...CHAPTER 12 EMPLOYEE BENEFITS CHAPTER OVERVIEW The chapter is introduced with the stories of three loyal, long-term employees whose retirement plans were drastically altered. Due to changes in their employers’ pension plans, each person was forced to adapt to reduce payouts. The stories reflect changes in benefits happening in countless companies. Benefits are generally membership-based rewards which are desirable to employees and which can be designed to meet the diverse needs of today’s workers. The costs and complexities of both legally required benefits and voluntary ones, such as health insurance, retirement plans and time off are presented, as well as current issues, including flexibility of benefits choices and availability of benefits for families, domestic partners and retirees. Effective benefits administration allows companies to attract and retain good workers by creatively and cost-effectively offering employees more than just their paycheck. Additional Features of This Chapter: Exhibit 12-1 is a listing of the major benefits typically offered and the percentage of employees participating. Exhibits 12-2 and 12-3 provide sample Health Maintenance Organization and Preferred Provider Organization coverage plans. Exhibit 12-6 calculations demonstrate the financial impact of flexible spending account plans. “Ethical Issues in HRM” discusses the issue of benefits for domestic partners. “Diversity Issues in...
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...workers with low productivity who take off of work on a whim. Data will show that, in fact, parents are productive members of the workforce despite substandard policies (and lack thereof) for family leave. Data will also show that when workers are provided with paid leave, some managers and employers pressure employees not to utilize the time off. Multiple studies have shown that nationalized mandatory paid leave policies are an economic boon to countries. In fact, states within the US that have enacted paid leave at the state level have seen the advantages. Solutions to these problems range from personal changes to national policy. Unfortunately the political climate of the United States prevents national policy changes, regardless of the data proving the benefits. Progress is being made as far as awareness of the issues discussed. Further improvements depend upon multiple points of change: economic development, social beliefs, and an understanding of the data. Managers who are hiring have a preconceived notion that parents are poor workers or are more likely to take off more time than childless workers (Linn, 2013). Since the economic downturn of 2008, businesses have depended on worker dedication to do more with fewer employees. This has led to a work culture where all employees are expected to dedicate their lives to the company. Those without children are more likely to be hired because it is assumed that they have no needs outside of the office (Linn, 2013)...
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...sector corporations (Steiner & Steiner, 2012). Resulting in high unemployment rates and slow economic growth (Steiner & Steiner, 2012). There has been strains placed on the permanent employment system in Japan, because of the larger number of older workers and the increase in the retirement age (Gould, 1984). Historically the U.S government did not interfere in employee relations; employees at times were treated like property, or as a means for production cost. There was decreases in wages and no incentive to improve working conditions. In the 1930s is when the U.S government started to regulate the workplace power imbalance and employee favoritism. There was a substantial difference between the attitude of Japanese and American employers. In America, terminations and layoffs are familiar; there have not been any alternatives to these procedures in times of...
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...Executive Summary Now day’s compensation strategies are charged with supporting the company’s mission and objectives through the development and implementation of strategies, which ensure that valuable workers feel secured at their work place and rewarded for their accomplishment. A successful company focused compensation strategy including tuition reimbursement, bonus and paid time off. They are valuable programs and creating attraction process for most common compensation programs. These strategies are useful tool to improve employee satisfaction and work ethics. But, used incorrectly, it can cause some financial damages and relation disconnect between company and work forces. Bonus, tuition reimbursement and paid time off can be created to reward individual performance which is related to company’s mission and building trust in the organization. Company can use these strategy tools to communicate a fresh commitment from the employer to the employees and remind workers how much they are appreciated. The purpose this report is to determine the proper amount of compensations gets applied for different jobs in the organization. The organization because persuading the incorrect determination can cause bad implications for the company and damaging the work ethics of the employee organization as well as the employer’s power to hire qualified employees. Another purpose of the research report Well treated employees make a major role in a company’s power to improve its product...
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...performance. Compensation Methods Compensation and benefit strategies are ways that organizations can use pay and benefits to recognize and reward employees’ contributions to the organization’s success (OPPapers, 2008). In a retail or customer service organization, workers are usually compensated by one of the following methods: 1. A direct salary or hourly rate, 2. Salary in addition to commission, 3. Quota bonus, 4. Commission without advances or 5. Commission with advances. Although commission payments are tied to sales, the requirements of the exemption are that more than half the employer’s compensation characterizes commissions on services; which can include all sorts of commission usually based on the services in which the organization provides and not solely those measured by sales of goods and services. An organization has several choices in regard to compensation methods. It not only affects the business, it also affects the future of the employees. Other than compensation and pay, one of the major compensation packages an organization can offer is...
