Human Resource Management - Putting Together a Benefits Package

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  • Topic: Flexible spending account, Health savings account, Employee benefit
  • Pages : 10 (3488 words )
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  • Published : February 24, 2013
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Putting Together a Competitive Benefits Package
That Will Attract and Keep Quality Talent
Within An Organization

Abstract
In today’s economy it is vital that society as a whole carefully consider every dollar spent. In both the small and large business environment one of the most important ways to do that is to analyze money spent on a company’s greatest asset – its employees. Although unemployment is still relatively high and many people are willing to work for much less than they would have three or four years ago, the savvy applicant knows the value of employment benefits. When given a choice of the same salary, most applicants will choose the position that offers benefits. In some cases, applicants will choose a position that offers a lower salary as long as benefits are part of the employment package. Be that as it may, it behooves the hiring firm to closely review their benefits package to be sure they are offering the best they can with the dollars available. With a competitive benefits package, a firm is more likely to hire and retain quality talent. In doing so, the firm also positions themselves to find success in their line of business. The question, then, that many business owners face is whether a benefits package is affordable and the best use of funds. For every business, the financial aspects can vary dramatically and the final results can look very different, but it is possible to put together a benefits package for your business.

Putting Together a Competitive Benefits Package
That Will Attract and Keep Quality Talent
Within An Organization
In 2012, the success of an entrepreneur is measured in many ways. Those include the number of new ideas launched, the revenue and profits earned, and the ways in which he or she serves an industry or a community. For many entrepreneurs, one of the most rewarding aspects of running their own business is how they are able to impact others – not only those they are serving in their business but also the impact they make on the lives of their employees. There are tangible rewards such as pay, and intangibles such as mentoring, however, beyond that, the provision of a generous package of employee benefits allows a business owner to profoundly shape a worker's life and future. So much of keeping talent and recruiting the cream of the crop is tied to a generous employee benefits package. The most successful businesses are the ones that work hard at pleasing their employees. Daniel Pink, the Washington D.C.-based author of Drive: The Surprising Truth About What Motivates Us, conducted research on what motivates employees. His studies led him to this conclusion: "The best use of money as a motivator is to pay people enough to take the issue of money off the table." Pink states it's better to pay people a little more than the norm and allow them to focus on their work than to pay them based on performance. "Don't pay people a measly base salary and very high commissions and bonuses in hopes that the fear of not having enough food on their tables will inspire them to do extraordinary things." (“How to Build a Competitive Benefits Package”, 2010) Benefits are important. In order to offer generous benefits, careful financial planning must first be practiced. Most benefits packages come with a hefty price tag and costs can rise exponentially as the company expands. Furthermore, once a benefit is offered, it is difficult to take it away should the economy turn south. That said, if a company is known for offering good benefits, it will generally be easier to recruit talented employees, thus bringing positive side effects with respect to marketing and sales.  What components should be considered in a competitive employee-benefits package, and how does one go about setting it up? It starts with the basics, which are outlined below. Employee Benefits: Health Insurance

Health insurance is by far the largest ticket item in the employee benefits budget....
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