Article Review and Critical Analysis

Article Review and Critical Analysis

Introduction

Integrated employee benefit decision making helps employees use their benefits more wisely and identify opportunities to balance their immediate benefits needs (such as health care) and future benefits needs (such as retirement). This paper presents the review and the critical analysis of the article mentioned in the list of references.

Article Review and Critical Analysis

In words of Scott and Tricia (2007, pp. 11-16) employee benefits, sometimes called fringe benefits, are indirect forms of compensation provided to employees as part of an employment relationship. To compete for quality employees in today's marketplace, employers must do more than offer a "fair day's pay." Workers also want a good benefits package. In fact, employees have grown accustomed to generous benefits programs, and have come to expect them.

Beam and McFadden (2001) mention flexible benefit programs have increased in use because they provide a means of insuring that employees do not receive benefits that they do not value, and because they provide a mechanism for introducing cost controls. Many employers have provided full benefits coverage to employees in terms of defined levels of service. As costs increase, any cost-shifting to employees is viewed as a reduction in service (Beam and McFadden, 2001). With flexible plans, a menu of benefits is offered to employees, and choice up to some level of employer cost is allowed. Additional benefits may be purchased, introducing the notion of employee contributions, or copayments. When benefits costs increase, it becomes much easier to shift part of the increase to the employee. Outsourcing of all aspects o f benefits administration is increasing. In many organizations, an employee can call a toll-free number, and the outside vendor will provide any information about the employee's status, can make changes in plan selection, and provide benefits counseling. Organizations adopting benefits ...