Question

Many organizations are concerned about the rising cost of employee benefits and question their value to the organization and employees. In your opinion, what benefits are of greatest value to employees? To the organization? Why?

Answer 1

One of the most important aspects of Human resource management is managing employee benefits. It is an important part of the policy for employee retention and also a mandatory requirement of law which has a cost attached to it for employers. Such as Social Security and Medical care Benefits. Benefits programs may vary in different organizations according to the compensation plan as these are critical components of the total compensation costs which the employer has to bear and thus this investment should have an importance in the process of recruiting and retaining, towards a well-thought-out benefits plan to meets both employee and employer needs and objectives.

The most common employee benefits are:

• Health insurance
• Group insurance
• Retirement benefits
• Paid leaves
• Work location Flexibility.
• Childcare Reimbursement.
• Flexible Schedules.
• Performance related Bonus.

Out of these some are optional benefits and an organization may choose which one to offers from them. The most valued benefits for employees are related to security , flexibility and a work life balance . These benefits make employees feel that their comfort and convenience is valued and loosing that comfort may associate a sense of loss while leaving the organization that will act as a retention factor for them. Benefits such as Health insurance , retirement plans , virtual office ,flexible shifts, child care facilities are most preferred ones. Generally younger workforce value paid leaves and flexible timings while older employees give higher value to retirement income plans and health insurances . These benefits are preferred as they provide opportunity to the employees to do their job along with taking care of their responsibilities in personal life which makes them more comfortable and secured emotionally.

As far as the organizations are concerned they should analyze their workforce demographics to design and determine the needs of various categories of employees since these days organizations competes for best of the talents and skills , these benefits are one of the key differentiating factors between companies for attracting new talent as well as to retain the existing one.