01 Jul EMPLOYEE BENEFITS
Employee benefits
Employee benefits are a compensation tool to increase employees motivation and productivity. There has been a tremendous growth in the number and cost of employee benefits over the twentieth century. When a benefit is first introduced, it is an “extra” and may be appreciated as such. However, it may soon become routine and expectations would be revised upwards.
Review employee benefits and their impact on employee motivation and productivity and respond to the following:
• Has the expansion in the number and cost of benefits resulted in increased motivation and therefore increased the productivity of the workforce? Or are benefits an expectation and therefore yield little motivation or productivity growth?
The rising cost of employee pensions has forced some employers to move from a defined benefit pension program to a defined contribution benefit program.
Respond to the following:
• Compare and contrast the major features of defined benefit and defined contribution benefit pension programs.
º Elaborate on the advantages and disadvantages of each type of program for the employer and the employee, along with the implications of a defined contributed benefit program for an employees future job and economic security.
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