key issues in benefit planning, design and administration

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Identify and discuss key issues in benefit planning, design, and administration. Be certain to discuss the four major administrative issues that arise on setting up a benefit package.

Benefits plans is a practical strategy implemented by organizations to motivate, attract, and retain the workforce. Benefits plans have revolved over the decades forcing organizations to decide the role of benefits will contribute to compensation packages. Benefits plans serves as an additional compensation for employees and integrating these benefits serves as a strategy for ensuring external competitiveness and adequacy of benefits. Benefits plans are planned and integrated with managers to enhance the effectiveness of the organizations benefits package. Organizations consider whether employee benefits are cost justified and the financial liability of employees with or without benefits plans. Integrating benefits plans in an organization has cause four major administration issues that have arisen in setting up a benefit package (Milkovich, Newman & Gerhart 2014).

According to Milkovich, et al., (2014) four major administration issues that have arisen in setting up a benefit package are who should be protected or benefited, how much choice should employees have among an array of benefits, how should benefits be financed, and are your benefits legally defensible. First, organizations need to assess objectives and visions to improve benefits plans processes. Assessing objectives and visions aide in the progression of the benefits package to managers in the organization therefore, appraisals identify employees who working beyond to include in the package. All employees should be covered, but which employees and at what position, there is a difference in management levels based on which employees are separated (Milkovich, et al., 2014).

Second, organizations execute a financial review annually to aide in establishing profits and facilitate in calculating the amount of individual employee protected with a benefits package. The flexibility in the plan is considered, organizations choose a plan with the thought given to standard employees and employees who are not offered an option. Third, organizations can sponsor benefits through Noncontributory, Contributory or Employee financed plans. Conduct demographics survey of employees to enhance equality of benefits plans to prevent conflict and discrimination. Fourth, organizations must focus on avoiding misappropriation of funds; reconsider accountability and accuracy of administration implementing the organization benefits package. Benefits packages should meet and comply with all laws and regulations sections of the tax code and conduct audits regularly to be in compliance (Milkovich, et al., 2014).


Milkovich, G. T., Newman, J. M., & Gerhart, B. (2014). Compensation (11th ed.). New York, NY: McGraw-Hill/Irwin.

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