The compensation and benefits package is a small sub-field of human resources, focused primarily on employer-employee compensation and benefits policy-making; hence, the compensation and benefits package does not refer to any cash incentives. In fact, compensation and benefits package is very rarely mentioned in any business book or management publications. Instead, most reviews and surveys of business performance emphasize the quality of the leadership and supervision or the performance of the managers. While individual compensation and benefits are important, there are many intangible benefits such as recognition, social work, and development, which are not easily measured.
There are three categories of employee benefits: total compensation, gross salary, and bonus. These are the three areas that are usually described by an employee’s gross salary. But sometimes, employers specify gross salary only to certain positions or groups within a company. The same thing goes for bonuses and perks. These are often called hidden bonuses.
The compensation and benefits package provides an opportunity for employers to reward their employees for their efforts, talents, and skills. However, some companies fail to realize that a well-compensated employee can also be a productive one. It is because the package also includes an understanding and acceptance of the benefits that come with being an employee. When employees accept the benefits offered to them, they become much happier. More satisfied with their jobs and position.
Employment insurance and payroll tax benefits are two of the most commonly provided by companies when they offer benefits packages. Aside from a well-compensated salary, employers should also consider providing a healthy and balanced life for their employees. In fact, the employee’s welfare is an important part of their benefits package. This means that aside from a decent salary and job benefits, an employee should also be provided with proper health and educational assistance.
Employers can actually include dental benefits in their benefits package. Employees working in the medical industry can actually have discounted dental plans provided to them. These dental benefits are very important, especially if they have children. Most employees may not be able to afford the high cost of dental care. The employer will be the one who will shoulder the cost, however; there are some companies that offer affordable dental care. In exchange for a certain percentage of the employee’s salary, they will provide a certain percentage of their total pay as a complement to their benefits package.
Companies may also ask the employee for a job offer. This is a way for the employer to determine if the candidate has the ability to contribute to the business’s profits. This is also a great method of eliminating employees who will be wasting the company’s time and effort in training and hiring them. If an employee’s job offer contains a comprehensive benefits package, it will be very easy for the employee to secure a job offer.
After the benefits selection process is complete, the company will conduct a needs assessment. This assessment is done to determine the needs of the employees and what kind of help they need from the company. The assessment also tells the employer if they should offer the employees incentives. Some of these incentives include:
Once the needs assessment is complete, the employer may decide to change their benefits plan. Changes can be made based on the needs assessment, salary budget, and the needs of the employees. The employer may decide to increase their benefits budget. If the company has an excellent benefits program, the benefits budget will be used to entice new employees. If the company does not offer any great benefits, the employer may choose to reduce the number of benefits offered.