THE IMPACT OF FLEXIBLE BENEFITS ON EMPLOYEE SATISFACTION: A FIELD STUDY

Authors


  • The authors wish to thank LaNette Zimmerman, Nancy Johnson, Mary Zastrow, and Candace Walker Brent for their assistance on this project; and Herb Heneman, Randi Huntsman, and three anonymous reviewers for helpful comments.

  • An earlier version of this paper was presented at the 1990 meeting of the Academy of Management, San Francisco, CA.

and requests for reprints should be addressed to Alison E. Barber, Eli Broad Graduate School of Management, East Lansing, MI 48824-1121.

Abstract

This study examines the attitudes of 110 employees of a financial service organization before and after the introduction of a flexible benefit plan. A large, statistically significant increase in benefit satisfaction was observed following implementation, as was a smaller significant increase in overall satisfaction. Employee understanding of the benefit package also increased significantly. No significant relationships were found between demographic characteristics and responses to the flexible plan. Potential confounds due to the complexity of the intervention are discussed. Future research is called for to examine the processes through which flexible benefits impact worker reactions and to examine the impact of flexible benefits on behavioral responses such as attraction and retention.

Ancillary