As noted previously, the cost of employee benefits continues to increase and according to the Society for Human Resource Management (SHRM), employers are more likely to increase benefit offerings including health-related and wellness benefits (SHRM, 2019). According to their research, employers believe healthcare and retirement benefits are the most important to their workforce. While the return on investment for employers is not easily quantified, Gerhart and Newman suggest a high rate of return if employees are provided with the opportunity to design or choose their own benefit package. (Gerhart & Newman, 2020, p.452). Providing employee choice does complicate the administration of benefits along with determining the funding of them and the legal aspects related to them.

Answer the following questions:

• Analyze how HR can help organizations manage benefits thus contributing to profitability.
• Examine the impact of legally required benefits and discretionary benefits on a companys budget
• Explain how an organization would use both types of benefits to manage and retain talent.