One of the biggest challenges in the benefit determination process is that employees differ considerably in their demand for benefits and even more clearly in the types of benefits they demand. This seems to vary most noticeably with the personal circumstances of the employee. For example, the desire for retirement benefits typically rises with age. Employees with children value childcare assistance more than employees without children. If an employee is covered under a spouse’s or parent’s major medical insurance plan, the value of that benefit is insignificant. In all these cases, it should be noted that the employees base their decision on theirperceived need, not on the cost of the benefit to the organization.
From your perspective, rank order the importance of the following employee benefits as part of a compensation plan. 1 = the most important benefit; 10 = the least important benefit.
- Employee assistance plan
- 401(k) plan
- Health insurance plan
- Life insurance
- Dental and vision insurance
- Short- and long-term disability insurance
- Childcare assistance
- Tuition reimbursement
- Paid vacation
- Paid sick leave
In addition to ranking these benefits, your discussion board posting should address the following: What factors were the most important to you in determining your ranking of priorities among the benefits listed (i.e., age, gender, marital status, number of dependents, etc.)? In other words, why did you rank one benefit higher than another? You should provide this analysis for each of the benefits.
Your initial posting is due by the end of Module 7. Your initial posting should consist of a minimum of 4 full paragraphs. Please make certain to cite any outside sources used.
