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    6 Strategies For Offering Flexibility In Employee Benefits For 2025

    Driving employee engagement and satisfaction

    Posted on 01-27-2025,   Read Time: 7 Min
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    Highlights:

    • Flexible benefits like monthly flex funds and wellness sabbaticals enhance employee satisfaction and retention.
    • Switching carriers for health plans can help maintain robust benefits without compromising financial health.
    • Customizing maternity leave and life insurance options meets the evolving needs of a diverse workforce.
    Three people are seen, with one holding a bulb-shaped 'Idea' sign, while two others sit behind and engage in conversation.
     
    Navigating the evolving landscape of employee benefits requires innovation and adaptability. This article delves into actionable strategies for enhancing flexibility in benefits, bolstered by insights from leading industry experts. Discover the expert-backed approaches to transforming your benefits offerings for a future-ready workforce.
     

     
    • Adopt Flexi-Time Off for Balance
    • Introduce a Monthly Flex Fund
    • Implement Flex Benefits Credits
    • Switch Carriers for Better Options
    • Review Maternity and Parental Leave
    • Offer Wellness Sabbaticals for Growth

    Adopt Flexi-Time Off for Balance

    Recognizing that the nature of work and employee needs have vastly changed, in 2025, we adopted a more flexible approach to our benefits package. Our most well-received initiative was the introduction of “Flexi-Time Off.” This unique perk allowed our employees to take time off as needed, based on a bank of hours they accumulated rather than a predefined number of leave days. 

    This measure not only enhanced work-life balance but also reduced burnout, leading to increased productivity. While introducing this, we learned that clear communication about how the system would work and its potential benefits was key to its success. Any company looking to adopt similar measures should invest in comprehensive employee education to ensure understanding and maximize utilization.
     
    Linda Moore, Head of HR, Slipintosoft seen with a cute smile on her face Linda Moore, Head of HR, Slipintosoft

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    Introduce a Monthly Flex Fund

    In 2025, we revamped our employee benefits to prioritize flexibility, recognizing that "one-size-fits-all" no longer worked. One change that stood out was introducing a "Flex Fund." This was a monthly allowance employees could use however they wanted: childcare, home office upgrades, gym memberships, or personal development courses.

    Here's how we approached it: instead of offering a rigid set of perks, we allocated a specific budget per employee and let them decide what mattered most. To simplify the process, we partnered with a benefits platform for seamless reimbursements, reducing admin overhead for both human resources (HR) and employees.

    The response was overwhelmingly positive. Employees appreciated the freedom to tailor benefits to their needs. One key takeaway we'd share? Listen to your team before rolling out changes. By running surveys and focus groups, we ensured the adjustments aligned with what employees truly valued.

    Flexibility isn't just about remote work; it's about respecting individual needs. Empowering your team to choose benefits that matter to them can significantly boost engagement and satisfaction.
     
    Vikrant Bhalodia, Head of People Ops, WeblineIndia seen posing for a photo Vikrant Bhalodia, Head of People Ops, WeblineIndia

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    Implement Flex Benefits Credits

    After trying remote and hybrid work for years, we learned something important. People don't just want to choose where they work; they want their pay and benefits to fit their lives, too.

    We started something called "Flex Benefits Credits." It is like giving each employee their own benefits money. Instead of everyone getting the same, they choose what works best for them. My favorite one is? Our "Life Events Fund" - employees can use it for big life moments, like fertility treatments, elder care, or paying off debt.

    We asked our people what they needed and listened to their stories. A young parent said childcare was more important than a wellness app. Another employee shared how they were caring for parents while managing their own health. These stories helped us decide what to do.

    Here's my advice for HR leaders:

    Don't just add more benefits; make systems where people can choose what they need most. True flexibility is not just about work hours or where they work (home or office). It is about trusting them to pick the benefits that help their lives the most.
     
