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
Commonly associated with pay for employees, benefits is the second biggest obstacle for management. Like Volkswagen starts employees off at the basic pay the unions would achieve, a similar benefits program should be implemented (Greenhouse, 2014). The passing of the Affordable Health Care Act has made it possible for many citizens to receive coverage but it is basic at best. GMFC should create a plan based off of the Health Care Act and unionized plans and allow for extras to be added on. This allows for employees to pick the benefits package that works best for them.
Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization.
The author explain that most individuals look forward to a guaranteed paycheck, medical benefits, work compensation, fringe
Labor unions are groups or clubs of workers and employees who bond together to get good conditions, fair pay, and fair hours for their labor. These unions are usually joined together, and most unions in America are some branch of the largest labor union organization in the United States, the AFL-CIO with thirteen million members.
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.
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.
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
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.
The succeeding paragraphs will explain how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. In order to maintain their competitive edge, companies need to fully understand that as the needs of their employee’s change, so does their benefit plans. Companies need to find innovative ways of engaging employees that encourage and support their commitment and improve their performance.
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’.
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
Examine a significant way that the Joint Commission has influenced the basic functions of HRM and predict the likely impact of the policies and procedures at the your acute hospital. Provide support for your rationale.
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
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).
The main purpose of Human Resource Management is to increase the effectiveness and contribution of employee’s attainment of organizational goals and objective (Youssef, C.). Many areas of HRM have been discussed in this course. Those areas are EEO and Affirmative action, Human resource planning, recruitment, and selection, Human resource development, compensation and benefits, safety and health, and employee and labor relations. All these categories have an impact on how an organization is managed. Although there are many things that impact a business, the most important thing about managing a business is selecting the right people to help the company succeed.