You were recently hired as the new Human Resources manager for a new company that has
been in business for two weeks. The CEO is looking to you for your expertise in
compensation and benefits to develop a package for all full-time future employees. The
CEO is estimating that in the next four months this company will have over 40 full-time
employees. The CEO is leaning on you to develop a report for the board meeting in two
weeks.
Some things to consider: Though most employers are required to provide mandatory
benefits such as Social Security contributions, worker’s compensation insurance, and
unemployment insurance, most other benefits are voluntary in nature and determined by the
employer. Benefits programs should include medical insurance, life and disability
insurance, retirement income plan benefits, paid-time-off benefits, and educational
assistance programs. Benefits selection and design are critical components in the total
compensation costs. In some cases, benefits account for 40 percent or more of total
compensation costs. Due to the employer cost investment and the importance of employee
benefits in recruiting and retaining, employers should have a well-thought-out benefits plan
design that meets both employee needs and employer objectives.
Develop a compensation and benefits package for your company. You must first address
the type of company you were hired for (your choice). Second, you must select the city and state in which the small company is located (your choice). In your HR Compensation and
Benefits Report to the board, you must address the following:
1. Identify the Organization’s Benefits Objectives and Budget: The organization’s
business and/or HR strategy will help guide the development of the benefits
objectives, as these objectives should help achieve the overall strategic goals. Factors
such as employer size, location, industry, and collective bargaining agreements
should be considered in the development of the benefits objectives.
2. Conduct a Needs Assessment: This needs assessment will be based on your
company’s location and estimated future size. It should be conducted to determine
the best benefits selection and design based on the needs and wants of the
employees. The needs assessment may include an employer’s perception of
employee benefits needs, competitor’s benefits practices, and tax laws and
regulations.
3. Formulate a Benefits Plan Program: Using the data collected from all resources in
Step 2, the employer can begin to formulate benefits offerings in order of priority.
Can changes be made to the current plan design to induce cost savings? Can benefits
that are underused or not valued by employees be eliminated? What are the
administrative costs for the benefits? What cost-containment features can be put in
place? Will employees have to contribute, and how much? These are among the
evaluations an employer will make in determining whether to add, change, or
eliminate benefits offerings.
4. Communicate the Benefits Plan to Employees: Employee understanding of the
benefits is critical to employee buy-in. Without buy-in, the employer’s efforts, no
matter how perfectly designed to meet employees’ needs, may be futile. The positive
impact on recruiting, retention, and employee morale may be lost without effective
communication plans. Good benefits communication objectives should include:
• Creating awareness and appreciation of the new or existing benefits and
improving employee financial security.
• Providing a high level of understanding of the benefits offered.
• Encouraging wise use of benefits.
5. Develop a Periodic Evaluation Process to Determine Effectiveness of Benefits:
Periodically reviewing the benefits plan program is another important step in the
benefits management process. The benefits program must be assessed on a regular
basis to determine if it is meeting the organization’s objectives and employees’
needs. Changes in the business climate, the economy, the regulatory environment,
and workforce demographics all create dynamics that affect benefits offerings.
6. Christian Worldview: What is God’s approach to money, and how we are to
care for others? Provide a verse from the Bible, and discuss how this relates to
the HR process.
Requirements: Prepare this HR Compensation and Benefits Board report using the following
guidelines:
• A minimum of 6 pages not to exceed 10, typed, double-spaced, Times New Roman
font, using APA standard
• Title page, including the title of paper, your name, course name and course
number, date of submission (page 1)
• Include a summary of your understanding of the biblical implications for the
topic (pages 2-6)
• Reference page, including a minimum of 6 references are required, including the
text, the Holy Bible, books and articles from academic sources (Net Library), and
other periodicals.
