Employee benefits refer to the different genres of non-wage compensation that are given to employees plus their usual basic salaries. In small businesses, such as small rental company, there are employee's benefits designated for people, examples include, health insurance, ancillary insurance, retirement benefits, and personal benefits. Health insurance is an employer-sponsored plan regarding employees' health which may consist of, emergency care, hospitalization, rehabilitative services or even preventive services and chronic disease management. Ancillary insurance offered by employees as a way to provide added health protection like life insurance and even disability policies which are crucial regarding having a well-rounded health benefits package. It helps employees make ends meet if they are compelled to miss work caused by any form of disability. Life insurance plans the payments for death that are of a predetermined schedule.
Retirement benefits ensure employees have a proper financial plan for the future especially by the time they grow old. The employer determines the percent of income for contribution. There are different plans for the retirement benefits like the SIMPLE 401(k) which is recommendable for small businesses. SIMPLE 401(k) won't require employees to chip in a lump sum amount as their employers help them chose low-fee alternatives for their investments. Personal benefits, on the other hand, may include a wide array of services: maternity/paternity and adoption leave, education and training reimbursement. These benefits are offered by employees to ensure that the lives of their employees proceed regarding cash even when they are facing personal problems or situations out of work.
Delegate your assignment to our experts and they will do the rest.
Living Better LCC is a small business enterprise. It is referred to be small as its management resides with one person (Bridge & O’Neill, 2012). Jeff, who is the manager oversees management, production, and finance. The Management of Living Better LCC will ensure that its employees enjoy certain benefits. As mentioned earlier these benefits are crucial for the survival of the business venture as employees will work hard for every penny they earn. In order to ensure these benefits are a source of motivation to increase productivity they will come in a suitable well-rounded package. The benefits that Living Better LCC will offer its employees include health insurance, personal benefits, commuter benefits, and ancillary insurance. Plans of incorporating the retirement benefits are en route for the few employees that will work with Living Better LCC for an extended period.
Health insurance refers to one which covers either part or whole risk of the employee incurring medical expenses. After every month the contract is renewed. It plans on catering for emergency care, hospitalization, rehabilitative services and preventive services and chronic disease management. Personal benefits are those that will engulf maternity and paternity leave in cases of childbirth for both genders. Also, there will be employee assistance programs where employees will have access to private consulting services like counseling when dealing with personal issues.
Commuter benefits provisioned as they are very significant to make sure that the business runs smoothly. Vehicles will be kept at the disposal of the employees during work hours for work related issues, reporting to and leaving the job. Ancillary insurance will cover short term and long term disability cases caused by any non-occupational injury that thwarts employee from making ends meet. Retirement benefits will only apply to employees that have shown extensive work support for an extended period of not less than five years.
The benefits as mentioned earlier will be essential for success of the business. Health insurance will be critical as it is normal for people to fall sick during working days. The health insurance plans on catering for the employees as the number of employees for Living Better LCC will be manageable. It will be a pre-tax deduction on the employee's paycheck. Commuter benefits cannot be left out as most activities of this venture will involve a lot of travel. Living Better LLC is a real estate business that will require searching for deals of rental properties and also the maintenance crew to ensure proper renovation of poor quality units. Transportation of these employees should be covered to limit the cost of their shipping. Hence, this is one of the benefits they are prone to enjoy.
Ancillary insurance will ensure that people who become disabled during employment for non-occupational injuries catered for. Disability keeps one in an improper condition to work hence Living Better LCC wants to safeguard its employee’s needs regardless of their situation. All these benefits should be incorporated effectively immediately apart from the retirement benefit plan. The interests mentioned of Living Better LCC involve everyday living scenarios that can happen at any given time. Therefore, their implementation will be immediately the business is fully developed. The retirement benefit is the only package that employees have a condition to meet before being eligible. It will require an employee to have worked with Living Better LCC for not less than five years.
Better Living LLC has a managerial system that the manager who is at the top of the rank- an entrepreneur, Jeff- and responsible for the business operations. An entrepreneur refers to a person who attempts to profit by risk and initiative (Burns, 2016). Regarding these benefits, he will also take charge in who, how, what, when and why they need to execute them. Health insurance premiums he gets to decide the amount that should be deducted as a pre-tax option to reduce the employees' total taxable income. The human resource manager advocate for the personal benefits that consist of the personal problems of the employees. The function of the human resource manager is to measure employee's satisfaction and serve as a link between employees and the management (Sageer et al., 2012). Hence, this duty of overseeing and ensuring the employees gain the personal benefits befit them perfectly.
Commuter benefits will be overseen by the finance manager who will benchmark the financial health of the business. The amount of money that will be used during the trips that the business's vehicles make should not overstretch the budget allocated. Therefore, the financial manager will be in a better position to control the number of trips and the amount consumed. Finally, the retirement benefits will first go through the manager, who decides the amount payable to retired people. The human resource manager will ensure only persons that have displayed good work ethics and required the amount of service time gets the amount.
For these benefits to not consume a lot of cash from either the business or the employee, smart strategies need to be employed. Therefore, Jeff, the overall manager will first talk to an employee benefits advisor, to ensure he has a better grip on the costs that will incur due to those benefits. There will also be the development of a benefits portal that will contain services offered, to whom, when and why. For instance, the retirement benefit section calculation of amount deducted is automatic for employees who have served for five years and above. The results after all summations will be what the employee gets after service. To estimate the impact of each recommendation, cost projections and comparisons need to be made that the benefits should not outweigh future costs (Shields et al., 2015). To sum it up employee benefits are an investment, so businesses should consider providing them to their employees.
References
Bridge, S., & O'Neill, K. (2012). Understanding enterprise: Entrepreneurship and small business. Macmillan International Higher Education .
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited .
Sageer, A., Rafat, S., & Agarwal, P. (2012). Identification of variables affecting employee satisfaction and their impact on the organization. IOSR Journal of business and management, 5(1), 32-39.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P. & Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press .
