Medical Reimbursement Usually MTCC Company looks after their employees’ health and safety. In this company medical reimbursements includes hospital expenses, routine health care visits. It’s very rare that a company provides disability insurance for their employees in Maldives. Medical reimbursements can help to retain and motivate employees. Overtime Pay Overtime pay is another compensation that is offered to the employees. After working for the normal working hours, overtime sometimes may be introduced to various reasons. In MTCC the overtimes are calculated with a given percentage over the base salary per hour worked after the normal time. Leave Travel Allowances Leave travel allowances are provided to retain the best talented employees …show more content…
It includes everything from legally required public protection programs such as Social Security to health insurance, retirement programs, paid leave, child care or moving expenses. Indirect financial compensation is a benefit given to an employee that has financial value, but is not a direct monetary payment. It is often referred to as a noncash benefit. In certain circumstances, these noncash benefits may be more valuable to an employee than a high salary or wage. Fringe benefits are also an indirect form of compensation given to employees in addition to the various forms of cash pay- base pay, dearness allowance and inventive pay. They provide a quantifiable value for individual employees. They are the indirect form of compensation as they are not related to the performance but are granted to the employees for just being a member of the organization. They are called benefits as the employees stand benefited on account of such provisions. They are not in the form of wages, salaries and time related payments. For example key executives in large companies might also enjoy fringe benefits like use of time-share condominiums, paid continuing education, use of a company jet, use of a company credit card, discounted or free health club memberships, and a significant amount of paid vacation. Below are some indirect compensations included in MTCC …show more content…
Medical expenses are the expenses cost for the medication of the patient. Not every company gives such facilities to the employees. MTCC gives such facilities to the employees to motivate them and to retain them to achieve the goals of the business. Food allowance: This is an allowance where MTCC provided for their staffs. Such allowances will help the employees to save it for future use. Training and development: For the training of the employees this company provides short term training programs in abroad like Japan, Thailand and as well as in Maldives. This will increase the productivity of the organization and the employee turnover rate will decrease when they get such opportunities. Foreign staff expenses: Until 2016 there are total 1421 employees in MTCC. From 1421 employees there are more number of foreign employees working in MTCC. Those staff expenses are carried through the company and it is a huge benefit for the foreign staff to work in MTCC. Awards: Those employees who had worked in this company for long period of time are awarded and the retired employees are also rewarded in the name of reward of appreciation. This will results to promote the company and the employees will be boost enough to work harder which creates competition which they can compete with the competitors
Payment basis is known as the methods used by the one making payments for services provided by hospitals or doctors. There are three payment determination bases. First, cost-payment basis is a method for determining fees for medical services, and is basically the underlying method for payment is the provider’s cost. The exact amount is determined and agreed upon by both the provider and the patient. For example, the healthcare provider’s cost for providing the service could be $2,000. The healthcare provider can then choose to charge 70% of the total charge, which comes out to be $1500. There are different levels that can be used in cost based reimbursement. On the macro basis, payment can be provided for a whole array of services. Contrarily, payments for specific items are on a micro basis. Critical access hospitals usually use macro level cost reimbursement. On the other hand, healthcare providers often use micro level cost reimbursement when charging for expensive medications, meaning that the price of those medications will be based differently than their usual services (Abbey, 2012).
Xu, M & Yu, W. (2003). Physician payment options: A policy discussion for New Brunswick. University of New Brunswick Department of Health and wellness.
...would result in non-recognition of compensation expense, thus misrepresenting the costs of operating the business. The accounting for the modification of the share-based payments provides feedback value to investors. By making the change in compensation expense, this alerts investors that there has been a modification to the terms of the share based payments. By alerting the investors of the change, this is telling investors that management believes the company will still be successful, however management wishes to induce employees to continue work hard to help raise the share price. Lastly, as the 12/31/06 journal entry shows, the offsetting debit is to additional paid in capital-share-based payments. The provides predictive value to investors because investors will know the amount of cash inflows to expect from future exercise of the share-based payment awards.
