The field is very lucrative. I could leave this job at any time and possibly make more money.
Benefits as a part of total employee compensation.Benefits have unique aspects:
a.Legal compliance of benefits likely social security are mandated by law, but for bonus not yet.b. Unique aspect of benefits is that organizations so typically offer them that they have come to be institutionalized.c. Benefits compared with other forms of compensations is their complexity.
Reasons for Benefits Growth
- Benefits is program aimed at buffering people from the devastating of the great depression or crisis of economic.
- Benefits were not covered by wage controls (tax, etc.) and employees channeled more resource in this direction.
- Tax treatment of benefits programs is often more favorable for employees than the tax treatment of wages or salary.
- The cost advantage that groups typically realize individuals. Organizations that represent large groups of employees can purchase insurance at a lower rate because of economic of scale.
- The growth of organized labor enhanced trade union’s ability to organize worker and negotiate contracts with employers.
- Employers may also provide unique benefits as a means of differentiating themselves in the eyes of current or prospective employees.
Procentage benefits from wages and salaries
- SOCIAL INSURANCE. 1. Social Security (SC).SC retirement benefits for fully insured worker begin at age 62 or 65, or depend on insurance regulation.2. Unemployment insurance (UI).UI has four objective (a) o offset lost income during involuntary unemployment, (b) to help unemployed workers find new job, (c) to provide an incentive for employers to stabilize employment, and (d) to preserve investments in worker skills by providing income during short-term layoffs.3. Workers’ compensation (WC).WC benefits fall into 4 categories (a) disability income, (b) medical care, (c) death benefits, and (d) rehabilitative services.
- PRIVATE GROUP INSURANCE1.Medical Insurance (MI).MI providing quality medical benefits likely hospital and surgical expenses, and physicians visits.2. Disability Insurance (DI).DI provide benefits for six months or less to covering the person for life.
- RETIREMENT. 1. Defined Benefits (DB).DB a specified retirement benefits level to employees based typically on a combination of year of service and age as well as on the employee’s earninglevel.2 Defined Contribution (DC).DC based on individual contribution to investment risk and put the responsibility for wise investing.3. Funding, Communication, and Vesting Requirements (VCVR).VCVR guarantees that when they become participants in a pension plan and work a specified minimum number of year.
- PAY FOR TIME NOT WORKED
- FAMILY FRIENDLY POLICIES 1.Child care 2.Medical Care for family
|Benefits Classified TypeGovernment Mandated||Employer Voluntary|
3.Supplemental unemployment benefits
1.Family and medical
3.Alternative work arrangements
2.Early retirement counseling
3.Disability retirement benefits
4.Health care for retirees
6.Individual retirement accounts
|FINANCIAL AND RELATED
1.Holidays and vacations
2.Funeral & Bereavement leaves
3.Lunch & rest breaks
4.Election and jury leaves
5.Military reserve time off
|SOCIAL & RECREATIONAL
3.Cafeteria and food services
4.Facility of sports
MANAGING BENEFITS: EMPLOYER OBJECTIVES AND STRATEGIES
OBJECTIVES OF MANAGING BENEFITS:
- To establish and maintain an employee benefit program that is based primarily on the employee needs for leisure time and protection against the risk of old age, loss of the health, and loss of life.
- To establish and maintain an employees benefit program that complements the efforts if employees in their own behalf.
- To evaluate the employee benefit plan annually for it effect in employee morale and productivity, attendance, employees’ complaints.
- To maintain a level of benefits for nonunion employees that represents the same level of expenditures per employee as for union employee.
- To coordinate all benefits with social insurance programs to which the company makes payments.
- To maintain continual communications with all employees concerning benefit programs.
|Typical Benefits Administration ResponsibilitiesHR Unit||Managers|
1.Develops and administers benefits systems
2.Answers employee technical questions on benefits
3.Assists employee in filing benefits claims
4.Coordinates special pre retirement programs
1.Answers simple question on benefits
2.Maintain liaison with HR specialists on benefits
3.Maintain good communications with employees near retirement
EMPLOYEE BENEFITS BY CATEGORY
Category Procentage of payrol
Legaly required 8.8%
Retirement and savings plans 6.3%
Paid rest 3.7%
Payment for time not worked 10.2%
|How the benefit is spent?Category||Percentage of benefit|
|Insurance payment (medical, vision, dental and life insurance)||24.1%|
|Payment for time not worked (leaves, vacation and holiday)||24.7%|
|Legally required (social security, unemployment and worker’s compensation)||21.4%|
|Paid rest periods (coffee breaks, lunch period, travel time)||9.0%|
|Miscellaneous (educational, assistance, child care)||5.6%|
|Benefits communication media examples for different audiences and purposesMedia||Audience||Purpose|
|Enrollment package||All employees||Announce changes or new hire enrollment only by deadline|
|Teleconference messaging||Remote employees||Provide information on benefitsand change|
|Intranet||All employees||Provide information on benefits,training adn employment policies|
|Summary plan description||All employees||Make availablecomplaience information|
|Webcasts||Regional manager||Share context forchanges and their roles and responbilities|
General regulatory issues
1.Nondiscrimination rules and qualified plans
2.Sex, Age and Disability
3.Monitoring future benefitsobligations