A Study of the Determinants and of the Impact of Flexibility on Employee Benefit Satisfaction

The purpose of this study was to examine the influence of individual characteristics and organizational justice on employee benefit satisfaction, and to explore the role of flexible benefit plans. Employees from three Canadian organizations were surveyed. A total of 285 usuable questionnaires were returned, for a response rate of 42%. The variables in the model accounted for more than 40% of the variance in benefit satisfaction. The findings showed that while distributive and procedural justice were useful in predicting benefit satisfaction, the concept of process justice had the greatest effect on satisfaction. Among the variables, communication had the greatest impact. The effect of flexibility, although significant, was ambiguous. Sociodemographic factors had a very limited effect when perceptual variables were introduced into the equation. The paper also sets out the limitations of the study and its practical implications, and makes some suggestions for future research.