Benefits Retirement plan Health Insurance Life Insurance Disability Insurance Benefit spent Amount R 800,000 R 75,000...

  

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Benefits Retirement plan Health Insurance Life Insurance Disability Insurance Benefit spent Amount R 800,000 R 75,000 1.2 R 350,000 R 250,000 R 1, 475,000 Direct remuneration Basic pay Differential pay Short and long-term Incentive pay Cash rewards Bonus Direct remuneration spent Amount 200,000 300,000 R R R 150 000 R 120,000 R 685,000 R1, 455,000 Benefit Spent Rate = (Benefit spent = Total remuneration spent) x 100 Employee benefits are often not seen as having strategic value and considered a "second thought". Remuneration analytics can help to look at employee benefits in a way that would allow organisations to get a better sense of how employee benefits can be used for attraction and retention purposes. Study the information below and answer the questions that follow. 1.1 Explain what the benefit cost rate is and its use for organisations. As a remuneration practitioner, you need to do the following: (a) Calculate the benefit cost rate based on the information provided above. (b) Based on what you have learnt in the study material, what is your observation regarding the calculated rate? Benefits Retirement plan Health Insurance Life Insurance Disability Insurance Benefit spent Amount R 800,000 R 75,000 1.2 R 350,000 R 250,000 R 1, 475,000 Direct remuneration Basic pay Differential pay Short and long-term Incentive pay Cash rewards Bonus Direct remuneration spent Amount 200,000 300,000 R R R 150 000 R 120,000 R 685,000 R1, 455,000 Benefit Spent Rate = (Benefit spent = Total remuneration spent) x 100 Employee benefits are often not seen as having strategic value and considered a "second thought". Remuneration analytics can help to look at employee benefits in a way that would allow organisations to get a better sense of how employee benefits can be used for attraction and retention purposes. Study the information below and answer the questions that follow. 1.1 Explain what the benefit cost rate is and its use for organisations. As a remuneration practitioner, you need to do the following: (a) Calculate the benefit cost rate based on the information provided above. (b) Based on what you have learnt in the study material, what is your observation regarding the calculated rate?

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11 The benefit cost rate is a metric used by organizations to assess the cost of providing employee benefits in relation to total remuneration spent I... View the full answer