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Flexible benefits packages can lead to confusion among employees who may struggle to understand their options, resulting in suboptimal choices. Additionally, they can create administrative complexities for HR, requiring more resources to manage and communicate the various benefits effectively. This flexibility may also result in inequities, as employees with different needs might receive vastly different values from their benefits, potentially leading to dissatisfaction. Furthermore, employees might underutilize valuable benefits simply because they are unaware of them or find the selection process overwhelming.

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