Post on 04-Jun-2018
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Employee
Benefits & Services
PREPARED BY:
Siti Noor Hairunisa Binti Khairudin
(2013641344)
PREPARED FOR:
Assoc Prof Dr Roshidi Hassan
HRM 730
HUMAN RESOURCE
MANAGEMENT
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Definition
Employer-provided rewards and services, other than wages or
salaries, arising from the following categories:
Legally required social insurance payments, private insurance and
retirements plans; payment for time not worked; extra cash
payments other than bonuses based on performance; and costs of
services. (Ivancevich & Konopaske)
Employee benefits as including benefits plans for employees
that arise from the following categories of employer paymentor cost:
Legally required social insurance payments, payment for
private insurance and retirement plans, payment for time not
worked, extra cash payment to employees, cost of services to
employee (T. Beam & McFadden, 1985)
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Definition
Employee benefits are a part of almost every employees total
compensationthat is, all forms of financial returns and
tangible services and benefits employee receive as part of an
employment relationship (Rosenbloom, 2011)
Employee benefits are non-cash provisions within the pay and
benefits package, although they have a financial value or cost
for employersfor example, paid holidays, pensions and
company cars. (CIPD, 2013)
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Definition
Employee benefits and services generally defined as in-kind
(noncash) payment to employees for their membership or
participation in the organization (Jackson, Schuler & Werner, 2009)
Employee benefits and services are indirect financial compensation
provide for employee in the cost of employer as in returns of
employee participation.
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People come here for the benefits, and they
stay for them. Turnover is very expensive,
and our benefits keeps our rate down(BRADLEY HONEYCUT, Director of Compensation and Benefits, Starbucks)
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Objectives of Benefit
Programs
To Improve Morale
To Meet Health and Safety Needs
To Attract Good Employees
To Reduce Turnover
To Reduce Unionism
To Maintain a Competitive Position
To Enhance the Organization's Image
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Type of Employee Benefits
Mandated (legally required) benefits mandated by the following laws the Social Security
Act of 1935
provide protection programs to employees and their
dependents.
Voluntary (discretionary) benefits Companies can choose to offer a wide variety of
benefits to employees 3 role: protection programs, paid time-off, and
accommodation and enhancements
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MandatedBenefits
Programs
UnemployedInsurance
Social SecurityWorkers
Compensation
Social Security Act of
1935
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Mandated Benefit Program
Type of benefits Details
Unemployed Insurance Objective:
To provide periodic cash income to workers
during short period involuntary unemployment
To help the unemployed find jobs
To encourage employers to stabilize employmentTo stabilize the labor supply
Social Security The goal to provide income to retired people to
supplement savings, private pension and part-
time work.
Adequate payment for allIndividual equity
Workers Compensation Employee who incur expenses as a result of job-
related illness or accidents receive a degree of
financial protection.
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Voluntary Benefits
Compensation for
time of
Paid holiday
Paid vacation
International vacation
benefits
Personal time off
Sick leave
Family leave
Maternity & parental
leave
Health insurance
Life insurance
Disability income
replacement insurance
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Pay for Time Not Worked
Vacations and holidays Number of paid vacation days varies by employer.
Number of holidays varies by employer.
Premium pay for work on holidays.
Sick leave
Provides pay to an employee when he or she is out of workbecause of illness.
Costs for misuse of sick leave
Pooled paid leave plans
Parental leave
The Family Medical Leave Act of 1993 (FMLA) Up to 12 weeks of unpaid leave within a one-year period
Employees must take unused paid leave first.
Employees on leave retain their health benefits.
Employees have the right to return to their job or equivalent position.
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Health Care
Hospitalization, health, and disability
insurance
Provide for loss of income protection and group-
rate coverage of basic and major medical
expenses for off-the-job accidents and illnesses.
Accidental death and dismemberment
Disability insurance
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Health maintenance organization (HMO)
A medical organization consisting of specialists
operating out of a community-based health care
center.
Provides routine medical services to employees who pay
a nominal fee.
Receives a fixed annual contract fee per employee fromthe employer (or employer and employee), regardless of
whether it provides that person with service.
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Preferred provider organizations (PPOs)
Groups of health care providers that contract toprovide medical care services at reduced fees.
Employees can select from a list of preferred individualhealth providers.
Preferred providers agree to discount services and tosubmit to certain utilization controls, such as on the
number of diagnostic tests they can order.
Employees using non-PPO-listed providers may pay allof the service costs or the portion of the costs abovethe reduced fee structure for services.
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Income in retirement
Retirement income from Saving & works
Individual Retirement Accounts (IRAs) SEP (Simplified Employee Pension) IRAs
401(k) Plans
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401(k) PlansDefined contribution plans based on section
401(k) of the Internal Revenue Code.
Plans are funded by pretax payroll deductions. Contributions are invested in mutual stock funds
and bond funds.
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Employee Retirement Income Security Act(ERISA) of 1974
Restricts what companies must do in regard to
pension plans. In unionized companies, the union
can participate in pension plan administration.
Pension Benefits Guarantee Corporation (PBGC)
Insures pensions of a qualified plan that terminates
without sufficient funds to its meet obligations.
Guarantees only defined benefit plans, not defined
contribution plans.
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Types of pension plans Defined contribution: contributions of employees
and employers are specified; plan payouts are not.
Defined benefit plans: plan payouts are specified;however, contributions must be sufficient to
insure payouts.
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Flexible Benefits Plans
& reimbursement accounts
Allow employee to choose between two or
more types of benefits.
