Preview

Employee Benefits

Satisfactory Essays
Open Document
Open Document
303 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Employee Benefits
Employee Benefits Increasingly, employees are being allowed to choose benefit packages from a menu of items. For instance, workers may be given a package of benefits that includes basic and optional items. Basics might include modest medical coverage, life insurance equal to a year's salary, vacation time based on length of service, and some retirement pay. But then employees can use credits to choose among such additional benefits as full medical coverage, dental and eye care, more vacation time, additional disability income, and higher company payments to the retirement fund. Using the theory of consumer behavior, how do you think flexible benefit packages would affect an employee's preference between higher wages and more benefits? Respond to at least two of your fellow students’ postings.

Flexible benefit packages affect an employee's preference between higher wages and more benefits, because flexible benefit yields more satisfaction than higher wage. Consumers prefer to have more of a good rather than less, and the benefits package offers more utility than just higher pay.
For example, a package of benefits that an employee would choose depends on his/ her personal situation. A single, young, healthy person with no dependents would be satisfied with a higher salary and a basic benefit package. But, an employee with a family and a medical history, would choose more benefits than a higher salary, so that his family will be taken care of, and ensure that should he suffer injury while at work, his disability income would cover the costs incurred while being unemployed and more vacation time would mean spending time with family.
For an employee who plans to retire soon a flexible benefit package which include higher company payments to the retirement fund(more benefits), would be preferable than having to seek higher wages- to cover retirement

You May Also Find These Documents Helpful

  • Good Essays

    The objective of this project is to review the existing benefit choices in time for the next enrolment process for Flexible Benefit and to determine whether the choices are still meeting the personal needs of the employees.…

    • 1405 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Milkovich, G., & Newman, J. (2004). Compensation 8e: The pay model. Retrieved January 23, 2008, from Univerity of Phoenix, eBook Collection…

    • 3901 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    Benefit Packages. Today’s globally competitive business environment has caused many U.S. businesses to reduce the value of their employee benefit packages. Examine how an organization can maintain its costly benefit structure while remaining competitive against coun...…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Rwt1 Research Paper

    • 2313 Words
    • 10 Pages

    The last form of compensation we can consider for our employees as a company is longevity pay. This is compensation based on the employee's seniority, length of service, or tenure. This can be in the form of annual bonuses on their employment anniversary date, or monthly amounts added to their checks. This provides the employees with motivation to continuing their career and employment with the company.…

    • 2313 Words
    • 10 Pages
    Best Essays
  • Better Essays

    In today’s work world it is makeup of diverse individuals which strives towards a successful outcome. However, working for a small or large company, individuals are looking forward to meeting the needs of the organization. In order to meet the needs of the organization, employees are to be in rivalry with hourly and salary wages. In additions to the hourly and salary wages, individuals are often attracted by organization benefits which usually consist of employee searching for discounts in 401k retirement plans and cheaper life insurance. The attractions to employees are health care insurance benefits, which usually includes…

    • 968 Words
    • 4 Pages
    Better Essays
  • Good Essays

    1. The importance of employee benefits as a strategic component of fulfilling the goals of human resource management is to find, attract, and retain quality employees (DeCenzo & Robbins, 2009). Treating employees with respect, offering bonuses, rewards, on site lunches, etc. helps keep employees happy, and loyal. The main purpose for employee benefits is to find qualified candidates to fill positions, and want to stay within the company. Without offering employee benefits, employees wouldn’t remain loyal, and productivity would be low. Benefits are an employees’ incentive to want to do their job to the best that they possibly can, as well as stay loyal to the company. In today’s…

    • 798 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    week 3 paper

    • 283 Words
    • 1 Page

    This section is for deferred compensation arrangements. It provides guidance for topics regarding deferred compensation in relation to employment contracts. Pensions and other retirement benefits are not included here.…

    • 283 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Family Impact

    • 249 Words
    • 1 Page

    What impact do benefit offerings have on marketplace competitiveness and the ability to attract and keep quality employees?…

