Costs of benefits Essay Example | Topics and Well Written Essays - 500 words

Costs of benefits - Essay Example This paper gives an analysis of the results obtained from StopNShop Today Inc especially on the competitiveness of its benefits package and the benefits it accrues from the package. As much as it is of a necessity for any organization to conform its benefits package to the prevailing ones within the economy it operates, it is also ethical that organizations make their packages more attractive and above their competitors so as to retain the best of human resource within the market (Barnow et al, 2013). The review report from StopNShop Today Inc study review of its packages reveals an interesting trend within the organization. More weight is given to wages and salaries as in forms the core of the organization’s incentive to its employees. This is followed by the total costs incurred on benefits to the employees with the rest given very little weight. Of more interest is the allocation to retirement and the savings that come with it. It is the least area over which the company allocates its resources. The trend within the U.S economy is of greater interest and explains further the recent decision by major organizations to review their benefits packages (Barnow et al, 2013). As of the year 2004 towards the year 2008, the general of cost allocation to benefits and remunerations was on a declining slope which gives a reflection of the economic times during such periods. Between the year 2008 and 2010 there was a steady increase in the general allocation of resources to benefits and remunerations. Such an action reveals that the companies were experiencing economic boom and thus could easily afford to increase the allocation of their resources to benefits. The general trend in the statistics available at the U.S Bureau of Statistics shows that most organizations do allocate between 40% and 47% of their resources towards the benefits of their employees with the percentage allocated to