Employee Benefit Package (Case Study)

Employee Benefit Package (Case Study)

EmployeeBenefit Package (Case Study)

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EmployeeBenefit Package (Case Study)

Humanresource management comprises of all activities in an organization tomaximize the utilization of employees. This entails hiring, training,evaluating and compensating employees (Foot &amp Hook, 2011). Thisis done so as to achieve the organization’s goals and objectives inline with ensuring employee satisfaction. In essence, modern-daystrategic human resource management invests heavily in employeeloyalty to the organization (Cameron &amp Green, 2015). It has beenproven that employee satisfaction yields positively to the success ofan organization. Of great importance, therefore, it is the workingcondition of the employee population. This entails the physical andprofessional working environment alongside considerate compensationbundles.

Today’scompensation not only comprises of wages, but also other subsidiarybenefits in terms of health care coverage, retirement pension plans,and housing. Workers who participate in overtime working are alsocompensated for the extra working hour. To better understand theconcept of employee compensation, this report analyzes the operationsof Jackson, Smith and Henderson CPA firm. By the end of thiscomprehensive analysis, we should be able to formulate a sustainablecompensation strategy for this firm and also understand thecomplexities behind the implementation of a strategy. The use ofpart-time employees has been adopted by different organizationswhether large or small scale. These employees work less than the fulltime employed ones (Doerpinghaus &amp Feldman, 1993). The managementof the part-time workers is an essential element as it passes bothmerits and demerits to the organization as well as to the entireemployees in an organization (Groden, 2015). Balancing the benefitsbetween the two sets of employees is an essential aspect of the Humanresources department.

CaseSummary

Jackson,Smith and Henderson, CPA firm have just under a hundred employees.All these employees are full-time and are eligible for the legallyrequired benefits alongside healthcare insurance, a 401k pensionplan, vacation days and sick days. In a bid to expand its operationsin the firm wishes to introduce part-time workers in severaldepartments. The task ahead of the newly appointed director of humanresources Alan Jones is to harmonize the full time and part timebenefits of the employees. He should analyze the current situation ofthe firm so as to come up with a strategic and sustainable plan onemployee benefits. With reference to the case study in question, therecent HR director hired (Alan Jones) was supposed to navigatethrough a set of challenges and in turn formalize the organization`sHuman resource practices.

Factorsto Consider in Choosing Employee Benefit package

Theemployee population is key to the success of Jackson, Smith andHenderson, CPA firm and, therefore, the need to consider theirbenefits packages so as to enhance their productivity. In the modernmanagement, the employees/workers in every organization have becomean integral part towards the realization of success, and customersatisfaction. The operations of this firm are however unique andtherefore as the firm introduces part time workers, the followingfactors must be considered.

  • Goals and Objectives: Jackson, Smith and Henderson CPA firm aim at being the leading accountancy firm, offering the most reliable and accurate services. Being one of the fastest growing certified public accountancy firms in the area, the firm has a great potential to expand. The human resource director should, therefore, project the effects of introducing part-time, workers. These workers should enhance the growth of the firm and further propel its success in achieving its set goals and objectives (Parrish, 2014). Organizational goals and objectives are termed as the key drivers of an organization`s operation, and in turn should be adhered to as much as possible.

  • Financial Strengths: implementation of any employee benefits packages translates to additional costs to the firm. There is, therefore, need to carry out a cost-benefit analysis in order to ascertain whether or not the firm is financially stable. To begin with, the firm should be financially secure to cover employee benefits prior to their productivity. This should, however, be done after the productive capacity of the potential employees has been ascertained to yield positive results (Doerpinghaus &amp Feldman, 1993). Additionally, the budget constraints should be considered so as to ensure the firm does not operate on deficits. The firm, therefore, should assess its financial strengths so as to ascertain that part-time employees will ultimately yield profits to the firm (Berman &amp Knights, 2013).

  • Human Resource Ethics: ethics in the human resource have evolved significantly with time. Modern day human resource departments cover all practices in hiring, evaluation and compensation of employees. More specifically, strategic human resource focuses on compensation packages to employees, which yield maximum satisfaction (Opiela, 2000). Therefore, the director of human resources at Jackson, Smith and Henderson CPA firm should ensure that these ethics are not compromised in providing employee benefits to both full time and part time workers. In addition, the firm should combine these ethics with the legal requirements to ensure smooth running of the firm (Deckop, 2006).

