Question

Which of the following is a disadvantage of providing flexibility in benefit choice? Group of answer choices There is a risk that these plans would increase the attrition rate. The flexible benefits plans are typically discriminatory in nature. There is a risk that employees may choose an inappropriate benefits package. The flexible benefits plans do not cover higher-risk employees.

Answer 1

The main disadvantage of providing flexibility in benefit choice is that -There is a risk that employees may choose an inappropriate benefits package.

Explanation:

Let us consider the various options given:-

• There is a risk that these plans would increase the attrition rate:The flexibility benefit package does not lead to an increase in attrition rate  rather it is a measure to hold back the employees
• The flexible benefits plans are typically discriminatory in nature:The plans are not discriminatory because it is up to the disposal of the employees to select a flexible benefit plan of their choice.e nature of the flexible benefit plan cannot be discriminatory
• The flexible benefits plans do not cover higher-risk employees-No such option is mentioned in the flexible benefit plan

Thus we can say that -The main disadvantage of providing flexibility in benefit choice is that -There is a risk that employees may choose an inappropriate benefits package.