Discuss the role of benefits in compensation. Review the primary reasons an organization provides benefits to its employees; predict future trends in relation to employee benefits, including national healthcare; identify factors that should be considered when creating a benefits plan.
Role of Benefits in Compensation
Currently, the demand for benefits in compensation legally and from employees' side is increasing continuously as benefits in the compensation reduce the cost for employees. For example, cost of health insurance for an employee will be higher if he/she takes it individually as compared to insurance in group within the organization (Fisher, Schoenfeldt & Shaw, 2004). It reduces the cost of living for employees and provides them more satisfaction, social security and safety. The current fluctuations in the economy also threaten the employees and benefits provide protections to employees from these fluctuations that increase the role of benefits in compensation (Sims, 2002).
Reasons to Provide Benefits
The primary reason to provide benefits to employees are to attract the ...
The solution discusses the role of benefits in compensation.