Buchbinder, S. B., & Shanks, N. A. (2007). Managing Costs and Revenues. In (Ed.), Introduction to Healthcare Management ( ed., p. pp. -). : . []. doi: Retrieved from
Offering employee benefits is one way a company must competes in today’s marketplace to retain old employees and attracts new ones. These benefit packages may range from offering basic health insurance to additional discretionary and perk benefits such as vacation and retirement packages. Benefit packages are often a large portion of employee costs and Federal mandates require an employer to carry and offer certain benefits even if they offer nothing else. Federally required employee benefits make up approximately a quarter of the costs associated with employer offered benefit packages. Some of these mandated benefits include Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act.
To begin, as of September 2010, companies have spent an average of approximately $19,000 per employee to provide discretionary benefits and these benefits account for as much as 30.5 percent of payroll costs. They are offered at the will of each company and employees often view them as entitlements. At the same time, while not recommended, employers reinforce the entitlement mentality by awarding employees regardless of their performance. Next, the three types of benefits include protection programs, paid time off, and services offered by the organization. Protection programs are an incentive to provide benefits for families, as well as promote health. In addition, the benefits guard employees against income loss caused by catastrophic events
This paper presents an interpretation of payment reimbursement systems in the health care industry. Managed care is a health care delivery system that is organized to manage quality and cost utilization. A comparative overview and description of payment compensation will be given in order to understand the flow of finances in the health care industry. The focus will be on the capitation and fee-for-service reimbursement systems. Readers will then be able to conclude that the appropriate reimbursement method is reliant on upon the amount of risk a party is able to assume.
...r investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
The organization is able to manage a high coverage of risks at relative low costs owing to the availability of highly skilled personnel in the company’s team of employees. This benefit also brings about another advantage of easing the financial burden of the organization (Johnson, 2016). Besides, effective employee benefit system offered by the organization could improve the general productivity. This benefit is attributed to the fact that employees tent to be more effective when they are given assurance of job security. In addition, workers become more productive when they and their families are given the desired security by the employer. The other benefit to the organization if it employs an effective compensation and benefits system entail benefits from premiums (Wayne, Shore, M., Bommer, & Tetrick, 2002). These premiums are typically tax deductibles as corporate expense. As such, a company that has an effective compensation and benefits system is likely save extra money for other
Compensation is the remuneration received by an employee in return for his/ her contribution to the organization. It is an organized practice involving the provision of monetary and non-monetary benefits to employees (citehr.com). Em¬ployee compensation includes all forms of pay and rewards received by employees for the performance of their jobs. Direct compensation comprises of employee wages and salaries, incentives, bonuses, and commissions. Indirect compensation comprises the many benefits supplied by employers, and nonfinancial compensation includes em¬ployee recognition programs, rewarding jobs, and flexible work hours to accommodate personal needs (www.indiana.edu/~busx420/Book.../chap09.doc).
A compensation package includes salary but also includes other non-salary benefits such as: health-care benefits, 401(k) plans, PTO (paid time off) and other perks. Businesses often utilize experienced Human Resources professionals to review, update and create salary scales and compensation packages for new hires. The total compensation package is often used as means of attracting employees who will complement the organization and should be consistently reviewed, acting as an incentive for retaining qualified staff. “Organizations that are not able to develop competitive pay scales along with strong compensation packages, face the risk of a competitor offering a more attractive package, which can result in employee turnover” (Dias, 2011, pg.
Reward systems have been evolving and growing throughout the years, but there are many types that have always been there. Base pay is the most common, which is an employee’s base wages and salary that they are paid on hourly, weekly, monthly, or annually (Luthans, 2011, p.94). Merit based pay is another type of incentive, which rewards and motivates an individual to perform their jobs to the standards of their employers. According to the text Organizational Behaviors, by Fred Luthans, there are three other options for paying an employee for their performance: individual incentives pay plans, using of bonuses, and the use of stock options. Individual based pay plans are based on the employees output and/or quality. Some organizations use bonuses as incentives to their employees. These are offered sometimes as op...
To accomplish these objectives, the Holland Enterprise will provide a compensation program that establishes and maintains competitive salary levels within the mark...