Purpose of the Benefit PlanEmployee benefits are a key component of any company's total compensation plan. Critical thinking and analytical processing must dominate the discussion when selecting which employee benefits to offer as part of an employee benefits plan. This is necessary to ensure that adequate benefits will not only be linked to employee preferences, but will also protect the financial health of the company. These objectives can be achieved by: 1). Determine which benefits are important to different employee groups by conducting surveys, analyzing and interpreting data logically and implementing changes accordingly. 2). Research the current business market and industry standards to ensure the organization's benefits are competitive and positioned to attract top performers. 3) Determine current financial health and impact on the organization to ensure the benefits program is both financially profitable and targets desired outcomes. These elements will allow the company to foster an effective compensation program while establishing a long-term collaborative working relationship between management, employees and the organization. Choosing Benefit PlansEmployee benefit plan design is a flexible plan for an automobile dealership. The cost associated with the flexible benefits plan will be based on the assumption that the health care component is the primary trigger for participation in the program. The remaining options are à la carte elections. Employees will have the flexibility to tailor remaining incentives, based on their needs. The table below lists the different benefit options and the cost percentage associated with each option to create a complete benefit package. Exhibit 1 Flex Healthcare Plan Ala Carte Plan A Plan B Plan CHealth Care Pl...... middle of paper..... .have a limit for dependents.Plan administrationThe benefits management team that will consist of three team members and an outsourced vendor to assist with enrollment, verification and administration of the benefits program. This team will share responsibility for establishing last name letters to ensure responsiveness to customers and will act as a point of contact to resolve any uncertainty in the benefits plan. The outsourced provider will host professional development webinars annually to address changes in legal implications, plan changes, policy changes and best practices for employees and benefits managers. The purpose of the overlap in the benefits section is to maintain the highest level of employee satisfaction with their benefits. Works CitedMilkovich, G., Newman, J. and Gerhart, B. (2014). Compensation. (11th ed.). New York: McGraw-Hill.