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Can You Offer Different Benefits to Employees?


It’s a challenging task when you have to create a benefits package for your employees and ensure that they are satisfied. Your employees have different needs, and they have different life aspirations. Thus, it’s always advisable to create a tiered system whereby the employees receive various benefits based on their needs.

By offering them different benefits packages, you will satisfy your workers, and you increase your chances of retaining them. Besides, some businesses have embraced the tiered system, and they have succeeded in motivating their employees.

Here are ways to offer different benefits to employees along with the benefits.

Offering Benefits Based on Their Ranks

You can decide to separate your workers into groups and reward them with benefits depending on their position in your company. For instance, a legal team can be divided into paralegals, associates, and partners. The benefits you award each category depends on the volume of work they deliver and their significance to your business.

You can get more info on better ways to offer benefits to employees based on their ranks from online sources. Some online resources will provide you with insight into better coverage tailored to meet your needs as the employer. Consider getting a platform that you can use to award benefits to your workers, enabling you to work with confidence and without bias.

It’s a Motivational Factor

Offering employees different benefits might be a means to motivate them. For instance, lower employees tend to put more effort into enabling them to reach high-level executives’ status. The vast benefits package often drives the low-level employees to get senior executives benefits.

Thus, it’s evident that lower-level employees are motivated by the vacation time, better retirement packages, and the better insurance cover that upper-level employees receive. They will work harder to attain the status and earn higher benefits, and this will be to your advantage, as the employer. 

Changing Benefits for Classes

Regulations that are stipulated under the Health Insurance and Accountability Act state that employers have a right to restrict medical coverage for drug types, treatments, or personal ailments that could be viewed to be unnecessary.

However, such exclusions only apply to employees who fall in a particular class, such as junior employees. As an employer, you cannot implement the Act’s provisions immediately after adoption since it would target some benefit recipients if a new health condition crops up.

Benefits Based on the Time Spent at the Organization

You can choose to offer different benefits to your employees based on the milestones that they have made at the business.  It comes down to the time that they have spent at the business and their input. To retain the most experienced, you must offer incentives.

You can organize your employees into clusters and award them with benefits packages depending on how long they have remained at your company. For instance, you can offer employees who were hired in 2010, a higher package than those employed in 2020. 

It’s Possible if You Don’t Discriminate

You can create different benefits packages for all your workers, but it would be unethical to discriminate against some of the workers. For instance, awarding better packages based on religion, race, or ethnicity while offering lower benefits to other workers who don’t fit your criteria, can be viewed as the misuse of power.

You will end up demoralizing your employees, and you won’t like the outcome. When coming up with criteria to award benefit packages, you must set clear guidelines that will divide employees based on employment classification and not biased judgment.

It’s legal to offer different insurance covers to workers, but it would be inappropriate to provide an employee package based on their medical conditions. For instance, it would be unethical to discriminate against employees with chronic illnesses.

You fail to employ them since you fear that their disease would worsen, and the insurer would force you to enroll for higher premiums. You must treat everyone within a given class equally and offer them the same benefits packages.

Creating the right compensation plan can be a challenge. Employers are often encouraged to implement a tiered compensation plan in their businesses, which is fair since employees receive their compensation depending on their class.

You can offer different benefits to employees, but you should be fair to everyone. Besides, by providing various benefits to employees, you will reduce expenses, and employees will be motivated to receive higher packages; hence, they will work harder. Ensure that you set criteria for each tier, you assign benefits to each tier then explain the compensation structure to all workers.