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INTRODUCTION
Total compensation consists of more than an employee's base pay. Other non-cash rewards, loosely called benefits, are used to supplement an employee's salary as part of the total compensation package.
These benefits can include:
- paid time off
- health and life insurance
- retirement plans
- perquisites and services
Benefits help employers attract and retain employees. However, administration can be complicated. Benefits are unlike direct compensation in that they are:
- provided to meet different objectives
- designed as a package for employee groups, not for each individual employee
- administered by different systems
Since pay and benefits together make up the compensation costs of the organization, there is always a trade-off between direct compensation and benefits. In order to give more of one, you must give less of the other.
Today, employees are often willing to exchange a pay raise for day-care assistance, better health care coverage, or an opportunity to purchase company stock. Employees will also stay with an employer who offers better benefits, even with lower pay. This makes benefits an effective tool for retaining staff. By offering highly valued benefits, an organization can more effectively attract and retain qualified employees.
Course Overview
Effective employee-centered benefit programs are vital. This course will teach you how to plan these programs.
We'll cover strategic benefits planning, including:
- what benefits to offer and to whom
- managing benefits
We'll also look closely at the rising costs of benefits and options for controlling these costs.