EMPLOYEES RETIREMENT ISSUES AND CHALLENGES

Employees Retirement Issues and Challenges

Employees Retirement Issues and Challenges

Introduction

Most benefits are a form of non-taxable income to employees, providing them with such advantages as retirement provisions, paid personal time, insurance and health protection and various other employee services. Benefits are to increase an employee's feeling of security, happiness and wellbeing. The aim of benefits is to attract better, more skilled employees and be competitive in local market for most positions. The benefits provided can range from bonuses for performance to different insurances to discounts or even material gifts.

It depends on the company, market and employee structure and needs which benefits will provide the best effects on performance and company culture. Benefits can also be used to increase employee loyalty, by providing more than do others, thus relieving their company of costs associated with finding a replacement. Some benefits may seem inadequately expensive while others might be more effective in achieving the objective with less cost. However, it is important not to look at just the obvious price, but also at the other costs associated with providing or not providing a benefit.

The hidden cost of not providing a benefit is the cost of high turnover, the cost of lost productivity or the costs of providing other substitute benefits. The workforce quality goes up with the quality of benefits provided. The more and the better benefits an organization provides, the more skilled workforce it can attract and retain. If education is provided as a form of benefit, it can be the means of having higher skilled workforce without the need for recruitment(Smith, 2003).

Discussion

Retirement sounds great right, you just can't wait until that day comes when you don't have to worry about traffic on the way to work, or if your boss is going to hassle you for that simple mistake you made yesterday. Well there are some things you should know about retirement, like for instance financing your retirement is not going to be easy. As it is today no one person can live off what the government sets aside for each of us when we hit the major milestone in our lives known as retirement, also known as 65 years of age.

So, you sit there and ask yourself what can I do? Plan, and do this by putting your faith and money into accounts handled by people who know what they are doing, because if you don't make money they don't make money. These different accounts are 401 (k)'s, pensions, IRA's, and the lovely and faithful social security. There are plenty different types of retirement funds it is up to us as a society to use them to our best abilities and capitalize off of them(Milkovich, 1988).

Retirement Benefit Plan

A retirement or a saving plan is a provision, which provides an income or pension to the employees after their retirement from work, when there is no source for earning a stable income. In an organization, the employer and the higher management team ...