Question

Many compensation professionals are faced with making choices about which discretionary benefits to drop because funds are limited and the costs of these benefits continually increase. Assume you make such choices. Rank order (at least five) discretionary benefits from the ones you would most likely eliminate to the ones you would least likely eliminate. Explain your rationale. Do such factors as the demographic composition of the workforce of the company matter

Answer 1

Answer:

Here are some of the Discretionary Benefits I will eliminate alongside my rationale:

1. Utility subscriptions: Employees that enjoy this benefit will take a break. The reason is to channel the funds in supporting company's growth.

2. Sick leave: I will eliminate this benefit because if I have a health insurance policy on ground, the sick leave benefit is optional. Therefore, it's monetary value will be inculcated into the health insurance policy.

3. Funeral expenses: I will rather organize a team of few employees to represent the organization in any case of funeral ceremony. A representation of the company will give the individual a sense of belonging.

4. Vacations: I will not totally eliminate vacations but I will rather focus on vacations that will also help promote the progress of the organization.

5. Earned leave: This will be difficult to eliminate and it will be the least I know look at.

Employees deserve their earned leave in every organization.

The demographic composition will slightly be affected because the discretionary benefits give the employees motivation to work and when such benefits are absent, it may likely affect workforce.