Perspective

The subheadline of a recent article in the McKinsey Quarterly caught my attention, "Most companies treat benefits as a cost of doing business. They should see them instead as a competitive weapon."

The article, by the elite consulting shop McKinsey and Company provides an excellent perspective on benefits as a business tool. In fact, the authors unveiled a stunningly frank notion, "companies aren’t scrutinizing benefits as closely as they do other investments."

In fact, McKinsey takes a comprehensive and more active approach recommending employers tailor an investment in benefits to meet the needs and preferences of employees.

Furthermore, McKinsey charges that Executives consider thoughtfully a benefits strategy that encompasses clearly identified ROI objectives related to benefits. Potential objectives include: productivity, well-being of employees, talent management, community perceptions, union relations, and costs.

Finally, the article discusses the need to take a multi-year approach to benefits planning and implementation. The article states, "Most companies, follow a piecemeal yearly “keep up with the Joneses” approach that has the effect of shifting compensation from the more flexible salary and wages to the less flexible benefits, and as a result it is harder for employers to reward individual employees for their performance differentially."

To read the full article, click here.