Name Student Number External and Internal Factors and how they affect Benefit Packages Course Number Compensation and Benefits Session I FALL 2013 Date Introduction When creating a benefit package for their organization, managers must take into consideration an array of conditions that will affect both the organization and the personnel it employs. These conditions range from external factors such as laws mandated by both local and federal agencies to internal factors such as administrative requirements, cost that stem from purchasing and maintaining equipment and employee incentives.
By the end of this paper, I will explain the ssential role each of these factors play in the establishment of an organization’s benefit package. External Factors One of the biggest, if not the largest, challenge an organization faces when seeking to recruit the best qualified personnel in hopes of building a workforce whose loyalty keeps them from seeking employment elsewhere is to design a benefit’s package that will adhere to all lawful mandates and is perceived as being fair by all employees.
As noted by the author or our text, “companies establish strategic benefit plans on the interpretation of pertinent information in the external and internal environments. (Martoccio, 2011, p. 19) Lawtul mandates, or external factors, are important because failure to follow them will result in stiff penalties for the organization. Federal laws such as the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964, the Social Security Act and the Federal Unemployment Act were designed to ensure employees received fair treatment from employers.