Topic: Module 6 Total

Order Description SEE ATTACHMENT Respond LaShawn Wimberly In order to increase worker’s attention, retention and motivation, companies would have to offer beyond the normal benefits. Education reimbursement is an option because it can be used for continuing education and/or for higher education. On-site child care services are great incentives, it will help to decrease time and attendance issues. Financial counseling will help employees better manage their funds as they receive increases on a yearly basis. These options could help the work life balance of an employee. Retirement benefits are also a plus especially if you work for an organization that vest its employees after three years of service with the company (Milkovich 2013). Defined Contribution Plans are gaining popularity because the employee have control over how the money is being vested, and the risk is up to them. The employee can also borrow from the plan and the greatest advantage is being able to take the plan with you if you decide to work for another company. The Define Benefit is losing its popularity due to not being as flexible. Employees can forfeit the pension if they leave the company before a certain time period and the company can take over their funds and invest as they see fit (Woodman). Renaye Akintonde Benefits are the icing on the cake for many employees. With the cost of health care soaring, employees look to a generous benefit package to ease the financial burden of health-related issues. By the company buying health and life insurance for the company as a group, employees are able to benefit from the large number of participants and subsequently receive a lower premium versus the cost of an individual insurance plan. Benefits are also a type of protection for employees; they reduce the stress of economic insecurity that many workers face, especially those who live paycheck-to-paycheck. In line with the organization’s business strategy, liberal benefits aim at retaining the best qualified employees, and motivating them to stay with the company, even if the economy takes a turn for the worse. Communication and relationship building are skills that a decent HR department must have in order to keep the company from revolving door syndrome. A defined contribution pension plan is versatile and has options. There is the 401(k) plan, employee stock ownership plan (ESOP), and the profit-sharing plan. These types of plans offer the employee flexibility and vesting where “the employee accrues non-forfeitable rights over employer-provided stock incentives or employer contributions made to the employee’s qualified retirement or pension account. Vesting gives an employee rights to employer-provided assets over time, which gives the employee an incentive to perform well and remain with the company.” (Investopedia, 2015). Defined contribution plans are also portable—they can be easily transferred to a new job. However, defined benefit plans are one of the first benefits to be cut from the benefit menu based on funding the plan over a time period that is not defined. Shortfalls on defined benefit plans disrupt core business practices because executives must decide how to keep paying retired employees large pensions and keep the company in the black. (Milkovich, 2014, pp. 466-467).