Benefit programs on employees and organizations
In retail one offers employees’ benefits like medical, dental, 401 k plans, among other benefits that help the employee. Employee benefits help employees to prepare for unexpected issues such as hospitalization and also will help employees save for retirement. Benefit programs are given to employees as part of the pay package; however, many of the benefits do not go into effect until the employee finishes his or her first year with the organization or reaches a set amount of hours (Noe et al, 2007).
Larger organizations or corporations will offer more benefits and compensation plans so that employee retention can remain high and turnover low. Compensation plans can work in a positive manner; however, if not set properly can fail and cause moral issues. The law requires that employees be given certain benefits. The employer is responsible for providing the employee with Social Security taxes, Unemployment insurance, Workers compensation insurance, and Family and medical leave; however, there are privately owned organizations that are too small and do not have to provide such benefits. Usually corporations and large organizations with hundreds of employees are required by law to provide the above benefits. Penalties can be imposed on organizations that do not abide by the laws (Noe et al, 2007).
Communicating with employees is important so that he or she understands what the organization has to offer in benefits and compensation. Organizations will usually have a list of the benefits on the employee handbook. Employers will cover with employee’s changes to benefits at meetings that are held yearly. Organizations analyze benefit programs to ensure that they are cost effective without hurting the organizations bottom line.