What are the important strategies to consider when making plans for things such as deciding on benefits for em

Explain to management the primary strategic consideration involved in managing a benefits program that includes health insurance, life insurance, free orthodontics and dental, one week of paid sick leave, one week of paid vacation, 401K savings plan, office incentive program, and some paid holidays.

What are the important strategies to consider when making plans for things such as deciding on benefits for em
Many people have made careers answering this question because there is no easy answer.





Firms of every size go to experts to help them answer it.





Large firms hire large international consulting firms (like Hewitt Associates, Towers Perrin, Mercer consulting, etc.) to analyze the role of benefits in their human resource strategy. They take into account the characteristics of the employee group, the target market the firm is trying to attract new employees from, gov't regulations, and cost. The recommended program is tailored to maximize the effect on employees.





Small firms tend to go to benefit program brokers who offfer a menu of options to select from. The key issue is generally cost, since the simple existence of the benefit program differentiates that firm from its competitors.





In general, the ideas are simple:





You need to look at what your competitors are doing: Are they offering benefits you are not? Is that causing desirable employees to work for them rather than you? Do you offer a program your competitors don't that your employees don't use or care about?





Look at cost:Are the levels of benefits provided adequate and are costs in line with that level of value?





Employee satisfaction: Do employees understand your programs? Do they appreciate the value they receive through the programs?





Are the programs you offer helping employees and achieving your goals for them? Do people complain about the doctors or dentissts they have to go to? Is one week of sick leave enough? (Do people run out of sick days early in the year and come in sick?)





Benefits consultants are out there because it often helps to have outside perspective in assessing these issues.
Reply:Strategic management is the process of specifying the organization's objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization's objectives. It is the highest level of managerial activity, usually formulated by the Board of directors and performed by the organization's Chief Executive Officer (CEO) and executive team. Strategic management provides overall direction` to the enterprise and is closely related to the field of Organization Studies.





“Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political