A form of flexible benefits which provides maximum choice to employees in determining the form of their remuneration package. Each employee chooses the benefit package that suits their individual needs from the ‘menu’ offered by the employer. The logic behind this is that employees at different stages in the lives or with different commitments and interests will want different benefits packages, rather than a standard package. Employees can choose which particular benefits to receive up to a predetermined value. Despite the attractiveness of this option, cafeteria benefits remain relatively rare owing to their administrative complexity.
Subjects: Human Resource Management.