Why are flexible reward systems becoming an increasingly popular form of compensation systems?

Employees value flexible reward systems and may develop strong loyalty and attachment to an employer who provides them.

The flexible reward system allows the organization to trade off salary increases for benefit increases as ways of rewarding the

employee.

Flexible reward systems allow the organization to standardize the benefits package for all employees.

Organizations get fewer benefits for their dollar than with standard approaches, but their employees are more

satisfied.

Flexible systems require less administrative time to develop and maintain than conventional approaches.