Innovations in employee benefits can improve the overall competitive compensation strategy because of what may be offered to employees through each benefit. In order for companies to be competitive in the job market, the benefits must be appealing to attract, retain and motivate employees to build long term success. In today’s economy employee benefits are becoming as important as pay may be for most employees. A company who offers good pay along with good benefits is what most job seekers and current employees are looking for to etermine if that particular company is one worth working for until retirement.
Companies must find innovative ways to engage employees while encouraging and improving their skills and performance. For example, more companies are now offering and making it the employees responsibility to save or invest in retirement through 401k plans. A 401k plan is a retirement plan employers provide where employees can deduct a portion of their salary, pre-tax and invest that deduction in a portfolio of investment options.
I believe this really gives employers an advantage n the market because people usually manage their bills by the “take home pay” and if you choose to invest in the 401 k, the money will come out your pay check before taxes which makes it easier to budget and invest at the same time. The 401k is just one benefit an employer may offer to make personal and work life manageable. It offers employees more money in the future and the employer gets the commitment of dedicated employees in return. There are many other benefits from offering affordable rates with the rising cost of healthcare to flexible spending accounts.
Benefits that employees can pay a small amount and get coverage or discounts is a good way to improve the overall competitive compensation strategy as employees will get more with the money earned. Explain how innovative benefits could be tied to specific jobs. Over the last few years, there has been a continuous battle to offer attractive employee benefits in keeping up with employee demands. Employee benefits can increase employee satisfaction with the company. A company may provide additional benefits to employees with pecific jobs. For example, if working for a company where lots of travel is required, the company may offer a good wireless service plan in which calls can be made for personal or business use while out of town on business.
Employees who are required to do extensive travel will probably need more assistance than an employee whose job requires them to work out of the office or another facility near where the employee resides. Another innovative benefit for this specific job can be to offer to pay a certain percentage for childcare if the employee has children ho attend day care or after school programs. This benefit can be very attractive as the cost for childcare continues to increase. In most cases, tailored benefits can make work life less stressful and a lot easier for employees whose personal life may keep them very busy. Many experts argue that tailored benefits can be worth as much to an employee as a pay raise. Different benefits appeal to different people. In order to understand people needs, employees must take in consideration age, gender, marital status, family size, health and level of education.
In taking all of these in consideration, the company is able to design attractive benefits packages that will attract, retain and motivate employees. Innovative benefits helps to build value within the organization. If employees feel the company cares about their by well- being by consistently adding or making changes to benefits programs, they will in turn get more out of employees because employees should exceed the expectations of the job to earn pay while getting good benefits.