The impact of flexible benefits on employee satisfaction: a study of the South Korean public sector

Abstract

Anecdotal evidence and theoretical research highlights the role of flexible benefit systems (FBS) in enhancing employee satisfaction. While this is supported by some empirical evidence, most findings mainly pertain to the 1990s and North America and the private sector. Fewer studies have used other national settings or the public sector. Therefore, this study used a large sample of employees in central government departments in South Korea to examine the impact of FBS on levels of employee (benefit and job) satisfaction at two points in time. This was pre- and post-FBS in the same departments and the control departments continuing without FBS. Our findings suggest that the benefit satisfaction of employees increases with FBS and although job satisfaction was also positive, it was not statistically significant. The wider implications and relevance of our findings are also elucidated.