Benefits

Attractive benefits companies offer makes a significant difference when candidates chose where to work. It has a large impact on how the candidate connects with the company, resulting in better performance and retention. Those benefits can be the length of paid vacation, health insurance, bonuses, maternity leave, retirement plan, and others. Those benefits lead candidates to find a balance between professional and personal life with their life goals. The downside of offering benefits might the cost for the companies and not a guarantee of retention or performance, so they are not mandatory and a lot of companies do not have a lot of them. Not offering them makes them less attractive reducing the chances of having the best candidates.
When companies find also the balance between attractive and having a fair cost, they end having less turnover and having better results for the company and also saving money with firing and hiring someone new. I have worked for a company back in my country, that for 20 years have won the award “best companies to work” in the first place. I remember when I first started as an intern, I had most of the benefits as an employee which made me feel like anyone else in the company. I also had food benefits, having a good amount of money to spend on lunch every day, and also to buy groceries, the same with transportation based on the cost of my commute. These benefits are mandatory in Brazil, but the amount would differ, Caterpillar used to pay above the average. Health insurance is also mandatory and I used to have a great one.
On top of the mandatory ones, I had a bonus based on performance throughout the year and also for specific projects. Also, has 30 days of paid vacations, a birthday day off, retirement plan – I would choose an amount of my salary that would go towards it. For an employee, they would also allow the employee to have an MBA leave, and depending on the position they would pay for it as well. And the list goes beyond for higher positions. Also, the salary was above the average.
The company had so many great benefits that the retention percentage was very high, they were known for having employees work there their entire life. It was common to meet someone who has had only worked at Caterpillar. Every decade working there they provide a reward as a way to demonstrate appreciation for the employee making them feel like it is worth working there, They do offer a very appealing benefits package.
Caterpillar is a solid company on the market, with an international operation and it is a “wealthy” company which is not the case for smaller companies and startups that might not be able to offer all these much. However, offering less but strategic benefits are still very important to make the companies competitive and attractive. For me, it has a lot of weight on my decision on working for the company. I need to count on them to be able to fit my life decision in my professional life. For example, a fair time of maternity leave is extremely important, it does not matter higher salaries if I will not be able to have maternity leave or that when I come back I will be fired. Also, I can raise a child without a job. So, benefits go beyond the benefit itself, it provides certain security that is important for everyone. Also, it says a lot about the company culture. I believe that is a lot of companies that don’t offer them but reward in money which is also attractive to a lot of people, but they probably have a lot of turnovers and high cost from it.
Research from Harvard Business Review shows that providing the right mix of benefits that are both inexpensive and highly sought by candidates can give a competitive edge to a business that can not afford high salaries and pricier job perks.

Nadya Dunkley

November 8, 2020

BUS311 [1200]

