Human Resource: Retiree and Employee Benefits

Retiree and employee benefits were not considered as an important compensation for a good number of employees until mid-20th century. The percentages of these benefits in relation to total payroll figures vary from one country to another.  Developing countries are leading the pack of those economies offering a generous compensation to their employees and retirees with their compatriots, the third world countries, not doing well.  With the financial uncertainty crippling the world, most companies are aiming to cut down their costs and the immediate casualty program is the employee and retiree benefits scheme. It is apparent to mention upfront that employee benefit plans greatly affect the operations of a company. Therefore, a company seeking to attract and retain employees needs to be sensitive on how it handles the benefits issue. This paper seeks to critique management decisions to do with the reduction of retiree and employee benefits.