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The Role of Great Employee Benefits

Oct 16, 2007
As a business management consultant I often suggest to my clients that they make their benefits packages as appealing as possible. In an age where insurance is expensive and financial planning is a hot topic among the many, the benefits packages companies offer are one of the top reasons that a candidate will accept or decline a position.

Anymore, the employees expect compensation to include more than a decent salary. Health care, dental care, adequate retirement plans, and many more options are becoming more and more a requirement for individuals rather than a benefit.

Choosing the right benefits package that your company will offer will take some careful research as well some invested time. The outcome though, could end up saving the company a great deal of money and invite exceptional employees.

As with many things, benefits will cost the company money. How much money the company is willing to spend or is able to spend will depend upon the money that is available for the benefits budget. This is step one in the selection of the benefits package. Check your fund availability for additional benefits.

After reviewing the company's financial situation, the company is able to determine if there is money available for the additional compensation packages (besides salaries). The company can then begin reviewing the different options for the benefits that the business and management leaders decide are appropriate.

Beginning with insurance packages, many options are available for companies to choose. Depending on the type of business and the number of employees, that a company has will determine the group rate that the company pays for the insurance. For some companies, this is a beneficial option where income in other areas offsets this expense.

Insurance benefits can include health insurance, dental insurance, life insurance, accidental death insurance, and worker's compensation insurance, to name a few. There are several different companies that offer different products, some of which may pertain to your company better than others.

The next benefit for your business and management leaders to consider is that of the retirement plan. This may be in the shape of a 401k plan or whatever type of long-term investment opportunity that you choose for your employees. Again, many companies offer many different products and extensive research is necessary to find the plan that best fits your company for benefits compensation.

In addition, a benefit available that is becoming more popular, allows employees to set aside money or contribute money pretax to a fund throughout the course of the year that covers medical expenses that may arise. The downside to this benefit is that the employee has to use the money within the fiscal year, as it does not rollover to the next year's allowance for medical expenses.

Business and management leaders may also review the benefits packages of other companies to shorten the amount of research that needs to occur for the construction of a benefits package. Though tedious, business management consulting firms strongly recommend the consideration of compensation packages that include additional benefits for the employees.
About the Author
Eric Reed is a Principal consultant with Integrated Global Business Solutions. Eric has implemented many customized consulting strategies for clients ranging from small to mid-sized businesses to Fortune 500 companies. Learn more about Integrated Global Business Solutions at http://www.igbsinc.com.
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