Benefits Consulting Leader Can leads Mercer’s Health & Benefits consulting business in Turkey. He helps clients across industries design and implement total rewards management solutions.

Health & Benefits Consulting Leader Turkey

Read the full article
Fill out your details below and receive the report in your inbox. If you do not have your pop-up blocker enabled, you will be prompted by your browser to download the article or to view it in a new window.
*Required Fields