Administration Process:
Organizations basically assume a social responsibility for the welfare of their workers and dependents despite paying them fairly and adequately for their work and contributions towards the achievement of organizational objectives. The social obligation for the well-being of employees and their dependents is carried out through the establishment of a benefits and service program. The need for establishing such programs is because employees expect to enhance productivity through increased job satisfaction and a sense of security that comes from benefits though the benefits are not directly linked to product output. However, there have been numerous concerns on whether these benefits and services stimulate enhanced job performance by employees. Despite these concerns, there is proof that even a limited and unacceptable package of benefits and services help in preventing high-quality employees from seeking for other employment opportunities.
Generally, a good benefits program helps in developing a motivational working environment that stimulates a person to join an organization and stay with it (Henderson, 2006, p.421). Notably, benefits and services become complex rapidly and require full-time measures of specialists due to various factors such as legal and financial interactions, number of available components, and variety of alternative features within a component. However, the involvement of these specialists...
Therefore, an organization must develop an effective administration process for employee benefits program.
Benefits administration involves developing and managing the benefits of workers while providing them with a mechanism for training to understand how these benefits work and the specific standards employees should meet to qualify for them ("What is Benefits Administration?" n.d.). While most of this work is usually carried out within the Human Resources department, it involves ensuring that the current benefits plans are functioning smoothly through effective coordination. However, many organizations have established special units mandated with the responsibility for designing and administering the benefits program because of growing complexities, significance, and costs of benefits provided by the employer. The administration process of a benefits program basically involves benefits planning and design and benefits communication. Benefits planning and design involves establishing minimum length of service for eligibility for a benefit, probable employee contributions and vesting plan for pension plan, health insurance plans, and alternatives to be incorporated in medical insurance. Benefits communication involves developing sophisticated communication plans to notify employees of their…
