Getting the most out of a benefit program, especially in the long run, requires aligning benefit programs with an organization's overall business strategy and compensation philosophy. Benefit planning inevitably involves trade-offs between an ideal package and one that will maximize the desired impact at an affordable price. The three most important factors that must be weighed are:
• What benefits can the employer afford?
• What benefits will best attract and retain the employees needed to execute the organization's business strategy?
• What benefit vendors provide a quality and consistent product now and will continue to do so in the future?
Strategic planning allows employers to take the initiative in balancing employees' needs with a budget. It can involve taking advantage of new tools, such as electronic plan administration, and offering new benefits beyond the traditional health, disability, and life insurance and retirement ...