Goals for Benefits

Benefits should be looked at as part of the total compensation plan of the organisation. For example, an organisation can select to compete for workers by providing variable pay, base compensation, or benefits, or possibly all three. Which approach is selected based on many factors, like the, organisational life cycle, competition and corporate strategy. For instance, a new firm may select to have lower main pay, and utilize high variable incentives to draw new employees, but keep the price of benefits as low as possible for a time period. Or an organisation that hires predominately younger female workers might select a family-friendly set of benefits by including on-site child care to draw good employees.