Employee Benefits Programs Strategic Value
Strategic Value of Employee Benefits Programs
To attract, motivate, and retain good workers, companies need to define what an employee wants from the employment relationship. One way to define employee needs is to consider “total rewards,” which are everything an employee perceives to be of value resulting from working for the company. Benefits are a core element of total rewards and the ever-growing package of offerings have evolved. You must now work with the company to define precisely where the various programs will be categorized.
Write a six- to seven-page paper in which you do the following:
-Identify and discuss at least three important variables that almost always should be considered by organizations when providing employee benefits programs. Be sure the response is specific and relevant.
-Compare and contrast income protection programs and pay for time not worked programs, both of which are usual elements of benefits programs. How are the programs similar? Are they mandatory?
-Research and discuss at least four to five of what may be referred as “Other Benefits” that you could recommend to the management team as necessary elements for the benefits package. Hint: Flextime and product or service discounts are good examples.
-Develop an employee benefits package for any exempt or non-exempt position level of your choosing, making sure you support the selection of your program elements.
Note: The preferred method for presenting your benefits package information is using a table or exhibit, but either approach is not mandatory.
Examples: US Bank Benefits at a Glance and UW-Madison New Employee Benefits Summary.
Use at least four quality academic resources in this assignment.
The specific course outcome associated with this assignment is:
Design a strategic employee benefits package for an exempt or non-exempt position.
Strategic Value of Employee Benefits Programs
Introduction
Staff benefits initiatives are essential in every organization to enhance job satisfaction and employee commitment. The programs have a strategic value to companies because of the improvement in workers’ morale, job retention, and performance leading to the achievement of organizational objectives (Klonoski, 2016). The management of entities also perceives employee benefits initiatives as a critical avenue for attracting and recruiting highly qualified and competent staff. Organizations design employee benefits according to their staffing needs as there is no one-size-fits-all approach to the programs.
The Three Essential Variables to Be Considered When Offering Employee Benefits Programs
Legal Requirements
The legal provisions regarding employee benefits must be considered before designing a benefits initiative. The legal provisions may require a company to offer benefits packages (Beam & McFadden, 2001). Federal and state laws are also expected to monitor and direct the criteria for the provision and administration of employee benefits. For example, federal laws require all state employers to offer benefits, such as social security and workers’ compensation.
Cost and Contributions.
The cost to be incurred when offering a benefit should be considered. The management should ensure that the proposed employee benefits program is cost-effective. An organization’s management should ensure that there is adequate employment exchange where the costs of the benefit are shared between the employer and the employee (Atchison, Belcher, & Thomsen, 2010). The cost of the benefits plans should not outweigh the desired outcomes, such as improved job commitment and organizational performance.
The Specific Purpose of the Benefit
The aim of the employee benefits in the employment exchange should be considered. For example, employees perceive benefits as a security measure in their employment relations with the employer. However, employers may consider the benefits as a social concern and meeting legal requirements (Atchison, Belcher, & Thomsen, 2010). Employers can also initiate the benefits packages to facilitate staff retention and improve employee performance.
Comparison of The Income Protection and Pay for Time Not Worked Programs
Income protection programs are designed to cushion employees from experiencing financial constrains when not in active work due to disability, death of a family member, long-term illness, or loss of employment. People may lose income due to severe sickness or terminal disability (Atchison, Belcher, & Thomsen, 2010). As a result, some employers offer disability insurance to replace part of lost income for employees. However, time not worked programs are designed to compensate workers for the time they are not working within and outside the workplace. The benefits compensate for periods such as lunch breaks, time off vacations, sick leave, and holidays.
The purpose of income protection benefits is to offer different groups of workers a form of guaranteed income when they lose their sources of income, such as job loss, injuries, and retirement. They include disability income protection, medical reimbursement, and unemployment income replacement (Atchison, Belcher, & Thomsen, 2010). However, time not worked programs include paid sick leave, holidays, and vacations. They aim at ensuring that workers take adequate time to rest and participate in recreational activities. They also cushion employees from losing income for the time not worked when on sick leave.
The programs are similar because they both aim at guaranteeing employees some income when they take time off the job. They aim at compensating the workers for a perceived loss in income when engaged in activities outside the job (Atchison, Belcher, & Thomsen, 2010). Both programs ensure increased job commitment and satisfaction in enterprises. The employee benefits initiatives are not mandatory because they are initiated based on the employers’ and workers’ needs.
Other Benefits to Be Recommended to The Management as Critical Elements for The Benefits Package
Flextime Benefits
The management should include flexible work schedules in the benefits program. The flextime initiatives aim at enabling workers to have quality life leading to improved performance. For instance, employees can have a flexible work arrangement where they complete some tasks at home. They can work several days every week while having some days off to meet individual needs (Friend, 2020). The advancement in technologies has enabled flexible work arrangements to become a reality. Thus, the management should ensure that employees have a work-life balance through flextime benefits initiatives (Tomčíková, 2016). Flexible work schedules are used by contemporary employers to attract and retain top talents. For example, most workers prefer to have flexible work hours to pursue other needs, such as family responsibilities, recreational activities, and further studies.
Product/Service Discounts
The management should introduce product and service discount programs to motivate employees and increase job commitment. Employees can have the opportunity to clip coupons to save money. The leaders of an enterprise can also partner with the local retail and service companies to provide discounts to their staff members during specific times of the year, such as festive seasons (Friend, 2020). For instance, workers can be given discounts when purchasing items like groceries from supermarkets. Coupons can also be provided to workers in local restaurants frequented by employees during lunch hours to enable them to save money.
