OL 211 Discussion- Discretionary Benefits in organizations. PDF

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The reason why employers offer discretionary benefits and how it helps in employee engagement. As well as the various types of discretionary benefits offered by employers...

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Discretionary benefits are benefits the law does not require an employer to offer. (Martin, 2019). Employers offer these benefits by paying parts or all of the cost so that the employees

can pay a reduces amount. Such benefits offered to employees may include health insurance, maternity leave, childcare assistance, life insurance, educational assistance, sick leave, and pension plans and are meant to “create a work-life organizational climate that allows employees to balance their work with their personal need.” (Snell et al, 2019). These benefits can help to attract prospective employees and also help to retain talents already employed. An employer may offer discretionary benefits to employees so as to build positive relationship with the employee, boost productivity, and also to match competitor’s benefits. When employees are offered useful benefits, it makes them feel valued and can determine whether they stay or leave / how long they stay with that organization. One of the benefits that are most important to me and has made me keep working where I currently work is educational assistance. I have been wanting to further my studies, so when I found out about this program that is practically offering me free education, giving me a chance to improve myself I was excited and immediately knew I was going to stay longer working there because leaving the company means forfeiting this benefit. Another benefit that is most important to me is pension plan. The pension plan offered by the company is a defined contribution plan in which the employer matches an employee’s contribution dollar for dollar after working for 1yr with the company. This is important to me because it helps me to save a pre-tax portion of my earnings that can generate a long- term tax savings to fund my retirement. The third important benefit for me is the paid time off (P.T.O)/ payment for time not worked. This benefit is offered by my company on the bases of hours worked. The

number of hours worked determines the hours of P.T.O that an employee accrues, which can then be applied to leave request in order for the employee to get paid when on vacation. This benefit is very important to me because, every now and then I get overwhelmed, especially having to manage work, family, and studies. It is therefore necessary to take some time off to relax and get refreshed so as to avoid stress and burnout and consequently increase my productivity.

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References Martin, M. J. (2019, March 11). The advantages of Discretionary employee benefits. Bizfluent. https://bizfluent.com/info-10004508-advantages-discretionary-employee-benefits.html. Snell, S. A., Morris, S. S., & Bohlander, G. W. (2019.). Managing Human Resources: 17th Edition |. Cengage Learning....