Scenario 1
Many employees in company A are not likely to have needs for the specifict benefit programs that the company offers, hence it makes sense to get rid of the benefit programs that some employees use and others do not use. The level of benefits provided must meet the needs or objectives of the employees and employers in order to attract employees' willingness to receive benefits instead of direct cash compensations. For company A, the characteristics of the workforce must be considered first when choosing the benefits. In this scenario, Sue is an old female employee whose children are out of college and parents are deceased. It is not likely that the child-care program along with an elder-care program would be highly valued and considered desirable to her. In addition, many other employees have no need for this benefit either currently or in the future. In another word, the benefits program which the company has offered is not attractive or adequate; employees cannot take full advantage of the use of these benefits.
The best way to solve the above problem is using the flexible benefits to employees who have no use of such benefits. A flexible benefit allows employees to choose from a selection of employer-provided benefits to satisfy their benefits need. For company A, the core benefit provides basic need of security to employees, including company retirement plan, health insurance plan, vacation, long-term disability and some additional benefits such as child-care, dental plan, employee and family assistance program, etc, which are based on employees' individual situations or priorities.
There are two parts to a fair benefits procedure in this scenario: purpose and policy. The details of procedure are described as follows:
D ...