Bowers – Discussion 2 Benefits Plan Jeffery Bowers Email this Author 7/27/2016 1:28:55 PM

A benefits plan is just that a plan of benefits that an employee receives as part of the compensation for employment. The text highlights that, “A benefits package will be able to attract, motivate, and retain talent only if its recipients perceive its quality and usefulness” (Youssef-Morgan and Stark. 2014. Chapter 10.4). To ensure that the employee stays motivated and satisfied, the benefits plan has to meet the needs of the employee and the employee has to understand and appreciate the value of the plan.

Mobian, a government contractor’s benefits package is developed on a case by case basis for each employee, that way the employee can help shape and comprehend the package.

One of the most important benefits in today’s society is health insurance. A happy and successful family can end up in financial ruins without suitable health coverage. There are several options the employee can chose from based on what the company plan. The plans vary in coverage, deductible and provider selection. Additionally, for employees that do not require health care due to the being covered by a spouse or an alternate plan, the company offers a 10% increase in salary for non-selection of company subsidized health care.

The second benefit that helps to keep employees satisfied is the company offers a Simplified Employee Pension (SEP) plan. The SEP plan is a company provided and company funded retirement pension plan. The employee receives a credit every year on their anniversary month that is deposited into their SEP account. The company uses a flat rate for all employees no matter the length of time with the company or the level of seniority. All employees receive a compensation of 20% of their annual salary that is invested into their SEP account from President to the lowest employee. This is truly a great benefit because most people do not plan for the future and the company is doing it for you autonomously.

Lastly, one of the benefits that the company provides is Job security and advancement. These are easily combined for the purpose of the discussion because if you are a quality talented employee you will have job security and there will always be opportunities to advance. The company always looks to promote from within and if there are opportunities they allow for lateral transfers to help with building skill sets. If an employee is unhappy or under-utilized, the organization will look for additional opportunities to keep the employee content and be able to retain their services.

The plans have to be dynamic in nature as to adjust for life changing events. But they also have to be understandable. Professor Mulvaney’s article in the Public Personnel Management states, “Management literature has identified connections between employee engagement, job satisfaction, and turnover intentions, agencies face increasing challenges in retaining employees” (Mulvaney. 2014. P. 460). Organizations both big and small have to look at creative ways to entice employees to join and want to stay for the long haul.

Mulvaney, M. A. (2014). Leave programs/time off and work-stress family employee benefits programs, organizational commitment, and self-efficacy among municipal employees. Public Personnel Management, 43(4), 459-489. doi:10.1177/0091026014529661

Youssef-Morgan, C. M., & Stark. E. (2014). Strategic human resource management: Concepts, controversies, and evidence-based applications. San Diego, CA: Bridgepoint Education, Inc.