Prof. Buckler

Unit 9 Benefits & Services

Employers are using discretionary benefits such as educational assistance, wellness programs, childcare assistance, retirements savings, and employee assistance to name a few. These are voluntary benefits that employers are not obligated to provide. Organizations use these nontraditional benefits to attract and retain valuable employees. These benefits are used to boost employee morale, productivity, and retention. Bonuses, wage increases, and merit-based incentives, are also forms of voluntary benefits. These benefits are given based on employee reviews and  by achieving job specific and project goals that tore apart of work criteria. In organizations top managers receive the highest portion of bonuses and 3 % of compensation paid to U.S. workers are bonuses. I think this is unfair because a lot of times lower level workers are the real reason why organizations achieve their goals. At my job we receive a maximum of $3 additional dollars added to our hourly rate if we achieve or daily sales goal. If we meet the goal, we get an additional $1, if we exceed the goal by 10%, we get $2 extra, and 20 % gives us the maximum additional $3. The saddest part of this is that the entire team receives the bonus, and the managers receive a larger portion. Everyone does not put in the same amount of work, so it is not fair for everyone to receive the same bonus or a bonus at all. This might be a great motivational tool for some organizations but from my experience it does not work for all. Another voluntary benefit is childcare assistance because childcare can be a major challenge for working parents especially for working moms. In the lesson we learned that I 1991 economist confirmed that over 1 million young mothers were out of the labor force due to childcare complications and expenses. Studies also show that low income mothers suffer the most by having to spend more than 26% of their paycheck on childcare. I know this a little bit too well because I am one of those mothers. I was not able to work many full-time jobs until my daughters were school aged and even, so I had to make sure that my schedule accommodated their school schedule. There are many times that I had to resign jobs and have even been fired for childcare issues. As my children got older I’ve been able to sustain continuous employment where I’m able to grow without worrying about picking up, dropping off, or having money to pay my bills and get back to work after I paid for childcare. To me this is one of the greatest voluntary benefits that organizations can offer. When parents have the option to receive assistance in childcare that can focus on their jobs without the distraction of childcare concerns. When employees work for organizations that provide benefits to supplement the needs of their family it encourages workers to grow with the company and invest more of themselves into their roles. This is also an important way to attract quality talent because people will want to come on board to a team where their needs are being met in more places than one. Employees will also be better vested in the organizations that they work for, more encouraged to do a great job and put back into a company that is putting into them. If I had the opportunity to work for a company that offered benefits that met my financial needs, and demands outside of work but paid a less than an organization that paid more but had less benefits I would probably conceded. It is as if the company is budgeting for you by allocating funds exactly where they would need to be. This would only work for me if the work culture and environment is somewhere that I fit in otherwise Id probably have other things to worry about like my emotional health. The childcare benefit as well as other voluntary benefits still has economic value. Though employers are not required to provide childcare benefits I believe that it would give any organization a competitive edge not only to sustain valuable employees, but they would also receive tax credits from the government. This is very important for the health and sustenance of the American economy especially today because more women are entering and enterprising withing the workforce. Childcare assistance in more organizations would help to lower the unemployment rate and take the American economy a bit closer to full unemployment. However, according to the lesson data collected in 2008 have shown that employers nationwide are reducing the number of voluntary benefits available to their workers. Economist and organizations ought to investigate the effects of the decline in companies offering these discretionary benefits because company turnover rates might be negatively affected, and the unemployment rates might also increase because of this. In the lesson one of the company case studies was Google who was named the best company to work for in America by fortune magazine. One thing that stood out to me is that the company studies everything it does, and they have a strong focus on analytics making their Human Resource Management approach scientific. This is how they can come up with the best discretionary benefits such as the video in the lecture says that what they do on the product side is exactly what they do on the people side. They even have a nap pod where employees could take a 5-15-minute power nap will give an employee enough of a boost to do their jobs if they are feeling tired. This was a very attractive company to me someone who is always tired at work especially if I’m scheduled a “CLOPEN” shift which is when an employee in retail is scheduled to close the store and the open the store the following morning. I find this to be ridiculous and have always wondered how the scheduling manager expect employees to function properly when they did not get enough sleep. When I work these shifts, I have headaches in the morning, and I’m am very irritable which isn’t good for business because I have to work with clients. This ultimately means that I end up working under pressure because I respect my role and always strive to do my best even though in my mind I’m tired and angry and keep telling myself that I can’t wait to find another job. Research says that some of these benefits pay off in the long run while some of them do not. The employees of an organization need compensation and benefit that provide a solution to their individual pain points not just what their employer assume will be a benefit to them the benefit need to indeed be beneficial.

When most people think of employee benefits, people tend to think of monetary value, such as compensation. Thankfully in the year, 2020 businesses offer so much more than just a paycheck. Companies now provide other benefits such as health insurance, cost of living adjustments (COLA), stock options, and tuition reimbursement, to name a few. Depending on where you are working, for example, a big city such as New York City or a small suburban town, the cost of living is different. It cost more to live in a big city versus a small town, so a company may offer a higher salary to those that work and reside in the city than in a small town; this is called a cost of living adjustment. Another benefit is the tuition reimbursement; more and more companies are promoting higher education and are willing to assist their employees by offering them cash back for paying for their tuition. Something to note to receive tuition reimbursement, your degree, or trade must be beneficial to the job. If I had to choose a benefit that is important to me, I would choose paid time off and sick leave. As a mother of a 7-year-old daughter, I find myself having to call out of work or take a day off due to doctor’s appointments, school closing, and sickness, so it’s important to me that I work with a company that doesn’t scrutinize you for needing to take the day off. Also, I’m unwilling to sacrifice my paycheck to increase my benefits, so the money matters a little more to me. Companies have concluded that employees are looking for a full benefits package. That is what reels and new employees and keeps them loyal to the company. If another company offers a better benefits package, an employee might leave for the better benefits package. Google is a company that provides one of the best benefits packages by catering to their employees. Google offers free meals for breakfast, lunch, and dinner (if you work a late shift). They also allow you to bring your pets to work. In San Francisco, there is a google bus that takes you to and from work daily. Google offers a generous maternity leave for mothers, which last for 18 weeks and six weeks for the dads. Also, Google gives massage credits as their way of saying a good job or job well done. What stood out to me the most about Google benefit package is that Google prefers that an employee have time to work on their passion. They have an 80/20 rule that an employee spends 80%of their time working and the other 20% pursuing things that make them happy. Another benefit that stood out to me from Google is their death benefits. Google offers an employee’s spouse stock and life insurance immediately; also, the spouse continues to receive half of the deceased employer’s salary for ten years and $1000 a month for any children left behind. Google is an excellent example of how a company should appreciate and value its employees. In return, the employee will be much happier working for the company and will like to have longevity in the workplace.