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...the United States is named the Family and Medical Leave Act (FMLA). The FMLA is a federal law that “requires employers with 50 or more employees to provide 12 weeks of unpaid leave to employees who have worked at least 1,250 hours in the previous 12 months” ("State Family and Medical Leave Laws"). Also it is “the first job protected national maternity leave policy” in the United States (Berger). This act was the fist medical leave act in United States, made in 1993 to “promote economic stability and preserve family integrity, to entitle employees to take leave for medical reason to care for a child…and to provide equal employment opportunity for men and women” (Berger).The...
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...more than 34 states. REI embodies its values by serving and supporting its employees through programs that allow them to flourish and do their best. Employees are offered a variety of benefits and perks that show REI’s respect for its employees and their families. REI offers competitive pay and benefits such as: 401K, vacation, paid holidays, paid sick leave, casual dress, life insurance, disability, flexible work schedule, and educational benefits. All employees who were paid an annual salary as high as $70,000 per year had the following benefits: 401K, vacation, paid holidays, paid sick leave, casual dress, flexible work schedule. Employees with life insurance and disability made a salary as high as $82,000 annually. Employees with education benefits made salaries as high as $65,000 per year according to Pay Scale report of 2009. In addition to these benefits, REI also has an Incentive Plan, Healthcare, Family & Medical Leave, Employee Discounts and Pro-deals, Work/Life Employee Assistance, Public Transit Subsidy, Relocation Support, Sabbaticals and Adoption Assistance. Controlling employee benefit costs can be a tricky subject for an organization such as REI. However, every business wants happy and healthy employees and this is why most organizations offer a benefits package to full-time workers such as health insurance and paid vacation and sick leave. Depending on how much REI can afford to spend on employee benefits annually, especially with health coverage, they can...
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...Green Cycle Recycling Company May 2014 Dear Jonathan Doe, Green Cycle Recycling Company is pleased to provide you with your overview 2014 Total Compensation Statement. Within every successful organization, you will find hardworking and dedicated employees. At Green Cycle Recycling, we realize that employees such as you, who efficiently utilize their time and talents to further the growth of our organization, are our most valuable asset. That is why we proved competitive salaries and comprehensive employee benefits. This total compensation statement will briefly outline the benefits that are provided by Green Cycle Recycling, as well as the cost of those benefits. Please read this information carefully and if you should have any questions, do not hesitate to contact Kelly Wilmington at 877-967-5464. It is our hope that your benefit package will provide added security for you and your family. We appreciate your contributions and dedication to our team. Sincerely, Kelly Wilmington, President and CEO Statement period 2013 to 2014 Your Personalized 2013 Compensation Statement Jonathan Doe 302 North Dupont Highway New Castle, DE 19720 Benefits Medical Medical benefits are provided through Dental Dental benefits are provided through Life Insurance Life Insurance coverage is offered free of charge through BLANK at one times annual earnings up to $50,000. Short Term Disability Coverage is offered through Long Term Disability Coverage is offered free...
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...Rewards Program Date: August 27, 2010 Forward Style Inc. is a marketing company with 65 employees. The following memo provides an evaluation of the organization’s current rewards program. Some benefits are mandated by law. Other benefits, although not mandated by law, are subject to government regulations. The evaluation addresses legal requirements and how the offered rewards affect the organization’s ability to retract and retain key employees. Social Insurance Social Security benefits, mandated by law, are financed by both the employer and employee. Employer’s payroll tax equals 6.2% and employees’ equals 4.2% through 2012 (IRS, 2012). The maximum taxable earnings amount is $110,100. The Medicare tax rate is 1.45% for both employers and employees. There is no limitation for taxable earnings on Medicare taxes. Because mandated by law, Forward Style Inc. does not have influence in design of this benefit. Unemployment Insurance also mandated by law is financed by federal and state taxes on employers. The Federal Unemployment Tax (FUTA) rate for 2012 is 6% on the first $7,000 of each employee’s wages. Employers may claim a credit against their FUTA tax for contributions paid under state statutes, up to 5.4% of wages paid. New Mexico’s wages subject to tax is up to $22,400. The minimum rate is 0.05% to 5.4% in 2012 (Tax Policy Center, 2012). Employers are advised of the contribution rate in March of each year. Forward Style Inc. can keep its experience level low by...
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...USA Motors Will the incentive plan to reduce absenteeism succeed? Explain your opinion. The new incentive plan Jack Parks developed to reduce absenteeism is, “if a chronically absent employee exceeds the standard, then vacation, holiday, and sickness/accident pay would be cut by 10% during the next six months (Strayer University syllabus, P.8). If worker absence continues to exceed the allowable limits, then vacation, holiday, and sickness pay would be cut during the next six months by the actual percentage of absent days incurred by the chronic absentee”. In my opinion, this incentive plan will work. To me, you have some responsible employees and some irresponsible employees. This may work for those that are responsible that will use their time wisely and understands that they are employed to produce for the company and it cannot be done if they are not there. On the other hand, you have those irresponsible employees that take advantage of every chance they get to try to beat the system. So, for them, they will quickly realize that if they continue the excessive absences, they will lose their time, with no one else to blame. This would probably make them more cautious of taking unnecessary time off and maybe understand the effect it has on the company and other employees. How much absenteeism is really under the employee’s control? Based on a Google definition, absenteeism is regularly staying away from work or school without good reason. There are two different...
