JEDDAH – Flexible benefits offered by GCC companies have in turn seen a steady rise, according to recent findings by Mercer - the global leader in HR consulting, outsourcing and investments. Mercer forecast that governments in the GCC and the wider Middle East will most likely pass greater legislation in the next few years, making it mandatory for companies to provide benefits for their employees. As it stands now, the UAE has been moving in this direction with its prerequisite government health insurance for all employees, the report added. Following findings in Mercer's recent Total Remuneration Survey (TRS) – assessing market pay rates and benefits prevalence - figures between 2009 and 2011 showed that the number of companies offering a flex plan in the UAE has risen to 16 percent (from 9 percent). Elsewhere in the GCC, Qatar saw a rise to 15 percent (from 3 percent) and Saudi Arabia went up to 20 percent (from 3 percent). Flexible benefits plans allow employees to choose from a menu of offerings, 'buy up' from a core benefit to a more valuable one, or trade from one benefit to another. Paul Beaton, Employee Benefits Consultant at Mercer, said "while it is yet to be uncovered whether or not these are on par with fully fledged flexible benefit plans seen in Europe and the United States, there is definitely positive growth in the direction of putting the right to choose - at least to some extent - in the hands of the employee." With advantages to both parties, employers benefit from being able to meet the diverse needs of their workforce and in turn increase employee satisfaction - leading to higher levels of productivity - better manage and understand financial costs for benefits and be able to promote the company and brand as an attractive destination for new recruits. "Well-designed flex plans have proven to be a key cost containment method when it comes to benefits," said Beaton. "By assessing the needs of the dynamic employer, companies are in a position to better distribute their resources where they are needed, and will be appreciated, more. They remain competitive in the marketplace, are better able to retain employees and solicit employee engagement." On the other hand, employees are drawn to companies that allow them the freedom to choose from tailor-made packages that fit their individual needs. "Employees flock to companies that have their best interest in mind. The idea of flexible benefits makes their needs a priority and allows them to appreciate and stay with the company for the long haul." – SG
