HRM 730 HUMAN RESOURCE MANAGEMENT

Employee Benefits & Services

PREPARED BY: Siti Noor Hairunisa Binti Khairudin
(2013641344)

PREPARED FOR: Assoc Prof Dr Roshidi Hassan

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 payment or 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)

Definition
Employee benefits are a part of almost every employees total compensation that 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 employers for example, paid holidays, pensions and company cars. (CIPD, 2013)

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.

 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)

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

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

Unemployed Insurance

Workers Compensation

Mandated Benefits Programs

Social Security
Social Security Act of 1935

Mandated Benefit Program

Type of benefits Unemployed Insurance Details Objective: To provide periodic cash income to workers during short period involuntary unemployment To help the unemployed find jobs To encourage employers to stabilize employment To stabilize the labor supply The goal to provide income to retired people to supplement savings, private pension and parttime work. Adequate payment for all Individual equity Employee who incur expenses as a result of jobrelated illness or accidents receive a degree of financial protection.

Social Security

Workers Compensation

Voluntary Benefits
Sick leave Family leave Maternity & parental leave Health insurance Life insurance Disability income replacement insurance

Compensation for

time of Paid holiday Paid vacation International vacation benefits Personal time off

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 work because 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.

Health Care
Hospitalization, health, and disability insurance
Provide for loss of income protection and grouprate coverage of basic and major medical expenses for off-the-job accidents and illnesses.
Accidental death and dismemberment Disability insurance

 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 from the employer (or employer and employee), regardless of whether it provides that person with service.

 Preferred provider organizations (PPOs)

Groups of health care providers that contract to provide medical care services at reduced fees.
Employees can select from a list of preferred individual health providers. Preferred providers agree to discount services and to submit to certain utilization controls, such as on the number of diagnostic tests they can order. Employees using non-PPO-listed providers may pay all of the service costs or the portion of the costs above the reduced fee structure for services.

Income in retirement
Retirement income from Saving & works Individual Retirement Accounts (IRAs) SEP (Simplified Employee Pension) IRAs 401(k) Plans

401(k) Plans Defined 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.

 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.

 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.

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.

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)

Managing Effective Benefit Program

1) Set Objectives & Strategy for Benefits 2) Involve Participants and Unions

3) Communicate Benefits

4) Monitor Costs Closely

Company best practice of Employee Benefits & Services

The cost is so small in comparison with the lift we get in employee morale
(JEFF WEISS, Senior Vice President of Benefits Programs, USAA)

SHELL
Care Benefits Medical: 1.Hospital Surgical Medical (HSM) Option 2. Alternate medical options may be available depending upon work location Details Nationwide medical coverage Prescription drug coverage available at nominal copays Health and Wellness education, resources and tools, including personal health coaches Free to choose any dental provider

Dental: 1. Dental PPO Option 2. Dental Managed Care Option Vision

Annual comprehensive eye exam, and either lenses/frames or contact lens allowance Eligible expenses include out of pocket medical, dental, and vision expenses

Flexible Spending account(s) Health Care Account Dependent Care Account

SHELL
Protection Benefits Disability Income Non-Occupational Disability Income Protection Insurance Details 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 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 work Additional accident protection coverage

Survivor Income (Life Insurance) Company Survivor Benefit Group Life Insurance Company Occupational Accident and Business Travel Insurance Voluntary Personal Accident Insurance

Other Protection Plans Group Auto and Home Insurance Group Legal Plan

Insurance at a discounted group rate Prepaid legal assistance for personal matters

SHELL
Balance 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)
Work And Family Programs Adoption Assistance Backup Care Employee Assistance Program Employee Clubs Wellness Reimbursement

Up to 10 paid holidays per year Allowing added flexibility for your vacation time

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

SHELL
Learning Benefits Development and Learning Company-provided Training Educational Reimbursement Details Access to thousands of high-quality learning solutions on SkillSoft Reimbursement of tuition, registration, lab, books, and other required fees for approved work-related courses Active Employees and Retired Employees

The Learning Account

SHELL
Wealth Benefit Shell Pension Plan Alternate Pension Formula (APF) Savings Plan Pre-Tax Employee Contributions After Tax Employee Contribution Employer Contribution Employee Share Purchase Plan Details You will be 100% vested in your pension after 3 years of service Shell will contribute a percentage of your compensation based on your years of service Purchase shares of Company stock at a 15% discount.

PriceWaterhouseCoopers (PWC)
Benefit Holiday Vacation time Details Ten paid holidays each year 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 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 $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 Continue receiving your full salary when absent from work for five or fewer consecutive days due to reason absent Educational materials and pre/post-birth counseling

Health care coverage

Health care and dependent care flexible spending accounts Family and personal sick days Nursing Moms' Program

PriceWaterhouseCoopers (PWC)
Benefits Parental leave of absence Details Eligible primary care parents with three months of service can use six weeks of paid parental leave (or eight weeks for multiple birth/adoption) Related travel aid service assists staff who are traveling internationally on firm business or who are living and working overseas. Access to backup childcare centers is available in various cities throughout the country. Offers financial incentives for engaging in a wide range of healthy and responsible behaviors and activities The Educational Support Plan

International SOS program

Emergency backup childcare centers Well-Being Rewards Program

Professional development and affiliations

PriceWaterhouseCoopers (PWC)
Benefits Life and accident insurance Details Accidental Death and Dismemberment (AD&D) Insurance May purchase Supplemental Life Insurance for yourself Help to finance Purchase group auto, home, boat, renters, condo, motorcycle, motor home insurance

Wells Fargo mortgage program Property and casualty insurance program

Retirement and savings plans Disability coverage

Eligible date of hire Receive STD benefits equivalent to 60% to 100% of your salary

Specialty benefits of the company

Company
Shell PriceWatehouseCooper Toyota Benefits Time away from work (holiday) Wells Fargo Mortgage Program Nursing Mom Program Work Life/ flex time

The End