Antecedents and consequences of the introduction of flexible benefit plans in China
Author(s)
Lin, Zhaohong
Kelly, John
Trenberth, Linda
Griffith University Author(s)
Year published
2011
Metadata
Show full item recordAbstract
The present study had two aims. The first was to explore the extent of flexible benefit plans (flex plans) within China and to make predictions about future trends. The second aim was to examine the relationships between the use of flex plans and two measures of labour market performance: the ability to attract essential employees and the level of labour turnover. The results from a survey of 324 firms in China reflecting a response rate of 32.4% showed that although there are presently a limited number of firms that adopt flex plans, the number is likely to increase in the next few years. Second, the probability of the ...
View more >The present study had two aims. The first was to explore the extent of flexible benefit plans (flex plans) within China and to make predictions about future trends. The second aim was to examine the relationships between the use of flex plans and two measures of labour market performance: the ability to attract essential employees and the level of labour turnover. The results from a survey of 324 firms in China reflecting a response rate of 32.4% showed that although there are presently a limited number of firms that adopt flex plans, the number is likely to increase in the next few years. Second, the probability of the adoption of flex plans was not found to vary with the mode of ownership and firm location. Third, flex plans were found to be adopted by firms for several practical reasons including their perceived role in cost containment, improved recruitment and retention, enhancement of job satisfaction and labour productivity. The take-up of such plans, however, was found to be inhibited by perceived administrative burdens and costs, and the limited number of staff qualified in benefit provision. Finally, the adoption of flex plans was significantly related to labour turnover and improved recruitment capacity. Keywords: China; employee benefits; flex plans; labour market performance; reward systems
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View more >The present study had two aims. The first was to explore the extent of flexible benefit plans (flex plans) within China and to make predictions about future trends. The second aim was to examine the relationships between the use of flex plans and two measures of labour market performance: the ability to attract essential employees and the level of labour turnover. The results from a survey of 324 firms in China reflecting a response rate of 32.4% showed that although there are presently a limited number of firms that adopt flex plans, the number is likely to increase in the next few years. Second, the probability of the adoption of flex plans was not found to vary with the mode of ownership and firm location. Third, flex plans were found to be adopted by firms for several practical reasons including their perceived role in cost containment, improved recruitment and retention, enhancement of job satisfaction and labour productivity. The take-up of such plans, however, was found to be inhibited by perceived administrative burdens and costs, and the limited number of staff qualified in benefit provision. Finally, the adoption of flex plans was significantly related to labour turnover and improved recruitment capacity. Keywords: China; employee benefits; flex plans; labour market performance; reward systems
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Journal Title
The International Journal of Human Resource Management
Volume
22
Issue
5
Subject
Organisational Planning and Management
Business and Management
Marketing
Policy and Administration