Assignment
Overview
In 3-4 pages, draft and justify a basic benefits plan for a start-up company of fewer than 100 employees.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
• Competency 3: Create a base benefit plan.
o Describe a complete benefits package for a company that would attract highly qualified candidates.
o Determine an appropriate cost target for a benefits package as a percentage of the total compensation package.
o Describe trends affecting a selected cost target.
o Analyze the potential for discrimination in a selected benefits plan.
o Describe the impact and issues that might arise from unintended discrimination in a selected benefits plan.
o Explain the advantages and disadvantages of administering a selected benefits plan in a small employer environment.
Competency 4: Evaluate effective incentives and perks programs.
o Describe business competition in the community and the competitive factors involved in attracting employees.
o Explain how the benefits plan will help retain and motivate the workforce.
Competency 5: Analyze the effects of laws and regulatory agencies on compensation and benefits strategies.
o Explain how to ensure a selected benefits plan will meet legal requirements.
Context
Historically, unions fought hard for pay and benefits for their members. Companies and the government realized that a certain base level of benefits was essential to a healthy national workforce, as well as to a well-funded retired workforce. As demographics and economics shifted in every direction, benefits issues began to become as important as pay issues for ensuring an effective contract between employer and employee.
Fewer than 40 years ago, benefits accounted for approximately one-fourth of payroll. Today, many companies budget benefits at 40 percent of payroll or even more, which is a huge number to fund and manage for any size company (Milkovich, Newman, & Gerhart, 2013).
Reference
Milkovich, G. T., Newman, J. M., & Gerhart, B. (2013). Compensation (11th ed.). New York, NY: McGraw-Hill/Irwin.
Questions to consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
• Years ago the personnel manager and staff handled employee questions and managed the administration of employee benefits. Today, most companies have decided to outsource their benefit administration to third-party vendors. What is your opinion about this? Is the 1-800 number a better solution? Does it ensure more privacy for the employee? Or, is the 1-800 number impersonal, thus making the relationship between employer and employee more distant?
Suggested Resources
The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.
Library Resources
The following e-books or articles from the Capella University Library are linked directly in this course:
• Miller, L. L., & Miller, J. E. (2003). Designing your health benefit plan. Employee Benefits Journal, 28(1), 41-47.
• Hansen, K. E. (2009). 10 ways to contain employee-benefit costs. Advisor Today, 104(4), 26.
Course Library Guide
A Capella University library guide has been created specifically for your use in this course. You are encouraged to refer to the resources in the BUS-FP4043 - Compensation and Benefits Management Library Guide to help direct your research.
Bookstore Resources
The resources listed below are relevant to the topics and assessments in this course and are not required. Unless noted otherwise, these materials are available for purchase from the Capella University Bookstore. When searching the bookstore, be sure to look for the Course ID with the specific -FP (FlexPath) course designation.
• Newman, J. M., Gerhart, B., & Milkovich, G. (2017). Compensation (12th ed.). New York, NY: McGraw-Hill.
Instructions
Given what you know about benefits plans and options, as well as costs and factors for designing a benefits plan, draft a basic plan for a start-up company of fewer than 100 employees in your local community. In your plan, include the following:
1. Describe the benefits options you will offer along with the cost of these options. Explain why you chose these options.
2. Explain which of the benefits you selected would be considered standard, which are unique for your industry, and which would attract highly qualified candidates.
3. Describe your company's competition in your community, and describe strategies to manage the competitive factors that are at play for attracting employees.
4. Determine an appropriate cost target as a percentage of the total compensation package for your total benefits package, as well as the process to determine the cost target. What trends will have an effect on your cost target?
5. Explain how your plan will affect retention and motivation of the workforce. Propose a review plan to maintain a competitive benefits package into the future.
6. Explain how you will ensure that your plan meets legal requirements now and into the future.
7. Will any of your benefits show an unintended preference for people of a certain age, gender, marital status, or number of dependents? Describe the impact and any issues that might arise from this. Suggest best practices to avoid discrimination resulting from the plan.
8. Explain whether you would be able to administer the plan in a small employer environment. What are the advantages and disadvantages of administering the plan in a small employer environment? How might the company leverage the advantages and manage the disadvantages?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.