College Debt Assistance and Tuition Reimbursement
The management of an enterprise should include higher education loan repayment assistance in their benefits programs. There is an increased student loan crisis, which poses a critical challenge to most employees, particularly new hires (Friend, 2020). Organizations should initiate programs for assisting the workers in repaying their student loans to cushion them from significant income losses. Employers should also assist employees in paying their tuition fees as they seek to pursue advanced education to enhance their competencies and skills at the workplace.
Child Care Services
The management can include on-site child care services into its employee benefits packages. Most working parents have an urgent need for on-the-job child care services. The program can enhance job performance because employees can take care of their children while they work. For instance, child care services are designed to reduce stress among working parents (Friend, 2020). Discounts can also be offered to employees using child care services located near the workplace.
Wellness Programs
Organizations should introduce wellness initiatives in the workplace to improve employees’ health and job performance. The programs are designed to ensure that employees have a healthy living through the adoption of healthier lifestyles, such as physical activity (Tomčíková, 2016). The management should provide reimbursement for gym membership payments. They should create space for on-site fitness and organize events such as health weeks to enhance healthy living.
Development of an Employee Benefits Package for an Exempt Employee at The Middle Management Level
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Financial health benefits
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401-K savings plan
Pension plan
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The middle-level employee will be free to choose how to save and invest before and after making tax contributions. The employee will begin savings immediately after their second pay. The employee will be assisted in creating retirement income through the cash balance pension package. There will be an automatic enrolment of staff in the program. The employee is allowed to take the benefit after serving for three years or leave it until retirement. |
| Mental and physical health benefits | Medical and wellness | The employee will be offered a wide range of medical plans to promote their health. The company will pay the increases in premiums on medical insurance. The employee will access a comprehensive medical cover that caters for free screenings and prescriptions.
Other wellness support initiatives, such as counseling, will be provided to improve employee psychological health. |
| Provision of specialized support services
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Maternity support initiative
Healthy living program
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Workers will receive specialized maternity support to ease their tensions at work during pregnancy. They will be offered useful resources and information. The employees will also be offered flexible time hours and paid maternity leave.
Employees will be allowed to participate in physical activity. Events that champion healthy eating will be organized to enable employees to prevent lifestyle diseases. The company will reimburse 40% of the gym membership fees to encourage exercise among workers. |
| Supported parenting
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Childcare services
Breastfeeding breaks |
Employees will receive childcare support through the dependent care expenses program. The employer will pay 30% of the daycare expenses to cushion the employees from high daycare costs.
Workers will be given adequate time to breastfeed their young ones. Space is created for mothers to lactate their babies. |
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Financial incentives
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Transport reimbursement
Discounts, coupons and tuition reimbursement |
The employee will obtain commuter relief from the employer. The company will pay 20% of employee traveling costs per month. The employee will obtain discounts in the local retail stores. The worker will be reimbursed 40% of the tuition fees when pursuing further studies. |
Support for The Selection of the Program Elements
The 401-K savings and pension program elements are selected because they ensure employee’s income security in the future. They guarantee employees future income from their savings and interests to cushion them during retirement. The medical and wellness program elements are vital in promoting both the physical and mental health of employees (Jones, 2005). For example, they ensure that workers receive adequate healthcare leading to improved health and job performance. The maternity support program is critical in ensuring that employees and their spouses get adequate time for prenatal and postnatal care.
The healthy living program is included in the benefits package to enhance employee health by preventing lifestyle diseases such as hypertension. For example, workers can engage in physical activity and adopt healthy eating habits to achieve quality health (Jones, 2005). The supported childcare is essential to enable employees with infant caring roles to have a peace of mind at the workplace. For instance, mothers are reimbursed for high child care costs. Lactating mothers also get reprieve to breastfeed their babies within the workplace leading to a stress-free working environment. The commuter reimbursement, shopping discounts, and tuition reimbursements are included in the program to assist employees in income savings.
Conclusion
Employee benefits programs are significant in the growth of an organization. Most companies use benefits plans to promote staff retention and job commitment. The factors to be considered when designing an employee benefit plan include the purpose, costs and contributions, and the legal provisions on workers’ benefits. Income protection initiatives include unemployment insurance and retirement benefits that aim at cushioning workers for the loss of income when outside employment. However, the pay for time not worked plans include paid leave, sick leave, and holidays which aims at compensating employees for the time they are not at work. The other recommended employment benefits include wellness programs, product and service discounts, flexible work schedules, and childcare services. An employee benefits program for an exempt employee in the middle managerial level should have critical elements such as pensions and savings plans, medical and wellness, commuter and tuition reimbursement, and child care services.
References
Atchison, T. J., Belcher, D. W., & Thomsen, D. J. (2010). Internet-based benefits and compensation administration. ERI Economic Research Institute.
Beam, B. T., & McFadden, J. J. (2001). Employee benefits. Dearborn Trade Publishing.
Friend, L. (2020). Types of employee services. Retrieved from https://smallbusiness.chron.com/types-employee-services-2802.html
Jones, E. (2005). An overview of employee benefits. Occupational Outlook Quarterly, 49(2), 12.
Klonoski, R. (2016). Defining Employee Benefits: A Managerial Perspective. International Journal of Human Resource Studies, 6(2).
Kozak, B. (2010). Employee benefit plans. North Carolina: Carolina Academic Press.
Tomčíková, P. Ľ. (2016). Employee benefits and trends in the workplace.