Benefits Plan for Acme Incorporated - Paper Example

Paper Type:  Essay
Pages:  4
Wordcount:  911 Words
Date:  2021-05-27
Categories: 

A benefits plan comprises of non-wage reward given to the employees on top of their regular wages and salaries. A benefits plan motivates employees and helps to attract new employees to the organization. A benefits plan contributes to promoting employees engagement to a given organization because it creates a feeling that the organization cares for the welfare of all the employees (Regis, 2008). If the morale of employees is boosted, the employees give their very best to the organization resulting in high performance in all sections of the organization. On the contrary, if the workers are not motivated, they do not give their very best to the organization, and this lowers the overall performance of the organization. Internal and external factors play a key role in determining the benefits plan (Salvendy, 2012). Information from both the internal and external environment guides the human resource department in developing a benefits plan that is beneficial to both the employer and the employees. When developing a benefits plan, the employer must always ensure that the benefits program is affordable (Regis, 2008). Besides, the benefits plan must be attractive to the employees to facilitate the establishment of long term and short term relationships.

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The first important information that must be considered in the process of developing a benefits plan is budget allocation by Acme Incorporated. The company must set aside sufficient funds that can facilitate ideal benefits program. The budget allocation determines the amounts to be set aside for each of the advantages scheme for the employees (Goldfein, Lopes & United States 2010). This means that the budget allocation guides in determining the amount of financial benefits that the employees can enjoy. Benefits given to employees are not always in financial terms, but the budget must have the capacity to support the non-financial benefits. The second important information that must be considered in the process of drafting the benefits plan for Acme Incorporated is the legal compliance (Goldfein, Lopes & United States 2010). There are different laws regarding employee's benefits schemes, and thus it is important to ensure that the laws observe. Failure to comply with the law can lead to legal confrontations which can be costly to the organizations. The third important information that must be considered in developing the benefits plan is the prevailing economic conditions (Goldfein, Lopes & United States 2010). The economic situation influences the performance of all companies within a given economy. Acme Incorporated should come up with a benefits plan that is a reflection of the current economic conditions. Benefits plan that resonates with the economic situation ensures that both the employer and the employee gain from the benefits scheme.

When developing a benefits plan, there are some information's not considered in the process. Some of the information is not considered in the course of developing a benefits plan because it is not important and does not any influence on the advantages plan (Salvendy, 2012). The first information that is not important when developing a benefits scheme regards to what the competitors are offering to their employees (Regis, 2008). Despite the fact that Acme Incorporated should keep at par with its competitors, is not advisable to provide similar benefits schemes as its competitors. Offering a benefits plan does not always translate to employees satisfaction. There are other ways of creating a satisfying environment for the employees. Some organizations may offer fantastic benefits plan, but they still experience high employee's turnover as result of the poor working environment (Salvendy, 2012). Acme Incorporated should just provide benefits that it can afford but ensure that it creates a comfortable work environment for all the employees. The second information that is not necessary when developing a benefits plan is assessments on the advantages likely to be derived from the benefits scheme. A company should not invest in carrying out an assessment to establish the apparent advantages of a benefits plan. The paybacks from a benefits plan are seen after some time and thus no need to perform the evaluation.

As pointed earlier offering employees, excellent benefits program does not always translate to job satisfaction. Acme Incorporated should not focus on solely offering financial benefits to the employees. Employees satisfaction and commitment to the organization can be achieved by creating a conducive working environment and ensuring that the employees are made to feel that they are part and parcel of the organization (Regis, 2008). The biggest problem of establishing a benefits plan is that it does not always translate to getting the very best from the employees. The organization can be committed to offering the employees outstanding benefits, but the workers lack commitment to their work due to other factors (Salvendy, 2012). Most of the advantages plans involve some financial investment and thus the company can increase its expenditure and yet fail to derive any benefits from the human personnel (Goldfein, Lopes & United States 2010). A benefits plan should be in line with the needs of the organization and those of the employees, and none should be prioritized at the expense of the other. In a nutshell, benefits plans are meant to motivate the employees but they plans should not make a given organization incur a lot of expenses that can have adverse effects on its performance.

References

Goldfein, I., Lopes, M., & United States. (2010). Managing employee benefits. Washington, D.C.?: U.S. Small Business Administration, Office of Business Development.

Regis, R. (2008). Strategic human resource management and development. New Delhi: Excel Books.

Salvendy, G. (2012). Handbook of human factors and ergonomics. Hoboken: John Wiley & Sons.

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Benefits Plan for Acme Incorporated - Paper Example. (2021, May 27). Retrieved from https://midtermguru.com/essays/benefits-plan-for-acme-incorporated-paper-example

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