Flexible reward

Whereas a few years ago, personnel budgets were expanding to attract more staff and retain experienced employees and additional (“new age”) benefits were being offered in order to meet this objective, HR departments are now being confronted with frozen or declining budgets whilst they still need to accommodate the expectations of their key employees. On top of this, the challenging economic circumstances are demanding even greater flexibility and drive from the workforce. It is therefore essential that the best possible use is made of available personnel budgets and that, instead of giving new benefits “on top”, the existing budget is optimised and adapted to the individual needs of the employees.

PricewaterhouseCoopers experts can help you to implement flexibility in your reward scheme within the existing tax and legal framework.

Flexible Reward offering

In a Flexible Reward scheme, an employer offers all or some of its employees a (clear-cut) choice on how their compensation package is made up.

The aim is an optimum net/total cost ratio, whilst offering you reassurance in the faith of a fully legally compliant solution.

A Flexible Reward scheme can be set up in a variety of ways and can consist of different elements. PricewaterhouseCoopers provides tailored assistance. Tailored to your needs for assistance and tailored to your reward scheme.

• a one-off Flexible Reward exercise, or a continuous process allowing for individualised and customised flexibility
• Flexible Reward for the entire company or modulated for a specific group or an individual staff member
• a flexible package composed of “new age” benefits or standard compensation and benefits components that already exist within the company today

Our Flexible Reward methodology

We use a six-step plan to evaluate the feasibility of a given Flexible Reward arrangement.

1. Short-list the components you wish to make flexible
2. Analyse the constraints and opportunities for each
3. Choose the components to be made flexible
4. Simulate the impact of those choices using a calculation tool
5. Carry out a financial cost/benefit analysis
6. Communicate, implement and ensure follow-up