Final answer:
The first question an organization should answer when designing a benefit plan is the role of benefits in their compensation strategy, which guides all other decisions.
Step-by-step explanation:
When designing a benefit plan, an organization should first answer the question: What is the role of benefits in our compensation strategy? This initial step is crucial because it determines the overall objectives and guides the subsequent decisions regarding the types of benefits to offer, their cost, and how they compare to the competition.
Once the role of benefits is clear, the organization can address other important considerations such as affordability, employee preferences, and competitive benchmarking. This strategic approach ensures that the benefits support the organization's overall goals, attract and retain talent, and are financially sustainable.