Cafeteria Benefits

A cafeteria (or flexible benefits) approach is an arrangement that gives employees a choice over the mix of salary and benefits they receive.

For employers a flexible approach can mean better targeting of benefits and raises awareness of the complete reward package. For employees this means choice and the ability to tailor benefits towards life changes such as marriage or impending retirement.

Cafeteria benefits may not always be the right approach, but introducing an element of flexibility need not be a complex process. Many flexible benefits are offered using salary sacrifice arrangements. For example, salary sacrifice can be a simple way of increasing pension contributions without additional cost. The saving in employer National Insurance contributions can be used supplement the pension contribution.

Contact us for further discussion on whether a flexible benefit approach may enhance your total reward package for staff.