Discretionary Benefits: Entitlement or Performance-Based?

Topic: HR Management
Words: 293 Pages: 1

Many employers have differing opinions from that of their employers on how discretionary benefits should be issued to the workforce. Since they are not mandated by law to be provided as a compulsory benefit to employees, there is a bone of contention as to whether employees are entitled to the additional benefits or receive the benefits on performance-based examinations of their work output. Employers should offer discretionary benefits as an entitlement part of the insurance contract because employers deserve them more than they know and because it is beneficial to the employer both financially and ethically.

Employees who work in dangerous environments may require health insurance, among other benefits that make their work environment safe. A good example is those working in nuclear power plants where any slight mistake is of grave danger to their health. The hazards they are exposed to are dangerous. In addition to that, benefits such as maternity leaves have to be availed to pregnant female employees who are considered disabled due to their pregnancies. Contravention of such rights amounts to discrimination in the Disabilities Act (U.S. Department of Labor, n.d.). Other benefits are more beneficial to the employer than the employees.

Benefits beneficial to employers include pension plans, group life policies, and group personal accident covers. The monetary benefit is that employers would not have to dig into their pockets to pay disability benefits if one of the employees becomes incapacitated. In addition to that, employers who offer these benefits are more likely to attract quality human resources than those who do not. Therefore, employers are entitled to discretionary benefits because they deserve them. It is ethically good to employ a person and not invest in their retirement, and the employer would lose their workforce because of this.

Reference

U.S. Department of Labor. (n.d.). Americans with Disabilities Act. Web.