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Promotions and transfers are displayed on the James River Insurance Company intranet for all staff, in all offices to see.Two (2) recommendations for improving the effectiveness of the discretionary benefits provided by James River Insurance CompanyBecause compensation, in its entirety, can play a large part in employee motivation or demotivation, it is important to know what elements within a company’s compensation plan are causing dissatisfaction amongst employees.Discretionary benefits, also known as non-mandated benefits, are benefits given to employees that the law does not require the employer to offer.There are several advantages of discretionary employee benefits, such as boosting productivity, building positive relationships, matching competitor’s benefits packages and offering options (Martin, 2017). James River offers a pretty competitive list of discretionary benefits currently, aslisted earlier.Some may ask “what more can they give?”.The best people to answer this question would be the current employees.James River currently conducts satisfaction surveys onthe work environment and upper management. Implementing a satisfaction survey that is tailoredtowards the company’s benefits package could be beneficial as well. This satisfaction survey willgive Human Resources insight into what the employees feel they are missing from their benefits,
COMPENSATION PLAN OUTLINE6things that may be useless and things that can be done better.Just conducting the survey alone will show employees that the company they work for is listening to them.A benefits package satisfaction survey should shed light on discretionary benefits that employees are using the most and those that are not being utilized enough.Eliminating the unnecessary benefits will make it easier on the Benefits Management Coordinator, and will allowfunds to be funneled into benefits that are being actively used by employees.The additional money may be used to increase other benefits that are found to be beneficial, thus satisfying employees and improving effectiveness.Evaluation of the types of employer-sponsored retirement plans and health insurance programs provided by James River Insurance Company and comparison to the company’s major competitorsBenefits such as retirement plans and health insurance programs are a big part of attracting and retaining employees, as well as giving a company a competitive advantage over their competitors.A 2013 study done by Towers Watson found that:29 percent of employees said retirement benefits were an important reason they decided to work for their current employer.33 percent said that healthcare benefits were an important reason they decided to work for their current employer.45 percent said that retirement benefits were an important reason why they stayed with their employer.47 percent that healthcare benefits were an important reason why they stayed with their employer.(Barnes, 2015)
COMPENSATION PLAN OUTLINE7Currently, James River Insurance Company offers employees 401(k) packages, that include acompany match of 100% of employee contribution up to 6% of annual salary.