Introduction
The success of a company depends on factors such as innovation, profit margins, and the quality of its services. A company can only remain competitive if it has competent and creative personnel. Many employees are motivated to work for companies that offer competitive benefit plans. Thus, a benefits package of a company can influence the kind of employees that it attracts. Consequently, a company that has a good benefits scheme is likely to motivate its workers. This paper discusses the benefit plan of an event-organizing company and the factors that influence the options in the benefit plan.
Benefit Plan
The company will provide the following benefits to its employees. First, all its employees will be entitled to health insurance. The employees will choose between the Health Maintenance Organization option and the Preferred Provider Organization option (Inc, 2010). “Employees who will choose the Health Maintenance Organization option will be expected to identify a primary physician who can direct them to other doctors in the Health Maintenance Organization network” (Inc, 2010).
The company will pay a monthly premium of $100 for every employee under this option. The employees under this benefit scheme will be required to give a copayment. On the other hand, “the Preferred Provider Organization option will provide employees with multiple choices in terms of doctors and hospitals” (Inc, 2010). Furthermore, this option will enable employees to access doctors and physicians who are not part of its network (Inc, 2010). However, the company will only pay for outpatient services provided to employees. Employees will also pay additional medical fees. This option will cost the company $150 per employee.
Second, the benefit plan will include a retirement savings scheme. In this option, employees will contribute 20% of their gross monthly income towards their retirement benefits. Additionally, the company will contribute an equivalent amount every month towards retirement savings. This option will cost the company $4,000 per month.
Third, the company will offer two weeks paid vacation to junior employees and a maximum of three weeks to employees in senior management positions. It will also pay $250 for extra working hours.
Factors Influencing the Options in the Benefit Plan
A number of factors influence the aforementioned benefits. First, the company will adopt a standard health insurance plan for its employees as required by the law (Entrepreneur, 2010). It will also have a unique benefits package for vacation and extra working hours. These benefits will enable the company to attract the most competent person in the event-organizing industry. For instance, many event-organizing companies do not compensate their employees for extra working hours (Allen, 2010). Additionally, most companies only offer a maximum of two weeks for vacation. However, this company will offer a maximum of three weeks for a vacation to its senior employees.
Second, the nature of competition in this business segment influences the options in the benefit plan. For instance, the success of an event-organizing company depends on strategic marketing and advertising. It also requires innovative employees who can attract more clients. At times, employees may work beyond the stipulated working hours. Additionally, employees in event-organizing companies require adequate time for a vacation because of the demanding nature of their job. As a result, a company can only attract the most competent employees by providing benefits such as payment for extra working hours (Allen, 2010).
Third, this benefit plan is suitable for the company because it has a strong financial base. The company will spend 30% of its total compensation package on employees’ benefits. Thus, the company will spend $15,000 per month on the employees’ benefits package. However, this expense will be affected by the rate of inflation and the amount of profit the company will make in a given financial year.
Fourth, this benefit plan is likely to motivate workers. For instance, the retirement savings plan will motivate employees to work in the company for a long period (Entrepreneur, 2010). Hence, it will reduce the rate of employees’ turnover. Additionally, the payment for extra working hours will encourage employees to work beyond the official working hours. In order to implement the benefit plan effectively, the company will work with a benefits consultant and a lawyer (Entrepreneur, 2010). This will ensure that all the options in the benefit plan are implemented according to the legal requirements.
Finally, the benefit plan will not result in any form of preference in terms of age, gender, marital status, and a number of children. All employees will be treated equally as per the provisions of the benefit plan. However, this plan will be suitable for medium and large companies. It is not suitable for small companies because it requires a lot of capital to execute.
Conclusion
A competitive benefits plan can enable a company to attract competent and creative employees. However, it can also lead to high expenses. This can translate into losses if a company does not have a strong financial base. Thus, a company should plan for employees’ benefits packages carefully.
References
Allen, G. (2010). Basic Benefits Plan Booklet. New York: Eagle Publishers. Web.
Entrepreneur. (2010). The Basics of Employee Benefits. Web.
Inc. (2010). How to Build a Competitive Employee Benefits Package. Web.