The Keys to Core/Flex Mobility Program Success
The demand for flexibility in corporate mobility programs has rapidly shifted from a trend to a necessity. This change reflects our cultural move towards on-demand lifestyles, where extensive choices in daily activities—from streaming and online shopping to digital banking—are now the norm. Companies too, are embracing this type of flexibility as a tactic to attract talent in tight employment markets, a way to enhance the employee experience, and an approach to managing costs.
Across industries, firms are adopting diverse strategies such as policy tiers and benefits, with the core/flex program emerging as a popular choice. This model supports various mobility strategies, including managing exceptions, controlling costs, and offering personalized experiences to employees. Let’s explore the core/flex program to further look at how companies are implementing these strategies to their programs to meet the evolving needs and preferences of today’s workforce.
What is a Core/Flex Program?
Core/flex programs are a customized program structure whereby a relocating employee receives a set of core benefits, with flexible (“flex”) benefits available for use as needed. The core set of benefits are usually those deemed essential to a move, often determined by company philosophy and mobility goals, while the flexible benefits are those that are geared toward providing options for supporting the employee’s individual needs. The core components can remain consistent throughout the mobility program or vary depending on the policy tier. It is recommended to adjust the availability of flex benefits according to each tier.
How Do the Flex Benefits Get Chosen?
Depending on company culture and mobility goals, the transferring employee or new hire could choose the flex benefits from a set framework or may need to be approved by the business (based on company budget or recruiting need). Today, most Cornerstone clients incorporate employee choice in their programs, allowing a more personalized alignment of benefit to the relocating employee’s needs.
There is flexibility (sorry!) in how flex benefits are offered. Here’s an overview of the two most typical methods for offering flexible benefits:
Flex Menu
With a flex menu, the employee or business can choose a limited number of flex benefits from the proffered elements. For example, “choose 3 flex options from the 5 available.” This provides the employee with the ability to choose the policy components most important to their individual situation without the focus on cost. It’s easy to understand and does not require the same sort of maintenance that a value-based program requires.
Value-based Flex Benefits
Flex benefits are tied to a company-determined value for each flex benefit. Employees are given a value based “budget” to spend on the flex benefits. The budget and values are usually delineated by dollars or points. While this methodology can allow for some transparency to the cost of benefits, it can also result in employee bargaining or even dissatisfaction if employees are unable to maximize the budget to its full extent. In addition, the budgets and benefit values need to be evaluated regularly to ensure they are up-to-date and competitive.
Core/Flex Structure
A well-defined structure is essential for a successful core/flex program, embedding program controls into the process and ensuring alignment with corporate goals. Without structure, the program can turn into a free-for-all that results in increased costs and never-ending employee negotiations. A few examples of how core/flex can be structured include (but are not limited to):
- Core benefits the same for all; flex benefits available by tier/job level
- Core AND flex benefits differ by tier/job level
- Core benefits with set flex package options (usually limited to two or three options) that the employee chooses
When determining the most appropriate core/flex structure, assess your company’s administrative processes for the overall mobility program as well as company culture. Ensure the program is easy to use and easy to understand for both internal stakeholders and relocating employees.
Core/Flex Elements
As companies explore this mobility program approach, other common questions include what to offer as core, and what elements to offer as flex. Because core/flex programs are highly customized, there is no set standard. Even “typical” core benefits vary widely. Core elements can include only a household goods move and final move trip or can look like a traditional program with most program elements offered as core. Much depends on the intent of the core/flex program (are cost savings the primary goal?) and to whom the program is being offered (lower level only or across the board?), as well as the company culture (is employee experience important?).
Once the core benefits are determined, the flex benefit offerings can depend on the chosen program structure as well as the overall budget. A pitfall some companies fall into is offering too many flex benefits. Employees may get frustrated if they see the abundance available to them, but program or cost limitations effectively restrict them from most of the benefits. Another possible side effect of too many flex benefits is employees feeling permitted, even free to utilize that abundance, resulting in escalations or exception requests. On the flip side, offering too few flex benefits also can result in employee frustration and possibly increased exceptions. Best practice is to use the “Goldilocks” philosophy of just the right amount of flex benefits for each policy tier.
Is Core/Flex the Right Fit?
Core/flex is a hot topic in the global mobility space and is often the subject of heated debate. Proponents of core/flex feel the benefits outweigh the negatives, and vice versa. A thoughtful, strategic approach to core/flex can help determine whether this type of program is the right fit for your company. A clear-eyed analysis of the benefits and challenges of core/flex is an important first step.
Among the benefits of core/flex are:
- The ability to tailor mobility more closely to business needs
- Provide critical employee support
- Increased flexibility
- More accurate budgeting
- Reduced exception requests
The challenges of core/flex include:
- Administrative difficulty
- Increased complexity
- On-going internal stakeholder training required to ensure fair and consistent application
- Regular maintenance to ensure budget and benefits values are current if a value-based program
- Possible disconnect between budget, recruiting requirements, and employee requests
Next Steps
Interested in exploring a core/flex program? Cornerstone has developed a Core/Flex Program Development Checklist to assist companies with the journey to increased mobility program flexibility. Please click here to access the checklist.
You Have Questions. We Have Answers.
Cornerstone is your go-to resource to help you determine the best course of action and best approach for your Global Mobility project.
Please reach out to us at consultingservices@crgglobal.com for any assistance or questions you may have. We’re happy to provide you with further information on this topic or any other trends in the mobility industry.
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