FLEXIBLE BENEFITS Meaning and
Definition
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Flexible benefits, also known as cafeteria plans or flexible spending accounts, refer to a compensation strategy that allows employees to select and configure their workplace benefits according to their individual needs and preferences. Rather than offering a fixed and standardized benefits package to all employees, flexible benefits provide a range of options to choose from, enabling individuals to tailor their benefits package to suit their personal circumstances.
Under a flexible benefits program, employees typically receive a specific amount of money, known as a benefits credit or flex credits, which they can allocate towards various benefit options. These options commonly include health insurance plans, retirement savings plans, life insurance coverage, dental and vision benefits, dependent care assistance, and other perks such as wellness programs, gym memberships, or tuition reimbursement.
The primary purpose of flexible benefits is to acknowledge the diverse needs and preferences of employees within an organization. By providing a range of choices, employers aim to enhance employee satisfaction, engagement, and overall well-being. Such flexibility allows employees to prioritize the benefits that align most closely with their unique situations, such as opting for additional health coverage if they have a family, choosing a retirement plan that offers greater investment options, or selecting certain wellness perks that suit their lifestyle.
Flexible benefits can be an effective tool for promoting employee retention and attracting new talent, as they demonstrate an employer's commitment to accommodating individual needs and fostering a supportive work environment. They also offer employers the flexibility to manage costs, as employees take on a more active role in selecting and funding their benefits based on their individual circumstances.
Common Misspellings for FLEXIBLE BENEFITS
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Etymology of FLEXIBLE BENEFITS
The word "flexible benefits" is made up of two parts: "flexible" and "benefits".
The term "flexible" comes from the Latin word "flexibilis", which means "capable of being bent" or "pliant". It is derived from the verb "flectere", meaning "to bend". The Latin root indicates the idea of adaptability or being able to adjust and change according to different circumstances.
The word "benefits" is derived from the Latin word "beneficium", which means "good deed" or "kindness". It is a combination of "bene" (meaning "well" or "good") and "facere" (meaning "to do" or "to make"). Thus, "benefits" refer to something advantageous, helpful, or of value in terms of compensation or rewards.
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