Developing an Employee Compensation and Benefits Package Report

This report focuses on developing an employee compensation and benefits package for multinational companies. It emphasizes the importance of a comprehensive package to attract and retain employees, including salary and various benefits. The report outlines key components such as health insurance, which is considered a basic requirement, and paid time off, including holidays, sick days, and vacation. It also discusses vision and dental insurance as valuable additions, especially for employees working with computers. Furthermore, the report highlights the significance of a retirement plan and a competitive annual salary to ensure employee loyalty. The inclusion of these benefits is essential for creating a desirable and effective compensation plan, as referenced by various academic sources.

Running head: EMPLOYEE COMPENSATION AND BENEFITS
EMPLOYEE COMPENSATION AND BENEFITS
Name of Student
Name of Professor
Name of University
Title of Course
Date
Author’s Note

1EMPLOYEE COMPENSATION AND BENEFITS
Section 1
Employee compensation and benefits package is an important aspect of every
organization. Usually organizations provide a specific package of comprehensive employee
benefits. They provide these benefits in order to retain as well as attract employees. Along with
salary, a particular package of employee benefit is standard as well as expected of the entire
compensation package (Jackson, Schuler & Jiang, 2014). This assignment discusses regarding
the development of an employee compensation and benefits package for employees in a
multinational company.
Every organization must have a developed comprehensive employee and benefits
package. In order to provide useful and generous benefits to the employees, a proper financial
planning should be carried out. Most of the packages are not very cheap and the costs have a
chance to rise at a very high rate when the company would expand. There are various steps
should be developed in order to develop this package. The steps are as follows
 Health insurance: health insurance can be described as the basic foundation of a
comprehensive employee benefits package which is needed as well as wanted by
employees. Health insurance is usually preferred by all the employees irrespective
of the organization being multinational or small. The organization that has been
chosen should include health insurance as their basic criteria in developing a
package (Brewster, Chung & Sparrow, 2016). If the company wants to include
only one benefit in their package, health insurance should be the one.
 Paid offs from work: usually companies do not include paid offs in their
benefits. Without this benefit any comprehensive employee benefits package
would be incomplete. In the form of employee benefits package, the employers

2EMPLOYEE COMPENSATION AND BENEFITS
provide numerous options with respect to paid time off. Some types of paid time
off that are usually included in the employee benefits package are paid holidays,
paid sick days, paid vacation days, funeral leave and paid personal days
(Marchington, Wilkinson & Donnelly, 2016). This company should also include
paid offs in their benefits package. This has to be included in the package because
it would increase the loyalty as well as honesty of employees.
 Vision insurance: vision insurance is usually a very low cost benefit that can be
added to the package. In most of the cases, this is an optional addition to the
comprehensive health policy. Vision insurance usually pays for the employees in
order to have vision examinations; it also pays a certain percentage of the required
amount for the corrective equipment. Vision insurance can be described as a
desirable component that is included in the list of employee benefits package.
These benefits are occasionally available with the help of health benefits provided
to the employees (Brewster, Houldsworth & Sparrow, 2016). The company
should have this as a component of health benefits package because usually
employees in multinational company work on PCs or laptops throughout the day,
as a result they might face some issues regarding their vision. This benefit would
help the employees to get a vision checkup free of cost and the cost that would be
incurred in the checkup would be reduced as well.
 Dental insurance: dental insurance can be described as a component that is
included in employee benefits package. Numerous dental insurance plans are
included in the health benefit packages provided to employees. This plan helps to
cover a certain percentage of costs that are experienced by employees in attaining

3EMPLOYEE COMPENSATION AND BENEFITS
necessary dental checkup (Albrecht, Bakker & Gruman, 2015). This checkup
includes cost incurred in both emergency as well as preventive care. This kind of
benefit should be included as a component of health benefit provided to
employees.
 Retirement plan: a specific competitive base pay, 401(k) plan and a health
insurance are the most important components that should be included in the
benefits provided to employees. This helps the organization to attract as well as
keep honest and loyal employees in the company (Reiche, Stahl & Mendenhall,
2016). Retirement plan should be included by the organization in its list of
benefits.
 Annual salary: annual salary is one of the most important factors that should be
included in the compensation plan. The employees should be provided with a
stable annual salary irrespective of their performance. The salary might be
increased based on their performances every month (Stone, Deadrick &
Lukaszewski, 2015). The stable salary should not be affected otherwise and the
incentive or over pay might vary every month. This benefit would help the
employees to stay loyal towards the company.

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References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015). Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and
Performance, 2(1), 7-35.
Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management.
Routledge.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human resource
management. Kogan Page Publishers.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human
resource management. The Academy of Management Annals, 8(1), 1-56.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource
management at work. Kogan Page Publishers.
Reiche, B. S., Stahl, G. K., Mendenhall, M. E., & Oddou, G. R. (Eds.). (2016). Readings and
cases in international human resource management. Taylor & Francis.
Stone, D. L., Deadrick, D. L., Lukaszewski, K. M., & Johnson, R. (2015). The influence of
technology on the future of human resource management. Human Resource Management
Review, 25(2), 216-231.