The Impact of Flexible Benefits Plan on Organization Commitment and Intention to Quit

Abstract

In the past decade, the employee benefits industry has undergone considerable change with regard to the types of benefits available at the workplace. Plan sponsors have experimented with a variety of strategies to developing creative ways to tailor their benefit plans to the varying needs of employees. One approach set up is the flexible benefits plans. Thus, the focus of this paper is to develop economic study, test the relationship between benefits plan (traditional and flexible) as independent variables and organization commitment, employees’ intention to quit as dependent variables on one side, on the other side we test these relationship according to the employees’ demographic characteristics as control variables, with data from a sample of BHP company in Algeria and in headquarters in Australia, a total of 330 respondents were randomly selected as the sample of the study, data was analyzed by (IBM SPSS statistics 20), the study is divided into two parts. In the first part, our result prove that both of traditional benefits plan and flexible benefits plan are related with organization commitment and intention to quit, but the workers under flexible benefits plan demonstrated a higher commitment and lower intention to quit than traditional plan. The second part, the results also show that the demographics characteristics can play important role in the determining of employees’ behavior, we prove that there is different in term of commitment and intention to quit among employees according to the differences in the demographic characteristics.

DOI: 10.5901/mjss.2014.v5n8p136