Problem
How do legally required benefits relate to a company's competitive advantage? And, which benefit(s) do you feel are most impactful. Explain.
READ Student Response: Legally required benefits relate to a company's competitive advantage by gaining tax advantages and recruiting the best qualified candidates. Legally required benefits include healthcare benefits, worker's compensation, Social Security, and unemployment insurance. As discussed in the textbook, "management can use discretionary benefit offerings to promote employee behaviors that have strategic value." (Martocchio, 232) Also, a company can use discretionary benefits to distinguish themselves from competition by conveying the message that they are a good place to work for because they invest in the well-being of their employees. As a result of this, "lucrative benefits programs will presumably attract a large pool of applicants that include high-quality candidates, positioning a company to hire the best possible employees." (Martocchio, 232)
The benefits that I believe are most essential are the four mentioned above that are legally required benefits. Healthcare benefits, worker's compensation, Social Security, and unemployment insurance are essential requirements that contribute to basic needs of employees across the board. However, for competitive advantage, the most impactful are ones that offer retirement programs. Since companies are required to offer those four benefits, retirement programs and 401k's appeal to potential employees. There are also companies that match contributions to 401k plans, attracting top talent and encouraging retention.
What to do: Respond to the above discussion post, demonstrate more depth and thought than simply stating that "I agree" or "You are wrong."