On the development and classification of flexible benefits in China

Mondo Workplace Updated on 2024-01-29

The development of the impeachment in China

1. Since the 70s of the 20th century, some enterprises in Europe and the United States have begun to provide different welfare content for the different needs of employees, and the elastic profit model has gradually emerged.

2. Around 2008, the first practitioners of the company began to enter the Chinese market, and the earliest practitioners were mainly foreign-funded pharmaceutical companies, hoping to achieve the purpose of welfare integration and control by learning from the tools of the group. At this stage, the bullet profit subjects are generally consistent with the group headquarters, mainly commercial insurance, supplementary pension and FSA (flexible spending account).

3. With the gradual localization of the bullet profit operation in China, the purpose of the company's implementation of the bullet profit operation has gradually diversified, and it has begun to inject new elements into the bullet profit operation. In terms of welfare subjects, in addition to group commercial insurance and supplementary pension, individual commercial insurance, health management programs, and welfare** have all become popular elastic options. Practitioners, in addition to the pharmaceutical industry, leading enterprises in the automotive industry, FMCG industry, cutting-edge manufacturing, Internet and other industries, as well as some leading private enterprises, have begun to implement elastic profits.

In addition, with the rapid development of China's Internet industry and the popularization of mobile communications, the mobility and digitization of the elastic profit project have surpassed the country of origin, and the application of data has become more and more mature.

Nowadays, in China, impeachment has become a new trend in benefits management. According to Mercer's 2022 corporate elastic market trends and insights, more than 200 Chinese companies (all industries, mainly foreign-funded enterprises) participated in the survey40% have offered an impeachment plan to their employees, and94% agree that the trend of benefits management is the future。In businesses that have not yet offered a bullet profit program,76% of companies have plans to implement this benefit program。Within the foreseeable scope, with the update and iteration of human resource digital technology and the continuous improvement of market popularity, more and more enterprises will consider providing employees with flexible options in the next 2-3 years.

Through this survey, it is not difficult to find that the enterprises that have implemented the elastic profits are mainly leading enterprises in various industries in first-tier cities, and have the following characteristics:

(1) Have a clear employee welfare strategy.

(2) The welfare budget is sufficient, with perfect statutory benefits and other supplementary benefits.

(3) The management pays more attention to and supports welfare

Impeachment in ChinaMain types and features

Represented by state-owned enterprises and large private enterprises

1) The welfare budget is sufficient, with comprehensive supplementary commercial insurance and health check-up benefits, but it is not open to employees to choose.

2) Open festival budget optional, no need to plan and design, budget special funds.

3) Focus on cash-based and in-kind welfare products, emphasizing the cost-effectiveness of welfare products.

4) Quasi-e-commerce standardized platform, biased towards C-end shopping experience.

The general welfare budget of state-owned enterprises and large private enterprises is relatively sufficient, and supplementary welfare subjects such as commercial insurance and health examination are provided for employees, and the program is relatively comprehensive. However, these companies generally do not use these benefits as a flexible option, but instead open their holiday budgets in the form of points to employees in cash or physical products of their choice.

The characteristic of this kind of elastic profit plan is that there is no need to design the plan in the early stage of the project, and it is necessary to find the B-end e-commerce platform in the market to compare factors such as categories, account periods, and logistics timeliness. It should be noted that there may be more operational work after the launch: for example, the most sensitive employees may make multiple price comparisons of goods, or they may have complaints; Time-sensitive employees complain about logistics time, etc. Although the platform will promise certain service standards in the bidding stage, it is many merchants and logistics companies downstream of the B-end platform that really provide services, and it is inevitable that there will be accidents in the process of practice.

Represented by foreign-funded enterprises

1) The rules for benefits and points are relatively complex, and the optional benefit design needs to be in line with the company's welfare concept and market positioning.

2) The theme of welfare generally revolves around "health", "pension" and "risk prevention".

3) The platform needs to be less customized according to the plan, and it is usually used at low frequencies every year.

Foreign-funded enterprises are the main force in the implementation of elastic profits, and under the influence of the group headquarters, the optional welfare subjects are mainly commercial insurance and health management. Some companies with sufficient budgets will also include flexible programs for retirement, savings, and annual leave purchases.

This kind of profit plan is generally designed around the themes of "health", "pension" and "risk prevention", which is closely linked to the welfare concept of the enterprise. Therefore, even if such enterprises have a flexible annual welfare budget to choose from, welfare managers will isolate "annual holiday points" and "health points", and do not regard welfare as the main body of the bullet profit plan.

An Internet enterprise with abundant IT resources

and foreign-funded enterprises with sufficient budgets

1) The plan design is very characteristic of the company and reflects the corporate culture and values.

2) Highly customized platform functions, which have high requirements for user mobile experience and scalability.

3) It is easy to generate employee multi-frequency login and centralized login activities.

On the basis of the second type of benefit plan, with the deepening of the digital practice of benefits, more and more projects beyond the scope of traditional employee benefits have been included in the platformFor example, recognition incentives, long-term service awards, charity activities, and some internal sales activities linked to the company's business.

These projects are very characteristic of the enterprise in the plan design, so the customization of the elastic platform is very high. Enterprises that practice this kind of elastic profit plan are either Internet companies with their own development teams, or large enterprises with sufficient project budgets that can invite foreign aid for development.

In terms of the implementation effect, all of them have achieved high employee satisfaction or effectively built the employer brand. However, in the face of beautiful data, welfare managers also face many challenges, such as cumbersome communication between internal and external multi-business and multi-department; complex follow-up operations; Pressure to continue to improve employee satisfaction, etc.

A comprehensive elastic profit plan is not achieved overnight, and enterprises can choose the type and direction that suits them according to the actual situation, and gradually improve and expand the flexible system in stages. In this process, benefits managers can continuously collect feedback from employees and internal teams, and flexibly adjust and upgrade the implementation of the program based on the feedback, so as to realize the transition from partial resilience to full resilience.

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