Flexible benefits are the name of the game when it comes to recruiting–and retaining–top talent. But when so many companies are reviewing their benefits strategy to be among the best, how can your benefits package stand out? Enter the flexible benefit allowance.
In this blog, we’ll walk you through what flexible allowances are, plus ten fresh ideas for types of allowances you can offer your team.
What are flexible benefits allowances?
A flexible benefit allowance is a pre-determined amount of money that your employees can spend within a certain benefits category. This gives employees the chance to tailor their benefits to their personal needs, instead of a typical one-size-fits-all benefits benefits package.
Advantages of flexible benefits allowances
Flexible allowances don’t just benefit your team. Here are a few ways they can boost your company as well.
- Increase employee engagement: When employees are given the freedom to spend on the things meaningful to them, they are more likely to really engage with their benefits. This is especially powerful for companies with teams in both offices and “on the ground” (e.g. in retail stores, factory environments, care facilities, etc.), where employees may feel that benefits are an ‘office worker thin’, or there may be less opportunity to log into their benefits portal.
- Boosting productivity: Taking care of their home needs means employees have more capacity to show up as their most productive selves at work.
- Boost employee attraction: A truly flexible benefits package can really set you apart from other employers, making you more attractive to talent.
10 Flexible Benefit Allowances Ideas
What exactly can you offer as a flexible benefit allowances? Well, that’s completely up to you. A flexible allowance can cover anything (yes, anything!), but here are a few ideas to give your new allowance benefit some inspiration.
1. Commuter budget
Many employees have the cost of commuting on their minds. A commuting allowance could be used for public transit, parking fees, or fuel costs, which could be especially valued in cities where commuting costs can be high.
2. Wellness allowance
Wellness allowances can cover a lot of bases – from gym memberships and fitness classes to meditation apps and nutritional counselling, you can promote better health and wellbeing both physically and mentally.
3. Learning and development budget
Offering a quarterly or yearly allowance for courses, workshops, conferences, or books supports continuous professional growth and development, benefitting not only your employees’ career development, but also the work they bring to your table.
4. Tech allowance
In a work world that is more tech-reliant than ever, it’s important to be up-to-date technologically. Employees can use a tech allowance to purchase or upgrade tech like laptops, monitors, or phones to really enhance their efficiency.
5. Creativity Allowance
It’s hard to make time to get creative, and with cost of living increasing worldwide, it can feel hard for employees to justify the cost when employees have bills that need paying. A creativity allowance is an outside-the-box idea that can be used toward art classes or supplies, music lessons, or photography courses, helping to nurture employees’ creative talents – which can translate into innovative thinking at work.
6. Charity allowance
For businesses aiming to improve their ESG efforts, providing a budget to donate to charity not only supports employees’ desire to give back to the community but also boosts corporate social responsibility. This allowance can be allocated yearly or even quarterly and be used toward a charity of the employee’s choice, so your company can do good where it really counts.
7. Work-from-home allowance
For those companies with predominantly desk-based remote staff, a work-from-home allowance can be particularly helpful. This can include reimbursements for home office equipment, internet bills, or even co-working space memberships, supporting employees in creating a productive work environment at home.
8. Green allowance
Other ESG efforts can be worked toward with a “green” allowance. This allowance can be used towards environmentally friendly purchases like reusable products, or contributing towards renewable energy projects, reflecting a commitment to sustainability by both your employees and your company.
9. Team building budget
Give your teams a boost with a team social budget that they can use for whatever activity makes the most sense for them. Allowances for team activities or retreats can really enhance morale, which is essential for a collaborative work environment.
10. Flexible allowance
We saved our favourite for last. The most flexible of all–the flexible benefit allowance! Perhaps the most flexible of all, this allowance can be used at the employee’s discretion for anything they need (really, anything). Whether that be a nice cup of coffee, their streaming subscriptions, or anything else they can think of, providing your employees with the gift of choice is the best benefit they could ask for.
Speak with an expert today to learn more.