The paper 'Employee Benefits ' is a great example of a Management Assignment. Employee benefits are becoming increasingly important in the world of business today. (Markel, p. 23) states that they have a significant administrative and financial impact on an organization. Employees are now demanding for extra incentives in their respective jobs as the competition in the labor market intensifies. Employee benefits refer to any form of compensation given to employees other than the usual hourly remuneration. Employee benefits can be categorized as short-term and post-employment benefits. Short-term employee benefits refer to benefits that are entitled to an employee not more than twelve months of service they rendered.
Post-employment benefits on the other hand are offered to an employee after completion of his/her employment term. Additionally, employee benefits can be categorized as legally required and discretionary benefits. Legally required benefits are those imposed and mandated by the law such as the Workers’ compensation insurance program. Discretionary benefits on the contrary are benefits that a company chooses to offer to its employees. Discretionary benefits are used synonymously with flexible benefits as they can be altered by the company depending on prevailing circumstances or in response to employee demands.
Flexible benefits enable employees to choose from a variety of benefits that suit their desires and preferences. Flexible benefits can be used to encourage diversity. Companies that have grown out of acquisitions and have a wide geographical spread of corporate locations require flexible employee benefit programs to cater for the diverse workforce. The program should be able to accommodate employees moving from one country to another for purposes of career development. In addition to offering a range of benefits that can be tailored to meet the need of the entire workforce, this kind of rewards strategy may be seen to reinforce multinational and corporate brands.
Offering flexible benefits combined with correct recruitment and retention initiatives ensures adequate engagement of employees (Rosenbloom, p.297). Flexible benefits are also fundamental in ensuring equality in the workplace. With the increasing diversity of workforces in terms of generations, there is a need for flexible benefits as the needs between these generations vary considerably. The different generations such as the X and Y generations view benefits related to work-life balance, money, and health differently.
For instance, a young employee may want to spend more on a company car benefit than a pension. On the contrary, older employees will be more interested in making a contribution to their healthcare provisions and retirement pensions. With an aging workforce, it is important to adopt a benefits program in which the workforce is able to ‘ flex’ the benefits packages according to the seasonality of their lives. Rewards that are aligned to an individual’ s personal needs serve as a motivation and they enable them to acquire a direct interest in enhancing organizational success.
Job satisfaction is also an end result of flexible benefits and this is directly linked to employee retention. Employee benefits strategies are essential in keeping an organization highly competitive. First and foremost, it is important for the HR professional to constantly monitor legislation that affects employee benefits and assess their potential impacts. This is to ensure that the organization’ s employee benefits program is in line with federal, state, and local laws. For instance, healthcare reform laws will affect the way an organization administers its healthcare benefits.
Some of these legislations are quite complex and its successful implementation in an organization depends on the competence and expertise of the HRM.
Beam, Burton and McFadden, John. Employee benefits. Chicago: Real estate education, 2001.
Markel, Karen. Discretionary employee benefits. Alexandria: Society for human resource management, 2010.
Rosenbloom, Jerry. The handbook of employee benefits: Design, finding and administration. New York: McGraw-Hill, 2001.
Vance, Robert. Employee engagement and commitment. Alexandria: SHRM foundation, 2006.
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