Promoting benefits and services are generally defined as in-kind (noncash) payments to employees for their membershipor participation in the organizationBenefits and services enable employees to enjoy a betterlifestyle and to maintain a reasonable work/life balance Productivity Improvement
Strategic Importance of Providing Benefits & Services Recruiting and Controlling Cost Retaining Talent- Effective & Financial Efficient - Flexible Benefits Plan - Targeted Benefits Plan Achieving Business Objectives- Employers Business Objectives Communicate which benefits and services can be used to address
Employee Benefits & Services Benefits & Services Monetary / Non MonetaryWithin an Integrated HRM System Provide ManadatoryOther HR Activities Benefits & ServicesFairness & Legal Complienc Social security system Creating Alignment Unemployment Compens. Recruitment & Retention Workers Compensations & Total Compensation Disability insurance Objectives for Benefits Leaves under FMLAPromoting Safety & Health Unionization & Collective & Services Bargaining Contain Costs Attract & Retain Employee Provide Voluntary External Environment Support Strategic Benefits & Services Economic Condition Objectives Retirement savings & Labor Market Communicate Values pensions Laws and Regulations Medical Care Paid Leave Work/life Organizational Benefits & Others Environment Size, Corporate Culture, Communicate Administer Strategy Benefits & Services
Benefits and Services ProgramMandatory Protection ProgramProtection programs required by the federal and state governmentsVoluntary Protection ProgramProtection program that are offered by employers and that are not requiredby law
Mandatory Protection Program Social Security Insurance Unemployment Compensation Workers Compensation and Disability Insurance Familiy and Medical Leave
Voluntary Protection ProgramDefined Benefit Plans- ‘traditional’ pension plans- no longer as desireable as employees enjoyed more job security- benefit plans can be expensiveDefined Contribution Plans- Non contributory plan : only employer contributes to theretirement account- Contribury plan : both employee & employer contribute >IBM : financial investmentCash Balance Plans- employer pays aspecific amount into employees accountup on theirretirement
The External EnvironmentEconomic ConditionsUnion BargainingLaws Regulation
The Organizational EnvironmentSizeLarge firms tend to offer their employees a wider range of benefits &services, compared to small firmCorporate CultureFundamental values set the stage for developing an approach to managingemployee benefits & services- Lincoln Electric : Limited voluntary B&S > Profit Sharing- Google : Innovative B&S > Reinforce It’s CultureThe HR TRIADHR Professional : ensuring the legality & fairness of the package of B&SManager : need to know how managers should treat their employeesEmployee : understand, value & use what’s avaiable > provide feedback
Work/Life Benefits and Services Scheduling Flexitime, compressed work week, telecommuting, job sharing Child Care Services Elder Care Services Domestic Partner Benefits and Services
Other Benefits and Services Developmental Benefits and Services helps workers achieve personal goals while providing the employer with better-skilled employees > reward Personal Services attract employees that they might values : career counseling, travel planning etc Business Travel and Relocation Assistance incur because of business travel
Administrative Issues Determining the Benefits and Services Package Determining the Level of Flexibility Communication
Current Issues Health Care Benefits and Services - Cost Reduction initiative, including consumer driven health care, wellness program & health savings accounts - Hospital utilization program, coordination of benefits, data analysis, Prescription drug management, auditing employee usage Benefits and Services for Retiress many employer have led their employees to believe that they have health coverage upon retirement > retiree e expenses grow > find other ways to pay for their health care after retirement
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