Our group discussed the ranking of discretionary benefits in terms of laws and regulations and company costs in-class discussion. The opinions of the panelists were very similar, except that I ranked the company performance bonus third. Here are my top five benefits to keep.
- Health, Dental, Vision (88%)
- Vacation time & paid time off
- Company perks
- Retirement benefits (401K)
- Paid maternity/paternity leave
A performance bonus is more important than retirement benefits because a performance bonus is very important to achieve goals. It is the main means for the company to motivate employees to work hard. I think it will bring benefits to both the company and employees. Paid maternity leave is often based on a company’s demographics, including the percentage of women and the percentage of spouses trying to conceive. According to the survey, health insurance and paid vacation are the most important benefits for employees, with 88% paying attention to health insurance (Jones, 2020). Health insurance reduces the likelihood of employee absenteeism due to health and helps the company retain employees. On the other hand, paid leave helps employees balance work and life, which in turn helps employees maintain productivity and morale.
Also, I have listed two items that I would most likely eliminate.
- Student Loan assistance
- Transportation services
Usually, student loans are more expensive, small and medium-sized companies don’t have enough money to offer such benefits, and from 2015 to 2018, only 4 percent of the organizations provided such services (Miller, 2018). Therefore, the cancellation of student loans will not significantly impact the company; employees can get student loans from school or other ways. The transportation service largely depends on the geographical location of the company. In remote areas, almost every household has its vehicle, and the equipment cost and management cost of transportation service are too high. Transport services are also not irreplaceable, with public and private transport generally more popular. I prefer to stop using it and invest in other benefits.
Miller, S (2018). A 401(k) Twist on Student-Loan Aid Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/pages/401k-twist-on-student-loan-aid.aspx
Jones, K (2018). Employee Benefits Study: The Cost and Value of Employee Perks Retrieved from https://www.frac.tl/employee-benefits-study/