An employee benefit plan is?a benefit-in-kind offered to an employee by an employer other than the usual salary wage which is subject to various taxable deductions.? The employee benefit plan varies from one organization to another. It has various advantages that enable the growth of an organization or a company. A majority of companies are compelled to implement an employee benefit plan as it serves the core needs of the organization. The following are reasons as to why organizations ‘should implement employees benefit plan and they include A healthy workforce, motivated employee, Improved job performance and decreased turnover rates
?Firstly, providing health benefits such as insurance covers to employees has increased the level of?productivity in an organization. The health benefits such as visiting various specialists the overall health of an employee thus?avoiding absenteeism during working days. The health benefits also ensure that proper care is given to the employees to improve their overall health status. In cases where an employee has an infectious disease the sick days leave are applicable as to avoid spreading of the infection to other employees of the company.?
Secondly, the organization creates these benefits to employees so as to motivate them and increase their work efficiency and effectiveness. Motivation?boosts the morale of employees thus making them become more innovative with ideas and ways of improving the organization. Moreover, motivation serves as a means of making the employees?loyal in doing their job with seriousness and dedication. Thus creating a positive working environment that fosters the growth of employees.
??Thirdly,?another advantage of employee benefits is improved job performance of employees in an organization.? Once a positive working environment is present it enables their employees to have a special workforce that meets the targets. Since their employees are motivated and are happy with their working environment they will work hard to achieve and meet their expected goals of the company. This includes a meeting of sales targets of an organization improved customer service and increased profits.? Thus meets their shareholder’s expectations enhancing the growth of the organization through return on investment.
However, employees’ benefits the retention of employees in an organization. During the recruitment stage when employees are aware of the benefits it gives them a positive outlook value about the organization. Moreover, the benefits?retain the employees for a longer period thus reducing the overall costs of recruiting a new workforce. The provision of retirement benefits also offers a sense of security to employee thus maintaining the present talent force of the organization.
Finally, benefits such as education support employees to improve their overall skills and level of education. This contributes greatly to the company workforce and enhances employee development and retention. It also improves the status of employees thus creating a rich culture workforce that is highly skilled thus a positive outlook of the company.
?In conclusion, employee benefits contribute greatly to the growth of an organization. Therefore, organizations’ should take note of?the key benefits that motivate individuals in their workforce. The benefits help to improve the overall effectiveness and efficiency of employees.