THE IMPACT OF FLEXIBLE BENEFITS ON EMPLOYEE SATISFACTION: A FIELD STUDY

TLDR

Potential confounds arising from the complexity of the flexible benefit intervention are discussed. The study seeks to evaluate employees' attitudes toward a new flexible benefit plan and to outline future research on its effects on worker reactions and behavioral outcomes. The authors surveyed 110 employees before and after implementing the flexible benefit plan to gauge attitudes. Implementation of the flexible benefit plan led to a large, statistically significant increase in benefit satisfaction and a smaller significant increase in overall satisfaction, while also improving employees' understanding of the package; no demographic differences were observed.

Abstract

This study examines the attitudes of 110 employees of a financial service organization before and after the introduction of a flexible benefit plan. A large, statistically significant increase in benefit satisfaction was observed following implementation, as was a smaller significant increase in overall satisfaction. Employee understanding of the benefit package also increased significantly. No significant relationships were found between demographic characteristics and responses to the flexible plan. Potential confounds due to the complexity of the intervention are discussed. Future research is called for to examine the processes through which flexible benefits impact worker reactions and to examine the impact of flexible benefits on behavioral responses such as attraction and retention.