Question

In Chapter employee benefit we explored employee benefits. If you were starting a small business of say 250 employees what type of benefits would you have to provide? Which would you offer as supplemental? Explain why you included each benefit.

Answer 1

Seeing it is a small company having 250 employees and members, it means that the firm is also having a limited budget to provide the benefits to the employees. Thus, the compensation package or the benefits I would like to provide to my employees would be:

1. Basic Pay: The first thing which is very important would be the basic pay of the employee which is fixed and would be rewarded to him/her on the monthly basis for the work performed for the company. This is the basic necessity and thus should always be included.

2. Variable Pay of Performance: Apart from basic pay, I would also like to include the concept of variable pay where the employees would be given many opportunities and chances to outperform their coworkers and thus would be rewarded a percentage variable for the extra work or best performance shown in the organisation. This would help to increase the competition level and also the motivation of the employee to perform better.

3. Benefits and Allowances: Many benefits and allowances would also be provided that would include festive bonuses for the employees. Allowances would include the travel allowance, food allowance and security allowance for the employee from the company's side. This helps to attract more employees in the organisation and also gives extra attraction for them to work here.

The supplementary benefits I would like to provide to my employees would be the Medicare and Health Benefits and Insurance, fair and reasonable paid holidays per yearly basis, sick leave, disability benefits and also employement wellfare program to make sure the employees are getting to learn and avail the best from this organisation.