Question

Describe the differences between strategic benefits plans and benefits practices. Should strategic benefits plans be developed before setting benefits tactics? Explain your answer.

Answer 1

Differences between strategic benefits plans and benefits practices are as follows:

• Strategic benefit plan chalks out strategies for both internal budget and long-term budgetary practices. Thus, it is bidimensional. On the contrary, benefit practices are the outcome of benefit plans. Therefore, it has a single dimension because practices can be for either short-term or long-term. Not both at a time.

• The value of strategic benefit plans can be measured through nonmonetary parameters. On the contrary, benefit practices are measured in both monetary and nonmonetary metrics.

• Strategic benefit plans process and decision-making oriented. For example- training, planning, and decision-making. On the contrary, strategic benefit practices are outcome-oriented. For instance, benefit practices like extra compensations and incentives are performance standards' outcomes according to strategic plans.

Yes, strategic benefits plans should be developed before setting benefits tactics.

Practices cannot be implemented without proper benefit plans. A chain of the benefits planning process is necessarily required before the benefit tactics.