Employee benefits Essay Example | Topics and Well Written Essays - 1000 words

Employee benefits - Essay Example (EMPLOYEES BENEFIT/EXECUTIVE COMPENSATION (ERISA). The flexible benefit programs reduce the taxable income of an employee, as health insurance premiums are deducted from the paycheck before calculations of taxes. This gives the employee the benefit of a higher income for spending, and reduces the burden of the employer in making provisions for a higher income for spending. (FLEXIBLE BENEFITS. OVERVIEW). The key factors affecting the choice of benefits from an employee’s perspective are the choice that is offered in benefits, and the possibility of exchanging one benefit for another. From the employers’ point of view, the choice of benefits enables goodwill and motivation in an employee, and reduction in total employee benefit costs. The key role that communications plays in increasing the perceived value of benefits is that emphasis of the benefits accruing to the employee provides a feeling of caring among the employees, and this acts as a motivating factor that works both in terms of retention as well as productivity. (Glasscock, S. & Gram, K. 1999. WORKPLACE RECOGNITION). Gender is one characteristic that distinguishes special groups, and women form the special group in this category. Minority groups make up the second category of special groups, and may be distinguished, by several factors, which include color, caste, creed and ethnicity. (Griffith, W.R. and Hom, W.P. 2001. RETAINING VALUED EMPLOYEES). The key factors that need to be taken into consideration when designing a compensation strategy for special groups is that they not be discriminated against on the basis of their grouping, and that they be treated as individual employees with no emphasis on their gender, color, caste, creed, and ethnicity. (Griffith, W.R. and Hom, W.P. 2001. RETAINING VALUED EMPLOYEES). The executive pays have always been on