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Benefit, Who need benefit


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Benefit, Who need benefit

  1. 1. “ Benefits? Who Needs Benefit? 01/08/11
  2. 2. It would be an exaggeration, of course, to imply that the company offers no benefit at all. What sort of benefits must a company like this absolutely provides in order to successfully recruit and retains high quality employees? Why? 01/08/11
  3. 3. Benefit policy Tour packages to the employees Sick reimbursement Sales commission on the basis of sales volume Performance bonus Group insurance Pension policy Festival bonus 01/08/11
  4. 4. Reasons for giving benefits Motivation Increase productivity Avoid turnover Feel of their necessity 01/08/11
  5. 5. What are the advantages and disadvantages to Fastonal of offering a pension plan? Do you think it should be implemented one? Why or why not? 01/08/11
  6. 6. Disadvantages for Fastonal Cost will be increased Net income will decrease Shareholders total return will decrease 401(k) option will give some power 01/08/11
  7. 7. Advantages for Fastonal Employee will be more loyal to the company They will think themselves secured. It will be easier for the company to get skilled labor easily. It will help the company to boost their profitability. Employee dissatisfaction will be reduced 01/08/11
  8. 8. It will make the employee loyal. It will make them secured in their future life. It will help the company increase their productivity as well as profitability. 01/08/11
  9. 9. Some critics argue that the labor market is too right for Fastonal to continue to grow as fast it has in the past. Critics therefore suggest that company has a dilemma. Minimizing benefits is a good idea because it keeps cost down; however, it may soon become less a good idea if it make it more difficult to hire good employees. What do you think the company should do? Why? 01/08/11
  10. 10. combination of benefits programs The employer must pay in whole or in part for certain legally mandated benefits and insurance coverage: − Social Security. − Unemployment insurance. − Workers' compensation. 01/08/11
  11. 11. Optional Benefits A comprehensive benefit plan can include the following elements: − Health insurance. − Disability insurance. − Life insurance. − A retirement plan. − Flexible compensation (cafeteria plans). − Leave. 01/08/11
  12. 12. Conclusion 01/08/11
  13. 13. Thank You 01/08/11