The startup company of sixty-seven employees is to have a benefits plan for the employees. Its types and value depend on the investments plan terms and conditions as agreed upon by the employer and the employees. One of the benefits options in the plan is the health insurance. In this case, there is a contract where the employer, the company, pledges to pay for the employees' and their dependents' medical expenses in the event they fall sick. It is an option included because of the risky nature of the operating and working environment. It is infested with tsetse flies which although brought under control by the government efforts, still pose a threat to the health status of the constituent members from the resistant species of the flies. The benefit is also offered to motivate the employees to continue with their work more assured that all is well even in the seemingly risky environment. Another benefit offered to the employees is the paid vacation where they are taken to a tourist destination at particular periods of the year. It serves to boost their morale that they are valued by the company and the need for them to still exert more effort into their day to day activities, which goes a long way in realizing the prosperity o the company. Retirement plan and personal leave benefits are also offered by the company, which also help integrate more the employees to the heart of the company, making them work for the best interest of the business.
Particularly for the industry, the benefits have their subdivisions regarding their standard nature, the unique ones and the ones who highly attract qualified candidates. The ones considered standard for all the employees regardless of their nature are the health insurance benefits and the personal leave benefits. In this context, the health issue is a matter that can occur to anybody irrespective of the class, race, age, gender, and color. It is thus standardized for all the employees. The benefit that is unique to the company staff is the aid vacation. It is regarded as an optional incentive meant to enlighten the employees further. Retirement benefits attract the highly qualified employees to the company.
The company's competition in the community is the one where businesses deal in the same line of goods. Attention to the same market is thus paramount. The product differentiation strategy is deemed to help in possession of a considerable market share since the customers love new adventures. Such a competition strategy helps in the survival amidst throat cutting competition.
The appropriate cost target as a percentage of the total compensation package for the company is $ 150,000. In this case, the total compensation for the employees is projected to be 30% of the overall costs target. The factoring determines the cost target in of some related elements such as the prevailing economic conditions, the cost of inputs, and the number of compensations expected. The cost target is affected by some trends in both the internal and external business environments such as inflation, the costs of inputs, the number of compensations expected and the rate activity of the company.
The plan will motivate the workforce such that they will want to get retained in the company. It is because they are treated well and regarded as the assets of the business. They will work hard so that they will be seen as active, hence helping in their retention. A review plan that will maintain a competitive benefits package into the future is the increment of the benefits for the individuals as they age down. In this case, they will strive to get retained so that they get more benefits in future. Also, there shall be unique benefits preserved for the older employees only, making them attempt to get retained to reap from it.
For the plan to meet legal requirements, there should be the due following of the law through the consultation of the attorneys so that any dictate of the law is not disregarded in its composition. Also, all the relevant benefits to the employees that act like contracts should have the involvement of both parties signing under the watch of a third party, under the terms of a legally binding agreement dictated in the law. Hence the benefits are legal and legitimate.
Some of the benefits will not show preference to different employees based on ages, color, gender, marital status or even number of dependents because all employees are equal and bias at the workplace should be left at bay. They all contribute equal expertise in their job areas, hence the basis of parity.
The plan can be administered in a small employer environment. However, the challenge is adjusting its properties according to the financial ability of the firm, which might be small, hence a problem. Also, the employees might be inexperienced in their lines of duties. The firm can leverage on the advantages through the adjustment of the plan to fit its present circumstances, enhancing its functionality. Also, the disadvantages can get managed by training the employees to boost their efficiency and knowledge of the working mechanism of the benefits and compensation schemes.
Cite this page
Designing Benefit Plans - HRM Essay Example. (2022, Jun 24). Retrieved from https://speedypaper.com/essays/designing-benefit-plans
If you are the original author of this essay and no longer wish to have it published on the SpeedyPaper website, please click below to request its removal:
- Business Essay Sample: SWOT Analysis of the Coffee Shoppe
- Anti-Oppression Approaches
- Free Essay. Christian Worldview and Ethics
- Gender Roles Research Essay Sample
- Am I Dreaming - Personal Experience Essay Sample
- Free Essay: Cultural Practice of Self-presentation
- Interview with a Youth Worker. Free Essay for You.