Designing a Benefit Plan - Research Paper Example

Offering great benefits can help a company recruit talented employees. Good benefit packages help companies increase their employee retention rate. Some of the benefits that companies can provide to their employees include extended sick and vacation days, medical plans, profit sharing, stock option plans, pensions, IRA, 401k, maternity leave, paternity leave, wellness programs, flexible time, and telecommuting.

A trend in the medical plans companies offer to their employees is increased costs. In 2013 medical costs in the United States are expected to increase by 5% (Mercer, 2012). Companies have to keep track of the medical profession since the government in the future might implement a universal health plan that would put the burden of the nation’s medical costs on the government, instead of the private industry. In the 21st century, employees care a lot about having a work-life balance. A benefit that can help employees achieve that goal is flexible time.

Flexible time is a work arrangement that gives employees the ability to set their own hours during the workweek. Telecommuting is also a hot trend. Telecommuting involves having employees perform work from their homes.