Steps to employee benefit package plans

Written By Steps To Faculty Published July 6th, 2010

If a small company does not have multimillion dollar profit margins, then to compensate an overworked staff a cost effective employee benefit package plan should be formulated and implemented. An employee benefit is also known as benefit in kind, fringe benefits, perquisites or perks. It is defined as non wage compensation provided or given to employees of a company in addition to the wages and salaries they earn. In these financially strained times, employee benefit packages may not always be in the form of cash since cash flow is limited. But other factors should be considered. Take a look.

Step 1 Consider everything

Employee benefits include: housing provided by the employer or house allowance, group insurance (life and health), disability income protection,, retirement benefit, day care, tuition reimbursement, sick leave, social security, funding of education and training, vacation (paid or non – paid) and other specialized benefits, such as company credit card. These should be considered to increase and maintain the economic security of the employees. These benefits should be provided to all employees in the company but under some requirements or conditions to be fulfilled.

Step 2 Promote from within

If an employee is evaluated and appraised and rated as above average, then he or she should get a job promotion when there is a vacancy or to choose on any of the employee benefit packages offered by the company. These benefits should only be provided for those with outstanding or excellent performance.This will encourage others to work very hard to get these employee benefit packages.

Step 3 Be safe

To be cost effective, the company should ensure that the environment where the workers operate is safe. This will reduce the costs that may be incurred for disability income protection, sick leave and group insurance. By basing the employee benefits on the performance means that the employees will be motivated and driven to work hard so as to get the benefits.

Step 4 Think of profits

The company can expand its operations compete favorably with its competitors. The benefits to be given to the employees should also depend on the profits the company makes. The more the profits the company generates, the more the benefits and vice versa. During times of expansion, reward your employees so that during times of contraction, they will still maintain a high standard of work despite the reduction in benefits.

Step 5 Be proactive

If you notice that productivity is lagging, talk with your employees to find out what types of benefits they wish to receive. Some may want flex-time. Offer these added benefits if it is within reason and budget.

Remember, your employees drive your business. Please visit stepsto.com for more great business advice.


Roger Due

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