An employer may provide discretionary benefits to the employee, which is not mandated by law. These benefits are considered to be additional “perks” of the position. Examples could include pay for time not worked, health and medical insurance, and retirement plans. However, while the benefits may not be required by law, there may be laws regarding the administration and design of said discretionary benefits. For your initial post, answer the following questions and provide support for your arguments:
What role(s) can discretionary benefits play in an organization’s HR function and why?
What should an employer take into account when designing a discretionary benefits program and why?