Ideally, to determine the cost-effectiveness of a benefits program, controlled experiments comparing the advantages and costs of one type of benefit with the advantages and costs of air alternative benefits need to be conducted. let’s know about corporate efforts to measure benefits in detail.
Corporate Efforts to Measure Benefits
Some companies attempt to measure problems that would occur if benefits were not provided. These costs usually include such negative consequences as turnover, absenteeism, and tardiness decide to measure out-of-pocket expenses associated with turnover, such as interview costs and hiring bonuses.
This led to a look at the causes of turnover and to the adoption of new policies in flexible work hours and career development to cut turnover.
Some companies are even attempting to measure more complicated linkages among benefits and other factors. One U.S. Company that has attempted to quantify productivity figures and flexible schedulings is Merck and Company.
It interviewed and surveyed a large number of managers and developed a list of 30 cost variables attached to turnover. After developing several methods of cost determination, it determined that depending on job turnover costs 1.5 to 2.5 times the annual salary paid for the job.
As a result of this study, the company is attempting to enhance the benefit programs that it believes reduce turnover. In a study of daycare at Union Bank in California using before-day-care and after-day-care cost data on absenteeism, turnover, and maternity leave time for both a control group and an experimental group.
Union concluded that time daycare center saves a substantial amount of money a year.
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