I’ve chosen the topic of employee benefits and the varying considerations given to benefits around the globe. What are the issues to be considered? What about the MNE employee? The content of this paper is a condensation (compacted by >70%) of current knowledge regarding the administration of employee benefits as published by McGraw-Hill 2011 in “The Handbook of Employee Benefits: Health and Group Benefits, 7th Edition. Jerry S. Rosenbloom, editor”. This is the reference textbook for the International Foundation of Employee Benefits Plans (IFEBP), and Wharton (University of Pennsylvania), for those looking to certify as “Certified Employee Benefits Specialists” (CEBS). The arguments in favor of employer sponsored benefits around the world …show more content…
In these countries, the amounts can be significant and are an important factor in supplemental plan design. As an example, in some Latin American countries, the statutory severance benefit can be as high as two months’ pay times years of service, where the definition of pay includes all components of compensation, including benefits in kind such as company cars, ancillary benefits, nonaccountable cash payments and expense accounts (representation allowances), and the like. For some positions, particularly in those countries where there is a confiscatory tax environment, the value of the benefits in kind can exceed 50 percent of base …show more content…
In some, most of the workforce may not be unionized, and those workers that are generally are concentrated in small, loosely organized local unions. In others, most of the country may belong to one union or another, as in Belgium, where more than 80 percent of the workforce is unionized—including white-collar or management employees. Unions may operate at the local or national level. Economic conditions: Economic conditions can be an influencing factor in the design of international benefit plans and can have a significant impact on plan costs. However, rarely will they dictate the final plan design. The more important factors are inflation and interest rates, but exchange-rate manipulation or currency controls can also have an impact—particularly in countries with high inflation. Normally, currencies appreciate or depreciate in line with inflation, but some countries (e.g., Mexico and Brazil) have previously manipulated exchange rates to further other economic goals. Local Benefit Plan Design: Local benefits should be determined for each country within the framework of the global policy, but this is not always possible. The employer must try to balance corporate policy against the local realities, which include the
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization.
The Human Resource topic that we selected is to analyze the benefit programs of four major airlines. Benefits are important to employees as well as their families, and can be a powerful recruiting tool. Benefits also play a major role in managerial decisions and wise benefit choices can have a long-term impact on the quality of life. Some characteristics of a sound benefits program are, they must have clear specific objectives, they must allow for employee input, they must be responsive to societal and environmental change, provide for flexibility, and there must be clear communication with employees. One of the main challenges that companies face are the overall costs of these benefit programs to the companies themselves, as well as staying competitive in hopes to attract high quality employees. Almost 40% or $14,678 per employee is spent on benefit programs per year.
“To make your company competitive and attractive to job candidates you have to offer an exceptional total benefits package” (Obringer, 2003, para.1). This is especially true in the current economic environment. The employee’s needs are changing so businesses are having to rethink their compensation and benefits packages. The home improvement industry is no exception to this phenomenon. Companies like Ace Hardware, Lowes Home Improvement, and The Home Depot have had to adapt their benefits packages to stay competitive in an industry with an ever-changing employee demographic. The following pages will include a comparison of all the benefits offered by Ace Hardware, Lowes Home Improvement, and The Home Depot, as well as, a glimpse into whether or not their strategies seem to have been successful. The majority of the benefits are available to all employees, but some of them are only available to corporate team members. To make sure that all of the available benefits are covered and for comparisons sake, the focus of this report will be on the corporate level of benefits. Also due to the wide salary ranges between low level employees and corporate employees, this report will not focus on salaries.
The Director of the Human Resources received complaints from several managers and the Senior Manager in Payroll. The complaint was regarding Personnel Actions being processed late in the Human Resources Information Center (HRIC). The Director was urged by the leadership to put the pressure on the on the team who processed these actions, since it was causing issues across the organization. With the knowledge of these concerns, he recognized it was necessary for him to determine why the Personnel Actions were being delayed and causing the issues brought about by the various levels of management.
Report 2: Issues in Employment (Chapter 9). The relationship between employees and employers is often confusing and blurry. Who has the upper hand? Who is in control of the e-mail?
Unions serve many purposes; some people love them and some people hate them. According to (What is a Union?, 2011), “A union is an organized group of workers who
Health insurance is very important in life. It is for this reason that insurance companies have designed different types of insurance as a strategy to provide services to all categories of people. Before purchasing insurance for an organization, there are considerations that should be put in place in deciding the best insurance for the employees. One of the most important factors is the number of employees. The mode of employment also matters, such as whether employees are full time or part time.
Trends in time off with pay can vary from public (i.e. not for profit) and private (i.e. for profit) sector organizations. Usually public sector employees are governed by benefits that separate vacation, sick, personal days, jury duty, funeral leave etcetera. Private sector employers primarily utilize Paid Time Off (PTO) that lump all of the instances of needing time off in a time bank that each employee is responsible for maintaining. Time off with pay is a topic that is regularly evaluated throughout organizations today. In this paper I will be discussing the paid time off benefits that are offered to public employees.
Holland Enterprises is on a new strategic direction, to attract and retain the most talented employees and to reduce turn over. Human resource department has came up with a new compensation plan. In the propose compensation and benefits system plan , I will explain a new compensation plan for Holland Enterprises, also I will explain the components of the compensation and benefit system plan in order to attract and motivate employees to be productive . In order for the compensation and benefits system plan to be operational, the package should include a necessary level of compensations to fulfill basic needs, equity with the external labor market, equity within the organization (Henderson, 2006).
Employee benefits coordinator play a significant role in Human Resource Management. Employee Benefits coordinators are responsible for assisting with employee benefits, maintaining employee data base, managing all insurance billings and maintain employee files, sick pay, vacation and retirement. This study explores the importance of employee benefits to corporations, government agencies and non profit organizations. This paper also researches the effects on the management team and on individual employees’.
Schliwen, A., Earle, A., Hayes, J. and Heymann, S., 2011. The administration and financing of paid sick leave. International Labour Review, 150 (1-2), pp. 43-62.
...evel is inclined to encourage disabled employees to return to work. Another potential problem is that agencies must deal only with the one authorized "insurer." In most private insurance markets, the amount of prevention services is used as a device to attract and retain customers. It is not clear whether the Office of Workers 'Compensation Programs has any incentive to offer these key services. Occupational health and safety is as important a regulatory issue today as it was in the early 20th century, when it was at the vanguard of government intervention in the labor market. We should clearly be using all available devices for improving the operation of the labor market. Because employees will be compensated for their occupational injuries, it is necessary to take full advantage of the financing of that compensation system in order to create incentives for prevention. The financing arrangements now in use are quite strong, but reinforcing prevention incentives has never been viewed as their primary purpose. Recognition of this preventive incentive role and attention to its improvement will serve to improve the occupational health and safety of American workers.
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay
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