    • 249 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    There are five considerations to take into account when designing a benefit’s program they are as follows: 1) are the type and level of our benefits coverage consistent with our long-term strategic business plans?, 2) given the characteristics of our workforce, are we meeting the needs of our employees?, 3) what legal requirements must we satisfy in the benefits we offer?, 4)are our benefits competitive in cost, structure, and value to employees and their dependents?, and 5) is our benefits package consistent with the key objectives of our total compensation strategy, namely, adequacy, equity, cost control, and balance? Another important factor is since there is a lot of long term employees that came over from EnvroTech means we have a diverse workforce and to some benefits may be more important to them such a pension plans rather than direct pay.…

    • 889 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Employee Compensation

    • 307 Words
    • 2 Pages

    A great sales team and the right compensation plan to keep sales people motivated is critical to helping business grow and prosper (Daniel, 2008). InterClean will create a new compensation plan and the goal is to reward sales success while motivating increased sales performance and providing a competitive, yet affordable reward levels. Rewards bridge the gap between organizational objectives and individual expectations and aspirations. To be effective, the new reward system will provide (1) a sufficient level of rewards to fulfill basic needs, (2) equity with external labour market, (3) equity within the organization, and (4) treatment of each member of the organization in terms of his or her individual needs (Casio, 2005). The compensation plan will be tied to the company`s strategic mission which means that a combination of merit system (designed to tie pay increases to each employee`s level of performance) and incentive system (designed to provide additional rewards to top performers) will be used. The broad objective of the design of this compensation strategy (i.e., financial and non-financial compensation) is to integrate salary and benefits into a package that will encourage the achievement of the organization`s objective (Casio, 2005). The new rewards package will consist of two components:…

    • 307 Words
    • 2 Pages
    Good Essays
  • Best Essays

    UPS Human Resources

    • 3574 Words
    • 1 Page

    December 4, 2013 Table of Contents Introduction............................................................................. 3-4 Literature Review Aspect................................................ 5-8 Employee Benefits.................................................................................. 5 Definition of Benefits.................................................................................. 5-6 Factors that affect Employee Benefits..................................................................... 6-7 Pros and Cons Benefits............................................................................ 7-8 Practical Aspect........................................................................................... 9-12 Brief background of UPS.............................................................................. 9 Employee Benefits in UPS................................................................................................. 10-11 Selection process of Employee Benefits............................................................................ 11-12 Conclusions and Recommendations.................................... 13-14 Conclusions......................................................................................................... 13 Recommendations........................................................................... 14…

    • 3574 Words
    • 1 Page
    Best Essays
  • Powerful Essays

    Conduct a market evaluation by researching what companies in the relevant market are providing to employees from a total compensation perspective.…

    • 1143 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    The legally required employee benefits constitute nearly a quarter of the benefits package that employers provide. These benefits include employer contributions to Social Security, unemployment insurance, and workers' compensation insurance. Altogether such benefits represent about twenty-one and half percent of payroll costs.…

    • 6818 Words
    • 28 Pages
    Good Essays
  • Good Essays

    Human Resource Management

    • 594 Words
    • 2 Pages

    3. Ch 13, page 591, question 4: What are the potential advantages of flexible benefits and flexible spending accounts? Are there any potential drawbacks?…

    • 594 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Variable Pay

    • 3778 Words
    • 16 Pages

    The companies which try to implement the variable pay system are increasing. More and more American employees who in the past are used to receive fixed pay with annual raises now work under pay systems with uncertain elements. (William M. Mercer Inc., 1999). Kristine and Mark 's study (2002) showed that even though the predicted values of the variable pay plan were lower than the offered fixed pay, generally most of the employees would choose the variable pay as long as it was linked to individual performance. Like Paul (2007) said in his article, the employees who perform better want to know their productivity will be appropriately rewarded and the variable pay system can satisfy their needs. On the other hand, to implement the variable pay plan has some obstacles as well. The most mentioned problem in published literature I have reviewed is the lack of a sound performance measure of variable pay plan. Besides, the cost of the variable pay system is also a critical issue. Thomas (2003) proposed that the variable pay plan can transfer more compensation cost from fixed to variable which means that the company can have more control over the cost. He also mentioned that it is better for the company to emphasize employees '…

    • 3778 Words
    • 16 Pages
    Powerful Essays