Employers should proceed with caution when implementing increasingly popular flexible benefit schemes, according to the Chartered Institute of Personnel and Development (CIPD).
In a new guide on the issue, the CIPD said that companies should undertake a comprehensive feasibility study before introducing flexible benefits.
The employment association said that firms should carefully consider whether they are able to offer staff variable working hours and other perks without damaging productivity and profits.
As reported by Startups.co.uk, traditional benefit packages have undergone a transformation in the past year, with new flexible working laws obliging employers to offer irregular hours and homeworking to potential employees.
Businesses that are reluctant to offer cash benefits have also devised new types of perks, such as gym membership and private healthcare.
In its new guide, the CIPD advises firms to consider the following when designing a flexible benefits scheme.
- Determine when the scheme will be introduced
- How it will be administered
- What benefits will be provided
- How it will be communicated
Charles Cotton, of the CIPD, said that by allowing employees to flex their pay and benefits packages, organisations are able to enhance the perceived value of reward packages.
“If employers are going to introduce flexible benefits, they need to make sure that they deliver the objectives that the company is looking for.
“They need to make sure that the culture of an organisation is ready and that IT systems are in place,” he said.
To get a copy of the CIPD guide, click on www.cipd.co.uk