Health care, life insurance, and retirement
Provide funds from which employees pay for
expenses not covered by the regular benefit
package.
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We have to be willing to make the
commitment to focus on different work and
life opportunities for our workforce(SHARON ALLEN, Board Chairman, Delloitte LLP)
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Managing Effective
Benefit Program
1) Set Objectives & Strategy forBenefits
2) Involve Participants and Unions
3) Communicate Benefits
4) Monitor Costs Closely
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Company best practice ofEmployee Benefits &
Services
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The cost is so small in comparison with the lift
we get in employee morale(JEFF WEISS, Senior Vice President of Benefits Programs, USAA)
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SHELLCare Benefits Details
Medical:
1.Hospital Surgical Medical (HSM) Option
2. Alternate medical options may be
available depending upon work location
Nationwide medical coverage
Prescription drug coverage available at
nominal copays
Health and Wellness education,
resources and tools, including personal
health coaches
Dental:
1. Dental PPO Option
2. Dental Managed Care Option
Free to choose any dental provider
Vision Annual comprehensive eye exam, and
either lenses/frames or contact lens
allowance
Flexible Spending account(s)
Health Care Account
Dependent Care Account
Eligible expenses include out of pocket
medical, dental, and vision
expenses
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SHELL
Protection Benefits DetailsDisability Income
Non-Occupational Disability
Income Protection Insurance
Company paid salary continuation based on
your length of service (available after one year
of service)
Optional employee-paid program that provides
income if your pay reduces or stops because of
a non-occupational disability
Survivor Income (Life Insurance)
Company Survivor Benefit
Group Life Insurance
Company Occupational Accident
and Business Travel InsuranceVoluntary Personal Accident
Insurance
Life insurance benefit of 2 times base pay in
the event of death
Additional coverage
Benefits in the event you are in an accident or
death while at workAdditional accident protection coverage
Other Protection Plans
Group Auto and Home Insurance
Group Legal Plan
Insurance at a discounted group rate
Prepaid legal assistance for personal matters
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SHELLBalance Benefits
Alternative Work Schedules
Flexible Work Schedules
FlexTime Policies
Teleworking
Dependent Care Reduced Workweek
Flexible start/finish times
Work from home either on a regular basis
or as needed
Reduced hour workweeks to care for
dependents for a period of up to 6 months
Time Away From Work
Holidays
Vacation
Vacation Purchase (Regular Part
-Time Employees are not eligible)
Up to 10 paid holidays per year
Allowing added flexibility for your
vacation time
Work And Family Programs
Adoption Assistance
Backup Care
Employee Assistance Program
Employee Clubs
Wellness Reimbursement
Provides temporary emergency care for
employees dependents and their elders
Employee will have up to 80 hours of
subsidized care available each year
Participation in approved fitness and
nutritional activities
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SH LLLearning Benefits Details
Development and Learning
Company-provided Training
Educational Reimbursement
Access to thousands of high-quality
learning solutions on SkillSoft
Reimbursement of tuition, registration,
lab, books, and other required fees for
approved work-related coursesThe Learning Account Active Employees and Retired Employees
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SHELL
Wealth Benefit Details
Shell Pension Plan
Alternate Pension Formula (APF)
You will be 100% vested in your pension
after 3 years of service
Savings Plan
Pre-Tax Employee Contributions
After Tax Employee ContributionEmployer Contribution
Shell will contribute a percentage of
your compensation based on your years
of service
Employee Share Purchase Plan Purchase shares of Company stock at a
15% discount.
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PriceWaterhouseCoopers
(PWC)Benefit Details
Holiday Ten paid holidays each year
Vacation time Full-time staff (other than management level) accrue 15
workdays per year; after two years of service, full time staff
accrue 22 workdays per year
Health care coverage Flexibility to access both network and non-network doctors
and facilities
Prescription drug benefits and physical exams are available
Vision care coverage- eyeglasses and lenses
Dental plan covers services ranging from diagnostic
Health care anddependent care flexible
spending accounts
$2,500 per year tax free to the health care account and up to$5,000 per year tax free to the
dependent care account
Family and personal sick
days
Continue receiving your full salary when absent from work for
five or fewer consecutive days due to reason absent
Nursing Moms' Program Educational materials and pre/post-birth counseling
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PriceWaterhouseCoopers
(PWC)Benefits Details
Parental leave of absence Eligible primary care parents with three months of
service can use six weeks of paid parental leave (or
eight weeks for
multiple birth/adoption)
International SOS program Related travel aid service assists staff who aretraveling internationally on firm business or who are
living and working overseas.
Emergency backup childcare centers Access to backup childcare centers is available in
various cities throughout the country.
Well-Being Rewards Program Offers financial incentives for engaging in a widerange of healthy and responsible behaviors and
activities
Professional development and
affiliations
The Educational Support Plan
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PriceWaterhouseCoopers
(PWC)Benefits Details
Life and accident insurance Accidental Death and Dismemberment
(AD&D) Insurance
May purchase Supplemental Life
Insurance for yourself
Wells Fargo mortgage program Help to finance
Property and casualty insurance program Purchase group auto, home, boat, renters,
condo, motorcycle, motor home
insurance
Retirement and savings plans Eligible date of hire
Disability coverage Receive STD benefits equivalent to 60% to
100% of your salary
Specialty benefits of
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Specialty benefits of
the company
Company Benefits
Shell Time away from work (holiday)
PriceWatehouseCooper Wells Fargo Mortgage ProgramNursing Mom Program
Toyota Work Life/ flex time
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The End