  • Prevailing Employee Benefit Packages: the job market for CPAs is very competitive with many firms striving to establish themselves. For Jackson, Smith and Henderson CPA firm remain relevant it must keep up with trending benefits packages of their competitors. A survey of CPA firms benefit schedules at a part time workers revealed that 95% of firms reported time off offerings, 75% offered health care insurance and 67% offered retirement benefits. This, therefore, indicates that this firm should make its decision in line with this general trend of CPA firms providing benefits to part-time workers (Erickson, 2012).

  • Priority Benefits: a wide scope range of employee benefits packages exists, but firms can provide these benefits by prioritizing them. Health care insurance is the most valued benefit to employees and this translates to insurance premiums to firms (Haar &amp Kossack, 1990). Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) are the most common options for covering the health benefits of employees. Secondly benefits of paid time off are regarded highly by employees, which are convenient for vacations, maternity leaves and flexibility of working schedules (Opiela, 2000). Thirdly, retirement savings benefits are important in instilling job security and employee loyalty. Therefore, the human resource management team should consider these priority benefits to yield maximum productivity of both full time and part time workers (Butler, 1999).

Recommendations

Itis important to boost employee morale by the provision of benefits tothe employees as a sure way of maintaining their enthusiasm. Employeesatisfaction is one of the positive aspects that propel the positivegrowth of an organization. Therefore, it is important to providebenefits to both part-time and full-time employees. Bearing in mindthe budget constraint of this firm, the director of human resourcesshould only provide the health insurance benefits package to theincoming part-time, workers. This is the most valuable benefit of theemployees and, therefore, would provide part-time workers with asubstantial benefits package. More importantly, the firm should onlyoffer this benefit so as to maintain a strong financial avenue toensure that its profitability is again not compromised. This shouldbe done as a pilot project to evaluate the performance of the firmafter incorporating part-time workers to its staff. However, aftersome time when the firm is well established with both employeegroups, it should provide part-time workers with additional pensionand paid time off benefits. Financial stability of the organizationshouldn’t be compromised despite the need for employeesatisfaction.

Inconclusion, Jackson, Smith and Henderson CPA firm initiative to hirepart time employees is a step in the right direction into futuregrowth and development of the firm. This is in line with the conceptof change management which is important for today’s firms in a fastevolving world (Huber, 2003). The director of human resources AlanJones should, therefore, recommend this move to the company’s boardof directors. This will lead to the growth of the company into agreat CPA firm and widen its scope by having a greater talent pool.From the information provided, and the case study in question,employee benefits, whether one is part-time or full-time employeesshould be set in a definite way in accordance with the factorsidentified above. This would enable the organization to maintain abalance between the organization goals, employee satisfaction, andreward/benefits and at the same time maintain improved performance.

References

Berman, K., &amp Knights, J. (2013). Financial Intelligence: A Manager`s Guide to Knowing What the Numbers Really Mean. Harvard Business Review Press.

Butler, R. J. (1999). The Economics of Social Insurance and Employee Benefits. Springer.

Cameron, E., &amp Green, M. (2015). Making sense of Change Management A Complete Guide to the Models, Tools and Techniques, Organizational Change (4th Edition ed.). Kogan Page.

Deckop, J. R. (2006). Human Resource Management Ethics. Information Age Publishing.

Erickson, T. (2012, September 7). The Rise of the New Contract Worker. Harvard Business Review.

Foot, M., &amp Hook, C. (2011). Introducing Human Resource Management (6th Edition ed.). Financial Time / Prentice Hall.

Huber, G. P. (2003). The Necessary Nature of Future Firms: Attributes of Survivors in a Changing World. SAGE Publications, Inc.

Parrish, S. (2014, April 21). Employee Benefit: Return on Investment or Return on Individual. Forbes.

Haar,J., &amp Kossack, S. (1990). Employee Benefit Packages: HowUnderstandable Are They?.&nbspJournalOf Business Communication,27 (2), 185-200.

Doerpinghaus,H. I., &amp Feldman, D. C. (1993). Employee Benefit Packages forPart-Time Workers.&nbspBenefitsQuarterly,&nbsp9(2), 72-82.

Opiela,N. (2000). The Employee Benefit Package: Helping Clients AvoidSurprises.&nbspJournal Of Financial Planning,&nbsp13 (5), 62-67.

Groden,C. (2015). Why employers are offering more generous benefitpackages.&nbspFortune.Com, N.PAG.