Question

Discussion Forum - Benefits

In the Human Resources field, as a means of demonstrating value to employees, companies, both small and large engage in offering employee benefits in addition to compensation.

In this interactivity, you are the HR consultant to a small business with about 40 employees.

• The owner has asked you to prepare a listing of the top three mandatory benefits the employer must provide, and a strategy for figuring out what non-mandatory benefits the employer should also offer, and a merit-based incentive plan for the small business for the upcoming fiscal year.

Post your list to the discussion forum and the rationale for your selection.  

Answer 1

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Top three mandatory benefits the employer must provide to its employees:

1. Workers' compensation: These are the basic requirements for the employees for the work done by them. Their hard work must be optimally compensated by basic salaries and wages they would be getting on a regular time interval. Wages and salaries are decided on the basis of the level of work they are performing, and their skills and level of performance.

2. Paid leaves: An employer must provide paid leave to its employees to satisfy employees by taking care of them and to increase their productivity.

3. Health insurance: The health insurance is provided to the employee at a cost lesser than if purchased as an individual. Providing health insurance to the employees makes them feel that the company thinks and cares about his family, which leads to an increase in his productivity.

Rationale:

According to my, workmen compensation is compulsory for employees to promote their hard work, paid leaves and health insurance is important to provide a sense of belongingness and satisfaction to the employees regarding the organization.

Strategy to figure out what nonmandatory benefits the employer should also offer:

The employer should assess the employee's requirement and their background to gather information regarding what would help to satisfy and motivate them. Care should also be taken about the business budget. The strategy should be formulated by involving employees and then its impacts should be measured and compared.

A merit-based incentive plan for the small business for the upcoming financial year:

The standard level of performance would be formulated by calculating the average performance of 40 employees working in the business, and then, employees who are working more than average should be provided more benefits than an average employee by monitoring their productivity from the current year. We can also conduct examinations or projects for employees on the basis of which employees would be promoted.