What to consider prior to implementation
The successful implementation of a flexible reward system depends on several considerations.
To start with, companies need to have the right mindset, culture, and values. Prioritizing the voice of employees is no simple task. It requires a strong relationship of trust, and policies that support inclusivity, mutual respect, and openness to consensus. In unionized environments, this is even more essential as social partners are often involved in the conceptualization of such plans.
Organizations should also be mindful on how to fund flexible remuneration systems in the short to long run. This question is not only linked to financial resource planning but also to the existing workforce. Flexible programs require various degrees of maintenance which correlate with the complexity of benefits offered (and the recurrence of payout cycles). Therefore, HR professionals will have to take on additional responsibilities to support employees with their content, process, and administrative questions. These activities are often outsourced. If not, it’s still crucial to have internal ambassadors of this program who continue monitoring changing employee needs. The variety of benefits granted by the employer will define how closely those ambassadors will have to accompany individuals. Ultimately, the goal is that every employee understands the remuneration elements at his disposal and the choice impact. A good degree of employee autonomy, resourcefulness and maturity are all defining elements for a positive flexible reward experience.
On the other hand, it’s worthwhile mentioning that Belgium has no clear legal framework to regulate those plans. It’s therefore advised to have the selected benefits analyzed and approved by tax and social experts. Overlooking this part can have serious consequences for the company.
Finally, the implementation of flexible programs means that organizations will need to be cautious with data management and secure reliable IT infrastructures. It goes without saying that any digital ecosystem is only as good as the data that fuels it. Consequently, a most thorough data cleaning process should be put in place to systematically guarantee quality standards. That pre-requisite is central to maintain a good level of trust with employees. Due to high investments in time, money and resources, organizations usually externalize the digital implementation.