Over the course of 2005, there has been a trend amongst Hong Kong employers to begin offering more flexible benefits packages to their employees. About twenty-five percent of employers now offer flexible benefits packages, a sixty percent increase from 2002. Flexible benefits packages give employees the option to choose benefits that fit their needs. For example, a young employee in his twenties might opt for a health club membership, whereas a middle-aged mother might choose life insurance or child care.
Flexible benefits packages can give companies an edge over competitors in attracting and retaining talented staff. However, implementation of flexible benefits packages can lead to increased insurance and administrative costs as a result. Companies should weigh the costs and benefits of offering flexible benefits packages before implementing them.
