Employee Benefits

Topics: Employee benefit, Employment compensation, Wage Pages: 6 (2029 words) Published: February 2, 2013
Employee Benefits
Theatric L. Ishmon
Upper Iowa University
Human Resource Management
October 19, 2012

Employee benefits could possibly be one of the most important factors that employees look at when deciding on a place of employment. As employers are not legally required to grant all benefits, some voluntarily grant legally not required benefit as a way of differentiating their organization from their competitors. Because of the many forces that must be weighed and kept in balance for a benefits program to succeed, benefit program should be compatible with the organizations strategic compensation plan. Employee benefits can be important to both organization and employees. It could be assumed that organizations use benefit programs as of way of attracting and retaining talent. Also, it could be possible that benefit plans are important to employees as well for reasons such as balancing work-life or a sense of security.

Employee Benefits
There can be an assumption made that the wage, or salary offered by employers is one of the top factors people look at when they apply or accept a job. But is this true? It could be assumed that some people feel that benefits offered by employers are more important. According to the Bureau of Labor Statistic, “Benefits are nonwage compensation provided to employees. The National Compensation Survey groups benefits into five categories: paid leave (vacations, holidays, sick leave); supplementary pay (premium pay for overtime and work on holidays and weekends, shift differentials, nonproduction bonuses); retirement (defined benefit and defined contribution plans); insurance (life insurance, health benefits, short-term disability, and long-term disability insurance) and legally required benefits (Social Security and Medicare, Federal and State unemployment insurance taxes, and workers’ compensation)” (U.S. Bureau of Labor Statistics Division of Information Services, p. 1). Over the years there has been assumption made that employee benefits such as health benefits are constantly increasing for employees. But if this is the case, it could also be possible that organizations are contributing large amounts to the benefit plans they offer their employees as well. According to Scott Snell and George Bohlander, “Benefits can represent more than 40 percent of the total payroll cost an employer pays, depending upon the types of benefits it offer” (Snell & George, p. 474). As stated earlier some benefits are legally required (Social Security and Medicare, Federal and State unemployment insurance taxes, and workers compensation), whereas other benefits are voluntarily granted by employers. Today most benefits are provided voluntarily by employers, which it could be possible that some organization are spending large amount on the benefits as well. Should these organizations continue to provide benefits that aren’t legally required and only provide legally required benefits to employees? Or could it be that providing employees with benefits that are not legally required are good for other reasons also? Creating a Successful Benefit Program

According to, Snell and Bohlander, “There are many forces that have to be weighed and kept in balance for a benefits program to succeed, which is how to fund the benefits program and sustain it, as well as the tax consequences related to it. The needs of the company’s employees also must be considered because they can differ significantly from firm to firm” (Snell & George, p. 475). Employee involvement could possibly help when creating a benefit program. It could be assume that employees that are satisfied with their benefits are satisfied with their jobs. Because of this it could be possible that involving employees when introducing new benefits could be critical to the success of the new benefit program. Second, it could be assumed that flexible benefits for a diverse workforce are important when creating a successful benefit...
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