Question

Consider the varieties of internal and external information that companies consider when planning a benefits program. Which piece of of information do you believe is most important to this planning process? Least important? Explain your answers.

Answer 1

For any organization, while planning and designing the benefits program the organization collects the information on the internal resource capability and financial capacity as well as collects the information from the external business environment and the practices which are being followed by a similar organization from the industry it belongs to. The most important information while designing the benefits program is the organizational objectives and their strategic Human resource planning. For example, If the organizational objectives required for a lower attrition rate then the benefits program would be designed in a way that supports the high level of retention and loyalty would be rewarded more in longer-term. But if the company is looking forward to immediate results and can only be possible through a very good talent pool then comapny will have to design the benefits program which attracts talent such as high cash compoent in the benefit program. Therefore the most important aspect is the business objectives and organizational values. Least important are the information as what other organizations in the industry are following when it comes to benefit program. However the importance of competition or industry benchmarking can not be ignored for the benefit program but it must be customized as per business objectives, organization's culture and value system.