From the moment an employee agrees to start his or her employment with you, the management of their benefits should be an immediate concern.

Employee benefits are, in many instances, the key deciding factor for an employee's choice of employer where salaries and location are relatively parallel. Benefits can provide the winning edge in attracting employees that are in high demand, for example graduates, skilled workers and those with experience and those with a successful record of accomplishment.

However, the management of these benefits is important. If benefits can be exercised too early, there is the possibility that an employee can take advantage of them and then leave before the employer has had an opportunity to derive value from them. Therefore, in my opinion, the employer should set in place terms and conditions that need to be met before the benefit becomes an employee right. For example, pension contributions or health services should only become operation after the employee has served a certain time with the organisation. This gives the employer time to evaluate whether the employee in question is adding value to their business.

Managing benefits is important as it allows these to be offered as a reward for commitment and dedication, rather than a right to be exploited by the employee.

Learn more about this author, Paul Lines.
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