EMPLOYEES BENEFITS
EMPLOYEES BENEFITS:- These benefits include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.),disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.
PROBLEMS FOR EMPLOYEES BENEFITS IN SMALL BUSINESS’S:-
Employee benefits are a normal part of doing business, but for a small business the cost can have a greater impact on profit, cash flow and decisions about investment, expansion and hiring. A small business’s expenses could include hiring staff to manage its benefits program or paying outside benefit plan managers. Managing the benefit plan adds to legal and financial accounting services. Providing leave benefits can adversely affect a small business, requiring the company to hire temporary employee and pay the salary of an employee who is on vacation or maternity leave.
Small-business employees often pay higher portions of the cost of employee benefits plans that offer fewer choices, less flexibility and frequent changes in providers and policies that occur when small businesses shop and negotiate for lower prices. Delayed eligibility means newer employees may not have basic health care benefits. The impact on employee income, reflected in high payroll deductions, can influence decisions to remain with the employer. The added expense of employee benefits makes voluntary participation in employee benefit programs difficult. Workers who cannot afford the cost may choose plans that do not meet their needs or opt out of the benefit plans.
HOW TO DEAL WITH THIS SITUATION:-
Businesses can lower employee benefits costs by offering fewer benefits and passing along more of the cost to employees. Cost-saving measures typically include excluding working spouses and hourly workers from insurance coverage or requiring employees to be on the job for at least three months
PROBLEMS FOR EMPLOYEES BENEFITS IN SMALL BUSINESS’S:-
Employee benefits are a normal part of doing business, but for a small business the cost can have a greater impact on profit, cash flow and decisions about investment, expansion and hiring. A small business’s expenses could include hiring staff to manage its benefits program or paying outside benefit plan managers. Managing the benefit plan adds to legal and financial accounting services. Providing leave benefits can adversely affect a small business, requiring the company to hire temporary employee and pay the salary of an employee who is on vacation or maternity leave.
Small-business employees often pay higher portions of the cost of employee benefits plans that offer fewer choices, less flexibility and frequent changes in providers and policies that occur when small businesses shop and negotiate for lower prices. Delayed eligibility means newer employees may not have basic health care benefits. The impact on employee income, reflected in high payroll deductions, can influence decisions to remain with the employer. The added expense of employee benefits makes voluntary participation in employee benefit programs difficult. Workers who cannot afford the cost may choose plans that do not meet their needs or opt out of the benefit plans.
HOW TO DEAL WITH THIS SITUATION:-
Businesses can lower employee benefits costs by offering fewer benefits and passing along more of the cost to employees. Cost-saving measures typically include excluding working spouses and hourly workers from insurance coverage or requiring employees to be on the job for at least three months