form of flexible work time arrangements, wellness programs and employee assistance programs since these are currently leading edge of innovation in benefits practice.
Employee benefits are playing a progressively fundamental role in the underlying lives of the employees and their corresponding families and possess important financial and administrative effect on the business’ prospect (Armstrong, 2007). Numerous companies function within an environment where an educated workforce anticipates a comprehensive benefits program. Therefore, absence of such program or insufficient of the program normally results to serious hindrance company’s capability in regard to attraction and retention of personnel. Managers ought to be aware of the fundamental issues and be ready to undertake informed decisions when undertaking selection process of the employee benefits.
Designing of the appropriate benefit plan for the employees is always an intimidation task. There exist numerous issues that must be taken into consideration when designing appropriate means of managing benefits of employees (Armstrong, 2007). Such issues entail tax and corresponding legal aspects, funding and selection of the right vendors and administrators. For numerous managers, a benefit plan is an integral section of the underlying total compensation since employers either pay the whole cost of a benefit strategy or possessing employees to contribute small portion of the underlying premium costs for their underlying coverage. In some cases charitable coverage is normally provided in which the employees pay the whole costs for the group benefits.
Offering of competitive pay is one of the means that an organization can attract and maintain the highest level of employees in regard to offering employee benefits. An organization manager requires maintaining proper balance amidst turning a profit and payment of the underlying employee benefits (Armstrong, 2007). Business managers ought to exercise vigilance