1. It is good that MMC has many benefit programs such as Shot-term Disability, Long-term Disability, Health Care, Retirement and Life Insurance. Most of the benefits programs are paid by company, which can highly motivate employees to have good work performance. Furthermore, employees have chance to decide to pay or not pay for those optional term insurance. This makes employees feel satisfied because they don’t have to pay for benefits programs that they think are unnecessary to them. As I notice, fifty percentages of employees in MMC are over 46 years old. Providing such flexible benefit programs make them think the company is good and can retain them. Employees who are over 46 years old have sufficient knowledge about benefits programs in …show more content…
Since DC plan is becoming more and more attractive to employees nowadays, it might be a good change that changes the DB plan to DC plan. Second, the costs of all of the programs are pretty high. It is extremely important that HR should know how to reduce some of the costs. For example, HR can hold some benefits programs like encouraging employees to take exercise, stop smoking and keeping fits. These programs can make employees feel satisfied about the company but also solve the health problem at the very first beginning. If HR professionals don’t encourage employees to do exercise, they might ignore their health problems which might induce large amount of costs of the company. Third, after combing the benefit programs of two companies, we can see the benefit programs become more powerful because they fully provide various programs employees need. If two companies can learn from each other’s benefit programs, their programs will be more sophisticated and productive. However, there are three risks. First, both MMC and OY pay for the benefit programs, which might be a huge burden of the company. Company can make coinsurance and copay become higher to reduce their burden. Second, Short-term Disability plan in both companies are really high. MMC and OY can reduce the benefits provided to employees which will encourage employees to go back to work. Third, both companies can provide some other benefit programs to reduce …show more content…
If the OY employees were to become covered by the MMC benefit program, there will have three challenges. First, OY provides Executive Physical Exams, however, MMC doesn’t. This might induce dissatisfaction of employees who need Executive Physical Exams. Second, OY is a small company with 300 employees; however, MMC have 1600 employees. If OY employees were covered by the MMC benefit program, they might feel discontent because they have to pay more at new benefit program. Furthermore, the benefit program in OY is desired to service employees in OY, if it covered by the MMC benefit program, OY employees might feel it doesn’t make sense. Third, The retirement requirement in MMC is vesting 100% after five years. However, 80% of employees work in OY 1 to five years. OY employees might feel discontent about the new benefit because they cannot get full vesting. There are also three opportunities. First, MMC provides Business Travel Accident to employees but OY doesn’t. OY employees might feel happy because they get the Business Travel Accident benefit. Second, the Medical Plan – In Hospital of MMC stipulate the cost the employees might provide. However, OY has no limitation on benefits paid which means employees might have to pay high costs. If OY is covered by MMC’s benefit program, this risk can be solved. Third, MMC require employees to work longer to have full benefits. If OY employees are covered by its plan, they might be motivated to stay in the company longer to receive
Memorial Sloan Kettering Cancer Center (MSKCC) has impacted the world nationally and internationally for their involvement and work with cancer, science, research, and medicine. A goal of Memorial Sloan Kettering Cancer Center (MSKCC) is through extensive research and training explore new ways to treat, cure, and control cancer on a national and worldwide level. Scientist and Researchers affiliated with MSKCC take their knowledge, investigation, and research to create clinical trials, studies and new treatments for cancer nationally and worldwide which create various economic opportunities throughout the nation and world.
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.
YakkaTech Corp. is growing IT services firm which mainly installs and upgrades enterprise software systems and related hardware. They have grown and consolidated as well as become more efficient at their business but this isn’t without growing pains. Their employees seem to lack job satisfaction and their customers feel that the employees “seem indifferent to their problems.” The company’s voluntary quit rates have risen above the industry average while management raises pay rates in the hopes that customer service quality and productivity would improve. However, customer service complaints and productivity remain low and employee moral seems to be low as well.
“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 cost and administrative burden of providing health care benefits to employees has grown rapidly in the last several years, and organizations have opted to cheaper means of doing this by resorting to CDHPs programs that are little bit cheaper when using deductible health insurance plans. This has led to the hope of healthier generation in the near future as the cost of health services would be manageable (Buntin, Damberg, Haviland & Kapur, 2006).
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
...mind and spirit, while creating a more productive employee for them and adding to their profit. The bottom line is that corporate wellness programs work and create fiscal fitness for all to share in.
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.
We can see that piecework is a direct indicator of the employees output. In addition, the year end bonus is linked with the profit the company earns. The guaranteed employment provides employees the base line for their life, so they don’t have to be worried about getting fired or searching for other jobs, which makes them more concentrated on their jobs. From the combination of these three components, employees can have confidence to work and to understand that their performance will be measured properly.
A fair and equitable compensation plans should factor in what employees perceive as valuable based on each employee particular situation. Such rewards should provide a balance of intrinsic and extrinsic benefits. Perks and benefits can make or break a company's ability to attract and retain workers in any industry and not just the fast food industry. Providing benefits such as health insurance benefits such as paid holidays and paid vacation time, will show employees that they are valued team member of the company.
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.
...rganization until the age of the 60 years old and it will showed the the better of the retirement age plan that affect from career advancement resulted from the high performance work system.
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