Life and disability insurances are easy to eliminate, and the company will still be able to attract new workers since an individual can obtain them through other third-party companies. In addition, I would most likely exclude transportation services, daycare, and wellness programs from the list of discretionary benefits because they cause additional expenses for the company. The sick leave benefit can remain optional, as well as health insurance may cover the costs. To my mind, it would be impossible to eliminate medical, dental, or other health-related benefits completely since the insurance provided by the employer can cover the central part of expenses on healthcare services (Gill & Manning-Hughes, 2017). I also consider vacations as necessary benefits because they can contribute to the company’s productivity: when employees are resourceful, they can achieve better results (Jones, 2017). Finally, the earned leave benefits would be vital to remain within the organization because every employee deserves to have certain privileges once they leave.
Since healthcare costs are rapidly increasing, employers may take action in order to help reduce them. The most vital step is to educate employees about healthcare coverage (Benefitfocus, 2018). Companies can hold seminars for the workers to inform them about their health plans and cost reduction activities. In addition, they may be taught to buy drug analogs instead of spending enormous amounts of money on the original ones. Moreover, the employers could add high-deductible plans to the health saving accounts so that the employees may feel more secure financially (GlobeNewswire, 2016). By letting one’s workers choose a healthcare plan with the help of any health-related decision-making program, it is possible to limit out-of-pocket expenses for both parties.
Benefitfocus. (2018). The state of employee benefits. Benefitfocus Inc.
Gill, S., & Manning-Hughes, R. (2017). 9 trends driving employee benefits in Q2 and beyond. Employee Benefit Adviser. Web.
GlobeNewswire. (2016). Growing number of millennials in U.S. workforce and new technologies lead employers to modernize employee benefits. Web.
Jones, K. (2017). The most desirable employee benefits. Harvard Business Review. Web.