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.