12.7. Employee Benefits Strategy

Scope

Employee benefits are designed and viewed as management of high-risk insurance at a low cost. They reduce the financial load on the business. It has been demonstrated that employee perks improve efficiency. The rationale is that people perform better when they have a certain level of protection for themselves and their families.

Key stakeholders

Customers, employees, government, investors, local communities, and suppliers can be the key stakeholders. Employees as stakeholders can help the business to earn and boost more profit. It can also increase innovation and creativity among the workforce.

Business case

Savings and benefit structures designed to replace income lost during retirement and incapacity, benefits for dependents after a breadwinner’s passing, and resources to pay for medical care all contribute to financial security. Resources are derived from a combination of individual and family labour, employee benefits offered by employers, and government initiatives.

Employee benefits can motivate employees to work hard and boost the business’s profit. A business which has more attractive employee benefits it can attract highly qualified employees easily.

Project Description

The strategic project relates to employee benefits. It is accomplished by supporting the cost of the employee’s share of contributions by the employer to the pension plan, benefits plan, and employee health. Furthermore, the aim can be achieved by improving the quality of life and increasing the self-reliance of every employee and strengthening the institution by enabling the recruitment and retention of professionals. The intended outcome of the strategic project is employees will feel motivated, which will improve their work performance and improve the relationship between employees and employers.

Resources

A strategic plan is needed, followed by the organization’s implementation of the plan. It is important to have a clear idea of the organization’s objectives. During the project, a budget is required.

Deliverables

One deliverable of the project is to provide satisfaction to the employee with their work and workplace by giving them benefits. Another deliverable of the project is the initial design of the strategic plan and the report of the investment. Another deliverable will be a report which will generate an evaluation of the plan.

Action

1. Align the benefits strategy with the long-term business strategy
2. Do research related to mandatory benefits given to employees and extra benefits other companies offer employees
3. Set goals for the benefit program
4. Get feedback from employees on what benefits meet their needs and preferences
5. Develop a strategic plan and produce a report of estimated expenses of benefits
6. Meet with the finance department for a budget; and HR about existing policies, design new policies if necessary
7. Be flexible. People are diverse and value different things. Design a basic plan, and allow employees to match the rest of the benefits to their needs
8. Introduce the new benefits to employees through clear and transparent communication
9. Be prepared for questions about the benefits, provide support
10. Track what benefits the company uses most, analyze information
11. Receive feedback from employees in a report on the success of the plan
12. Compare with expected results.

Class of 2022 Contributions: Shaily Joshi, Pooja Solanki