Benefits Package

Benefits Package

The problem scenario for the Bouvard Belts and Buckles Company has revealed that the organization’s revenues are highly low as attributed to poor employing practices, excess workers, an outdated payment system, fictional training programs and an expensive benefits package. Most individuals equate a benefits package to insurance covers only but this is an erroneous view. Insurance is one of the many covers offered to employees towards the creation of a high job security and a competitive edge achieved through workers loyalty against business rivals. The Bouvard Belts and Buckles Company needs to reduce its benefit overheads for the continuity of the organization. The standard package would therefore serve as the best option for the organization (Rosenbloom, 2005).

The health benefits will encompass a health insurance that will be restricted to the either the Health Maintenance Organization or the Preferred Provider Organization. The two insurance companies are highly affordable in their charges and although a bit limited in terms of flexibility, the workers will take an active role in choosing which package best fits their preferences. This strategy will enhance the employees’ sense of belonging as they are involved in the decision process and the restraint will ensure that the company acquires a sustainable package in terms of affordability. A discriminative policy will be used in terms of health payments with old workers being wholly covered (100%) in terms of costs by the company but recent employees will only be accorded 80% of their health cover by the organization with the 20% required to be funded by the worker (Mazin, 2010). This will discourage labor mobility by enhancing company loyalty geared towards increased employee retention under the motivation for the full package. With most companies applying the same criteria, job movement will be depressed to a level that will be profitable to the organization in terms of reducing the rate at which hiring costs are incurred.

Note that, the health package will also include the dental, vision and disability coverage. With the requirement for system improvements, the information will be automated for easy monitoring and will require an individual to have spent at least sixty days as a company employee before the effection of the same. Additionally, a 401(k) savings package will be offered to the employees that will involve the monthly contribution that offered by the company to encourage workers into savings tendencies. This component will also follow a discriminatory approach with the new workers being offered an annual amount of $6,000 while older employees will be accorded $1,000 within the same duration (Mazin, 2010). This practice will act as a motivational tool where the new individuals will strive to stay within the company for a minimal period that will ensure a promotion to the next remuneration level. The guarantee for this package is accorded in the practice that various business analysts have realized that many organizations tend to overlook the 401(k) component. The workers will opt to retain the present employer as shifting does not guarantee the same package in other organizations. Moreover, the sum offered may be less than the current status.

Vacations will be employed as a motivational package to discourage worker absence and the productivity levels (Rosenbloom, 2005). The vacations will be paid by the organization in annual terms. The initial 5 years spent in the organization will be offered 10 days paid holidays, with an increment in the period length with the older an employee gets. Between 5 and 10 years, employees will be accorded 15 days while individuals over the 10-year mark will have 20 days. These benefits will be withheld by the company until a 90-day period elapses before implementation. The workers holidays will be placed on a rotational basis so that each individual enjoys various seasons and periods. The inclusion of the limiting period in the vacation component will ensure higher retention as individuals strive to remain with the company for the benefit realization.

 

 

 

 

 

References

Mazin, R. (2010). The Employee Benefits Answer Book: An Indispensable Guide for Managers and Business Owners. Hoboken, NJ: John Wiley and Sons.

Rosenbloom, J. S. (2005). The handbook of employee benefits: design, funding, and administration. New York, NY: McGraw-Hill Professional.