FLEXIBLE SOCIAL PACKAGE – A REQUIREMENT FOR A MODERN LABOR MARKET OR AN OPTION FOR “RICH” EMPLOYERS?

Abstract

One of the significant elements that determine the involvement of personnel and affect the formation of the concept of an Employee Value Proposition (EVP) is the quality of the social package provided by the company. Despite the widespread practical distribution of social packages with a fixed set of benefits, they have an insufficient motivating role and are characterized by a low efficiency of spending on social support for personnel. The purpose of this study was to substantiate the feasibility of introducing a flexible social package by the employer and to develop recommendations for its formation. Information for the purposes of the study was obtained through online surveys of employees and HR managers of a number of domestic companies of various sizes and industries; open secondary data were also used. Based on the study, the following conclusions were made: 1) the very existence of a social package and its quality is a significant factor when an applicant makes a decision to apply for a job in this company; 2) the effectiveness of fixed social packages is low, the benefits paid by the company are demanded by employees by less than 60%; 3) the ability to choose benefits at their own discretion is important for the employees of the company; 4) employers recognize the high motivating role of a flexible social package, however, in their opinion, a serious constraining factor is the existence of financial restrictions on the growth of the budget for social programs; 5) in addition to financial, employers cite the complexity of software development and administration, as well as difficulties in interacting with social service providers, among the main barriers to the formation and implementation of a flexible social package; 6) the majority of companies that have already implemented the flexible benefits program note an increase in the values ​​used to assess the effectiveness of indicators. The study made it possible to formulate a number of general recommendations for HR leaders planning to switch to a system of flexible benefits.

Keywords

employee engagement, flexible social package, benefitsand privileges, staff motivation, benefits package, Employee Value Proposition (EVP)

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About the Authors

Yuliya V. Lazich – PhD in Economics, Docent; Associate Professor, Yaroslav-the-Wise Novgorod State University, Veliky Novgorod, Russia. E-mail: Yuliya.Kolmagorova@novsu.ru. SPIN РИНЦ 8591-7475. ORCID 0000-0003-1425-8398
Irina N. Popova – PhD in Sociology, Docent; Associate Professor, Ural State University of Economics, Ekaterinburg, Russia. E-mail: ipopova@k66.ru. SPIN РИНЦ 7235-4783

For citation

Lazich Yu.V., Popova I.N. Flexible Social Package – a Requirement for a Modern Labor Market or an Option for “Rich” Employers? // BENEFICIUM. 2021. Vol. 2(39). Pp. 48-54. (In Russ.). DOI: 10.34680/BENEFICIUM.2021.2(39).48-54