Benefit packages are a very important aspect of employee compensation these days. Benefits can account for almost one-third of employee compensation and is becoming more and more prevalent. How can companies come to terms with the appropriate benefits they offer that also works with the needs of employees? This package must be designed to fit the company not only in cost but in quality. Since a benefits package is one-third of compensation, it needs to be on the up-and-up to retain employees and attract new talent. I read a piece of literature that discusses what goes into a package that encompasses both of these things. It provided three main questions to ask when designing a plan that works. (1) What benefits can the employer afford? (2) What benefits will best attract and retain your workforce? And (3) What benefit vendors provide a quality and consistent product today? By balancing these needs and answering these questions you should be able to find a plan that works for your company. It is also important to listen to your people and find out what they really want and to choose a plan that is in harmony with your company culture and bottom-line.
The full text can be found HERE if anyone is interested in reading further.
Hi Mike,
ReplyDeleteI think it is very important to listen to what employees want. Even though they should not make the final call on exactly what should be offered it is important for them to have some type of input. I think a middle of the line approach is important for companies to take. Finding out what employees are looking for and figuring out the costs really in my opinion can do no harm. It is too much money, the company can reduce what they want to offer or go in a different direction-trying to accomodate the employee as best they can but also within their budgets.