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...separate time off into vacation, sick leave, personal leave, and other types of leave. In contrast, paid time off (PTO) banks typically combine all time off benefits into one cumulative bank of days which an employee can draw upon for any need. The delineations of such plans vary by employer (Lindemann & Miller, 2012). In an organization, employees may receive time off for as compensation benefits. This may include sick leave, personal leave, vacations, holidays, etc. Different organizations have different PTO policies. Paid time off can be defined as any time that is not worked, but is paid. Although these plans are costly to companies, they view these plans as employee friendly. Companies try to offer the best plans, which are very competitive in attracting and retaining a talented workforce (Smith, 2012). Most employers prefer to come up with paid time off plans. This creates a flexible arrangement that allows the employee to use his/her off days at his/her discretion. The amount of days off accumulates through the years of service, and his/her position in the organization. Some companies allow their employees to carry their unused leave days for the next period. Some companies pay cash for their employees leave days while others insist those days to be taken as specified in the employment policy. Sick-leave programs provide short-term insurance to workers against loss of wages due to short-term illness. In 2011, 37 percent of U.S. firms offered paid sick-leave benefits....
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...CIPD ASSIGNMENT SUBMISSION DECLARATION To be completed by candidate: |Centre name: |ACACIA LEARNING | | |Candidate name: |Ali Yassen | | |CIPD Qualification undertaken: | |CIPD Membership No: | |Unit code(s): |3MER | |Unit title(s): |Supporting Good Practice in Managing Employee Relations | |Unit tutor: |Mr. Kevin | |Date due for assessment: |08-05-2016 |Date submitted: |05-05-2016 | |Word Count: |3490 | |State number of word used | | |Candidate declaration: ...
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...management to use in strategic planning and setting organizational goals. HR Planning Process * Scanning external environment for changes affecting labor supply * Internal analysis of people and jobs * Forecasting HR demand & supply * Reconciling Demand & supply * Scanning external environment: * Workforce composition (Gender, racial, educational changes.....) * Work pattern (Use of contingent workers, alternative work schedule, sharing jobs..) * Government influences (Govt. trade policies and restrictions affect HRP) * Economic conditions (Business cycle of recession and boom, inflation, unemployment,........) * Scanning external environment: * Geographic and competitive concerns (Other employers in the area, employee resistance to geographical...
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...law refers to written agreements and oral promises * General principles of contract law determine whether an employer-employee relationship exists and what remedies apply to breach of the employment agreement. * A contract has three elements, offer, acceptance and consideration. * Tort law refers to any wrongdoing * A tort is a wrong for which there is legal remedy. * Tort law is a branch of civil law and covers wrong and damages that one person or company cause to another independent of any contractual relationship between them. * Tort can be deliberate or negligent. In order to establish negligent tort, the plaintiff must prove 1 that the defendant owed the plaintiff duty of care, 2 the duty of care was breached, and 3 the plaintiff suffered foreseeable damages as a result. * Common law is the legal system used predominantly in Canada – it derives from England * It is precedent-based law, where we follow past court decisions and existing laws (known as statutes) * Laws must be followed by all citizens, governments, and courts * Within each law is a REGULATION, which are enforcement tools of the law * E.g. Employment Standards Code is a law in AB, but its regulations actually enforce the law (carry it out) * For employment matters, contract law is important because there is an EMPLOYMENT CONTRACT between an employer and employee. * For employment matters, tort law is important because there are wrongdoings that may be committed...
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...could cause more turnover, and financial burden due to high turnover rates. First, identifying the reasons for employee retention can be difficult especially in large companies. There could be ample stipulation regarding the reasons for turnover however, until the true reasons are identified, the problem can not be resolved. There are many employers in the medical field who believe pay is the biggest reason for turnover yet many don't offer basic perks. A "survey from 110 healthcare organizations--finds that 42% of health care organizations offer total reward strategies, such as retirement plans and vacation, compared to 70% of other industries" (news-medical.net). It is old news for all of us in the medical field, retention is a big problem. Many employees feel overworked and under rewarded in the medical field and this is a huge problem when there are other organizations where nurses, billing clerks, and even physical therapists can find jobs. For example, nurses and billing clerks can easily find a job at a big insurance company, especially if they have prior experience at a clinic or other medical facility. This is where the employer must identify the problem and offer the things that can help retain these much needed, skilled employees. Employees who feel they are over worked can be another issue with employee retention. In the medical field since there is such high turnover, nursing staff typically have to take on very heavy loads in hospitals and nursing homes....
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