As a manufacturing company, our company must keep up with its competitors not only through service provision but also by adding value to its employee benefits. Employee benefits remain out of focus for both the manufacturing businesses and the employees who work for them. Employees not only look forward to the salary they get paid but look forward to working for companies that value and provide their fulfillment such as health care and other workplace benefits. The manufacturing industry is ranked fourth after finance, information technology, and education on average maternity and paternity leave benefits rating. The manufacturing industry is ranked 3rd in ordinary free foods and snacks benefit written by industry after business services and information technology. Benefit packages offered by companies are highly diverse. Employees look forward to securing access to the benefits and the quality of the benefits that a company provides. This paper will analyze the current trends in employee benefit programs. The report will recommend different employee benefits packages that will improve the company’s competitive strategy within the manufacturing industries.
Current trends in employee benefits programs
The contents in the employee benefit programs within the manufacturing industry constitutes health advocacy programs, proactive health plans, retirement benefits, paid off and work flexibility, and financial wellness tools.
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Financial Wellness Tools
One major focal point across all employee Generations has been financial literacy. Most manufacturing companies have made Financial Planning tools easily accessible to their employees. This has helped employees gain significant traction. Employees can, therefore efficiently manage their student loans, credit card loans, childcare, and retirement benefits. They can accurately predict and make easy decisions on where the money will make the most significant impact hence the companies help them reduce the stress of making critical investment decisions
Paid off and Work Flexibility
Another trend within the manufacturing industry is the paid off and work flexibility benefits for employees. There has always been a debate on whether working remotely is better than working in an office period; the Debate heats both employees and employers (Umamaheswari and Krishnan, 2017). Many companies have evolved and acquired technical tools that employees use in their day-to-day work. These tools have enabled companies to offer more flexible working policies and have kept the companies competitive within the manufacturing industry.
Retirement Benefits
Most companies within the manufacturing industry have retirement benefits for their employees. Most employees consider working for employers that offer retirement benefits.
Proactive Health Plans
Health care costs have continued to rise across many regions in the world. Most companies within the manufacturing industry are looking forward to taking advantage of any possibility to lower insurance premiums and reduce Healthcare costs for the employees (Breevaart and Zacher, 2019). Most of the current generation employees look forward to their employers to help them come up with solutions that assist the introduction and coverage of health care needs.
Health Advocacy Programs
Most employees get frustrated when they get inaccurate bills from Healthcare providers. Most manufacturing companies have come up with health advocacy programs that assist employees in fighting for their Healthcare rights and advocating for sustainable and transparent health care practices.
Recommendations for Improvement
Budget Allocation
Our organization should develop a strategy that will assist in allocating compensation dollars into benefits and salaries. The total compensation budget, but the Company plans to spend on benefits or wages and the budget allocation will determine other incentives.
Develop Salary Ranges
The organization should also investigate developing salary ranges. The salary ranges will ensure that hour company remains within a competitive field of two other manufacturing companies. How companies pay structure should be developed based on crucial benchmarks on similar job opportunities within the same industry.
Salary Audits
How an organization should inculcate a culture of routine salary audits as they are essential in ensuring that the salary ranges reflect the current compensation trends within the manufacturing industry. The company should give more focus on determining how the competitive job positions within the industry when performing an audit.
Performance Management System
The company should also develop a structured performance management system. The performance management systems will be crucial in ensuring that employees meet the corporate objectives, which will be assessed regularly. The performance management systems will include the annual performance appraisals and the development of annual goals.
Legal Implications of Benefits
By developing a well-defined compensation strategy, our organization will be on the right track of legal compliance. All the statutory requirements will be Incorporated to ensure that our company obeys all the state and federal laws. Effective compensation strategies will oversee our company eliminating the natural buses that come up during hiring decisions. The compensation strategies will also ensure that our company complies with the DOL FLSA requirements such as overtime pay minimum wage and Lilly Ledbetter fair pay.
Cost Containment Strategies for benefits
How an organization should develop cost-containment practices to help in maintaining the expense levels and prevent unnecessary expenditure on employee benefits. This is crucial to improving the company's profitability without risking long-term damage to the company's reputation (Breevaart and Zacher, 2019). A company should consider different insurance packages such as health reimbursement, account insurance, medical gap insurance, health insurance, captive insurance, and level-funded insurances to maintain competitive benefits packages to the employees. Our company should also consider streamlining the benefits administration. Our organization can also implement a cost-sharing model for employee benefits.
References
Breevaart, K., & Zacher, H. (2019). Daily Selection, Optimization, and Compensation Strategy Use and Innovative Performance. Journal of Personnel Psychology.
Umamaheswari, S., & Krishnan, J. (2017). Retention Factor: Work Life Balance and Policies–Effects over Different Category of Employees in Ceramic Manufacturing Industries. In Handbook of Research on Human Resources Strategies for the New Millennial Workforce (pp. 329-336). IGI Global.
