Please note! This essay has been submitted by a student.
In order for a business to accomplish its set goals, it should create an effective employee program. Managing the employee benefits is a crucial also costly undertaking to the business. Most businesses are required by the law to provide the basic employee benefits, for example, staff compensation insurance, social security funds, and unemployment insurance. However, other benefits are voluntary and are determined by the business. The business should have a well-thought-out employee benefits program since the benefits are important in recruiting and retaining the workers.
The first element to consider is to identify the business budget and objectives of the benefits program. This will offer the general guideline in instituting and formulating the benefits program. In general, this process does not lead to a list of particular benefits provided by the business, but it rather gives a summary of the business objectives of offering the benefits that indicate for the business and the employee’s needs. The objectives of the benefits are not constant but vary with time. Therefore, the business should evaluate and revise the benefits program to reflect the present employee needs and the strategy of the business.
The business should also assess the employee needs. This will ensure that the best benefits are selected based on the needs and the wants of the employees. The valuation should include the business perception of the worker’s benefits needs, the competitors’ benefits program, and the laws and regulations of the land. In cases where a benefits program currently exists, the business may conduct a review of the utilization of each program to set the actual works use. The business should also analyze the current employee demographics to help in the determination of the needs of various categories of the employees.
Another element which will ensure that the benefits program is successful for the employees is communicating the benefits program to the employees. The strategy of communication is a crucial element to the management and planning of the benefits. The workers’ understanding of the benefits is important to the recruitment of the employees. If the input of the employees is used is establishing of a benefits program, the business should communicate the program to the employees and inform them how their input influenced the designing of the benefits program.
Developing a periodic assessment to establish the effectiveness of the benefits will also ensure that the benefits program is successful. The business should evaluate the benefits program periodically to determine if the program is meeting both the employee needs and the business objectives. The changes in the business climate, the economy, and the legal environment should be considered as this creates dynamic that impacts the benefits program.
The employee benefits program improves the business productivity in that it provides increased flexibility in the employee benefits. For that reason, the organization will recruit and retain the most qualified employees. The employees are also more productive when they are assured of security and safety both for themselves and their families. The benefits program is also a means of managing the high risks coverage at a low cost thus easing the organization’s financial burden.