| When an organization designs its overall | | | | and these should look as a part of overall |
| compensation program the critical areas of | | | | compensation strategy of the organization. For |
| concern is what benefits to grant. Selection of | | | | instance, an organization can prefer to compete |
| perfect plan might be a complex and difficult task. | | | | for workforce by giving: |
| Today's workers expect more than just an hourly | | | | - Base compensation |
| wage or basics. They want additional | | | | - Variable pay |
| considerations which will play a significant role in | | | | - Allowances |
| their own and their family's lives. | | | | A new company can choose to have lower basic |
| These considerations in a recruitment setting are | | | | pay and use higher variable incentives to attract |
| recognized as employee benefits. It is a form of | | | | new employees but keep the costs of pluses as |
| indirect compensation given to an employee or | | | | low as possible for a while. Managing staff's |
| group of candidates as a part of organizational | | | | facilities should consider the following issues: |
| membership and creates a healthy administrative | | | | - What expense levels are acceptable for each |
| and monetary impact on business growth. | | | | facility offered? |
| These considerations include retirement plans, | | | | - Which employees should be given or offered |
| vacation pay, medical/life insurance, holidays, sick | | | | which allowances? |
| casual leave, educational assistance, gratuity, club | | | | - What is being received by the organization in |
| memberships, etc. The strategic reasons of | | | | return? |
| offering allowances are: | | | | - How does having a comprehensive benefits |
| - Attracting and holding capable staffs | | | | package aid in minimizing turnover or maximizing |
| - Improving the company's image | | | | recruiting and retention of workers? |
| - Enhancing job satisfaction | | | | - How flexible should be the package of |
| - Encouraging workers morale | | | | advantages is? |
| Comprising facilities package is an integral part of | | | | Wrapping up managing offer or not to offer |
| the total compensation package offered to staffs | | | | employee benefits may be complicated. |