Discretionary benefits are employee benefits given to employees by the employers which are not mandated by law. According to this weeks lecture, there are three main categories of discretionary benefits. These include protection programs, paid time off, and services. For me personally, I think the most important are the protections programs and the others fall into place after that.
Below is the Discretionary benefits list that I would rank most important to least important:
- Retirement (Protection program)
- Disability & Life Insurance (Protection program)
- Paid Time Off
- Family Assistance (Services)
- Employee Assistance Programs (Services)
- Tuition Reimbursement (Services)
- Transportation Services (Services)
- Outplacement Counseling (Services)
When putting this list together, I kept in mind what the benefits did for the employees and what the cost would be for the company. As I said previously, I thought the protection programs were to be the top priority. For retirement and disability & Life Insurance, they effect all of the employees working at the company. This benefit is just like a big back up plan for any situation that would make someone retire. Having this at the top of the list creates loyalty from employees.
Next, I had paid time off on the list. This is important to have as not all companies do this. It allows employees to have a better work/life balance because it allows them to spend time with family without worrying about money. Keeping this as an important priority can boost the employees morale because they are more likely top feel refreshed and now so stressed in the workplace.
Finally, I had the services as the least important on my ranking scale. The order I picked was just based on what I would want as a employee of the company. I also factored in how many people it affected and what was the most useful and reliable as someone working there.
Demographics are statistical characteristics of human populations such as age, gender, marital status, and education level and income. The demographic composition of the workforce plays a significant role in the decision making of the discretionary benefits being offered to the employees. For example, younger workers may not be thinking about retirement and would rather have something else as a higher priority on the list. Other examples like employees with family need different needs than with someone who is single. Overall, it is important to gauge your employees and make sure you have the right benefits that suit the majority of the company.
