Flexible Benefit Models

Point systems and offer customization

Homogeneity in the delivery of benefits has become completely obsolete in the face of the undeniable demographic diversity of contemporary workforces.

Imposing the same standardized package on everyone in an organization represents a monumental financial waste and inexcusable managerial blindness.

To solve this problem, the innovative concept of a la carte compensation has emerged.

In this format, the company assigns each employee a virtual budget or points system, which can be freely exchanged for the services that best suit his or her life cycle.

For example, in an international public relations agency, a twenty-five-year-old single female executive will probably ignore childcare vouchers and use her credits to purchase extra vacation days and subscriptions to high-performance gyms.

In contrast, a forty-year-old manager with three children will allocate all his points to maximizing his family's health insurance coverage and obtaining school aid vouchers.

This freedom of choice maximizes the perceived value for every penny invested by the corporation.

Design steps: survey, market and allocation

Building a customizable scheme requires a flawless architectural methodology to avoid administrative chaos.

The inaugural step is to conduct an internal information survey through anonymous polls, asking staff directly which services they fervently desire and which they completely disdain.

Cross-referencing this data with industry benchmarking ensures that the resulting menu is spectacularly competitive.

If eighty percent of an architectural firm rejects vehicle insurance because they use bicycles, management should immediately reallocate those funds toward sports accident policies.

Subsequently, financial management, in collaboration with talent, determines the actual cost of each benefit and assigns a virtual point value.

Communication of this new paradigm must be pedagogical and crystal clear, often supported by interactive software platforms where the employee drags and drops the desired benefits until his or her annual balance is exhausted.

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