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what is a response to the following A flexible benefits plan is one that gives employees a choice between benefits. A core set of benefits
what is a response to the following A flexible benefits plan is one that gives employees a choice between benefits. A core set of benefits might be required, but then employees can allocate other promised benefit dollars to other types of benefits offered. These are also known as cafeteria or IRS 125 plans (Department of Health and Human Services, n.d.). There are many pros and cons to this approach. Pros include autonomy. The employee has more control and can choose which benefits his needs at his current stage of life. The employee can design a plan to meet his preferences and budget. This allows greater financial flexibility and freedom than a one-size-fits-most plan. Flexible time off allows the employe to manage familial obligations and childcare. Pros to the employee include reduced payroll taxes. With choices, it also allows the employer to offer better personalized benefits packages which can reduce turnover and attract talent (Darr, 2024). Other advantages are that employees are now invested in their benefit choices and have a better understanding of them. Cons of flexible benefit plans are administration. Because there is a plethora of combinations, management can be difficult. It is also difficult to
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