Increasing Core Flex Policies
Over the last few years we have observed an increasing trend in the global mobility market of organization’s adopting core flex policies versus the more traditional tiered policy approach. Companies have recognized that one size doesn’t fit all. Greater flexibility is needed from a policy perspective to be able to address the challenges of different employee’s needs and to target costs to the benefits that truly matter to the employee.
What is a Core Flex Policy?
In a typical core flex policy, companies seek to find a balance between the employees’ needs and the overall needs of the business, not least the actual cost to the company. Most companies adopt a series of ‘core’ benefits that represent the organizations duty of care to the individual. Examples typically include immigration support, tax support, health care, and relocation airfares. These items are always provided to the individual and the business cannot flex these options.
Outside of the core benefit set, organizations are creating a series of flex benefits that the business can select whether they provide to the individual based on geographic needs, personal circumstances and overall cost.
Within this flex area, many organizations still look to adopt a very structured approach. Flexibility within ‘parameters’. While it may be acceptable for the HR user to flex the amount of a lump sum provided to the individual, organizations often look to ensure that a minimum amount is provided to the individual, but also to cap the maximum amount that can be provided so that overall costs can be controlled. These guardrails ensure that while there is an element of choice, the varying needs of the individual and organization are balanced.
Core flex policies free up valuable mobility team time by helping to reduce the number of exceptions that a program requires, while minimizing the time spent on the exceptions that do arise. But of course, with flexibility comes complication – with more parameters for the organization to consider and manage. That’s where AssignmentPro can help!
Technology Enabled Flexibility
AssignmentPro has recently been upgraded to include the ability for an organization to support core flex policies. Using the HR Authorization/Initiation feature, a HR user can now:
- Request an assignment
- Make core flex selections within policy guardrails
- Model different scenarios with real time visibility on the cost to the business
- Receive a full tax cost estimate and then route the initiation for approval
HR can now truly self-serve the policy parameters that they would like to have. Selected services can also be notified to your selected vendor partners through the Equus Ecosystem. And, by increasing self-service functionality, mobility teams have more time to partner with the business instead of administering tasks.
Contact us today to learn more.