ADMS 2600 Chapter Notes - Chapter 11: Metalworking, Clinical Psychology, Elderly Care
6 Dec 2013
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Requirements for an effective benefits program selecting benefits that target important employee needs while promoting strategic organizational objectives. Strategic benefits planning employee benefits program should be based on specific objectives compatible with the organization"s strategy and the strategic compensation plan, including its philosophy and policies. Employees select benefits to match their individual needs. Benefit selections adapt to a constantly changing (diversified) workforce. Employees gain greater understanding of the benefits offered to them and the costs incurred. Employers maximize the psychological value of their benefits program by paying only for the highly desired benefits. Employers limit benefit costs by allowing employees to buy benefits only up to a maximum (defined) amount. Employers gain competitive advantage in the recruiting and retention of employees. Poor employee benefits selection results in unwanted financial costs. There are certain added costs to establishing and maintaining the flexible plan. Employees may choose benefits of high use to them that might increase employer premium costs.