    Jan Lutz, Director HR | co-founder, Sustainability Jobs List seen in white color shirt and black color suit Jan Lutz, Director HR | co-founder, Sustainability Jobs List

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    Switch Carriers for Better Options

    Our medical plan renewal came back this year at a much higher rate than we anticipated. We worked closely with our broker to identify pathways that would enable us to continue offering strong benefits without adversely impacting our overall financial health. For years, we have had a philosophy that offers 100% paid benefits to all of our employees and their dependents, and we wanted to do our best to honor that belief system. 

    After working through a variety of creative solutions, we made the choice to switch carriers for the first time in our company's history and provide multiple options for our employees in their health coverage. One of those options would be to stay with our existing strong medical plan but pay to have spouses remain active on the plan, while the other would be to shift to a higher deductible but have the benefit remain 100% covered. 

    The key to this was a transparent presentation about our decision-making process as part of our rollout, and our employees understood and applauded our intentionality around living our values while continuing to focus on what our amazing team wants. We were able to successfully keep our people and our business needs in balance, and look forward to our coverage through 2025!
     
    Mike Kohn, Chief People Officer, Kevel seen with a bright smile on his face Mike Kohn, Chief People Officer, Kevel

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    Review Maternity and Parental Leave

    We all know that benefits are personal, and people want to see more in their benefits selections. We are in the midst of migrating to a new HR platform and new benefits plans. Here is what I learned regarding all types of information flooding in. 

    Maternity and parental leave is top tier. Gen Z are having families and don't want to be out of pocket. That means with no leave options, they have to take it as unpaid. Figure out the long-term plan and review your short-term and long-term disability options. 

    New hires are coming in the door, if not before, asking to show them the benefits. They mean it, too. If they don't stack up, then they can simply pass you over for someone who is offering the benefits that are needed. 

    One other benefit you should review is life insurance and long-term care options. If the employer pays for the option, it is a better cost to the employee and reduces the necessary paperwork that you have to complete to get the best benefits, like a statement of health. 

    Lower dental and vision are top-tier. Plans for employees only with no cost for dental, vision, and medical. That's a good look. Partially funded Health Savings Accounts with no contribution required to receive the employer contribution. 
     
    Tanya Turner, MBA, SHRM-CP, PHR, HR Director, SALTO Systems, Inc. seen sitting casualy on a flat platform Tanya Turner, MBA, SHRM-CP, PHR, HR Director, SALTO Systems, Inc.

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    Offer Wellness Sabbaticals for Growth

    As managing partner of a recruiting firm, I'm often taking cues from other companies when it comes to benefits and perks. It's a great source of inspiration, and because I'm also working with candidates daily, I'm able to quickly sort out which ideas are worthwhile.

    Right now, I'm noticing a lot of companies offering Wellness Sabbaticals. The name is a little hokey, but it's basically an extended time-off aimed at supporting mental health and long-term personal growth. Typically, these sabbaticals are offered after a certain period of employment, allowing employees to take a few weeks or even up to two months to pursue personal passions, learn new skills, volunteer, or focus on wellness without the pressure of work. The hope is that employees will be more motivated and engaged with this to look forward to, improving retention rates and ensuring a dedicated workforce. It's also an opportunity for workers to prep for internal advancement.

    Candidates I've spoken to love the idea, and we are seriously considering offering the perk to our own workers in the future.

    What I like about it is that, unlike traditional PTO, a wellness sabbatical focuses on development. Workers come back from their breaks not only recharged but reskilled and creatively inspired.
     
    Siena Burwell, Managing Partner, Surf Search seen with cute smile on her face Siena Burwell, Managing Partner, Surf Search

    Author Bio

    Adrian James, Product Manager at Featured seen posing for a photo in a outdoor background Adrian James is a Product Manager at Featured.

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    ePub Issues

    This article was published in the following issue:
    January 2025 Employee Benefits & Wellness Excellence

    View HR Magazine Issue

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