Tyler Johnson                                                                                    November 8, 2020

 BUS311 – 1900                                                                                    Prof. Brielle Buckler

Assignment 9 – Benefits

For this assignment, I interviewed two of my friends: Rebecca and Nicole.

Rebecca’s Interview

Q:             Where do you work, when did you start, and what made you want to work there?

A:            “I work at a postgraduate center for mental health as a program director. I began working there in March of 2020. I only began working there because the agency that I was previously working for was closing down.”

Q:             What benefits do you receive at your job?

A:            “I receive medical insurance, partial dental insurance, an unmatched 403(b), and free counseling services.”

 Q: Which of your benefits is most favorable to you?

A:            “The medical insurance is most favorable to me because I have a lot of medical issues and I am not sure that I would be able to pay for proper quality medical treatment if not for my job insurance.”

 Q: Are you satisfied with your current job benefits? If not, what would you change or add?

A:            “No, I am not completely satisfied with my benefits. First, I would add FULL dental and vision. Paying out-of-pocket for these things becomes tiresome. I would also make them match my 403(b). Furthermore, I would add tuition reimbursement. Upward mobility in this field relies on continued education. The salaries that they pay us don’t allow us to pay bills, take care of ourselves, and obtain further education. There’s always a sacrifice. Finally, I would add commuter benefits.”

Nicole’s Interview

Q: Where do you work, when did you start, and what made you want to work there?

A:            “I work at NYC Parks. I started working there in October 2013. At the time of my hiring, I had a goal of working somewhere that would help me contribute to the concept of social well-being. I looked to Parks as a place where I was able to connect people to resources to improve their physical, mental, and social health.”

Q: What benefits do you receive at your job?

A:            “My job offers pension, 401K, commuter benefits, counseling, free in-house courses & certification, health insurance, dental, and discounts for entertainment and hospitality services.”

Q: Which of your benefits is most favorable to you?

A:            “Before this pandemic, my most favorable benefit was the commuter benefit. The benefit was taken out of my pay pre-tax, so I could see a significant difference in my take-home pay. Now that I work remotely, I don’t use it.”

Q: Are you satisfied with your current job benefits? If not, what would you change or add?

A:            “I’m mostly satisfied with the offerings. I would, in fact, add paid lunch, improved maternity/paternity leave, more career development opportunities, and more information and help regarding signing up for benefits.”

Both of these interviews were very interesting. Rebecca’s situation shocked me. I’ve known her for a while and I know how risky it is to work with mentally ill individuals. One would think that such a high-risk job would be afforded any benefit possible. Aside from passion, there’s not much incentive for people to put themselves in that position. I was also very surprised to learn that her workplace doesn’t offer tuition reimbursement, especially when their employees are constantly handling delicate situations in which mental health education, which is always evolving, can be the key to escalating or deescalating these situations.

Nicole’s situation is much more familiar to me because I am a fellow city worker. I have very similar benefits. On thing that resonated with me was when she stated that she would like more information and help regarding signing up for benefits. During my onboarding process, I was given little to no direction regarding signing up for anything. I found out about most of these things from senior coworkers. I think there should definitely be a program or orientation that has a segment to guide us so that we can utilize our benefits.

Christian Narine                                                                                                       November 4th, 2020

BUS311 1900                                                                                                        Professor Brielle Buckler

Unit 9: Benefits and Services

Assignment – Benefits

Benefits are – Indirect financial and nonfinancial payments employees receive for their employment with the organization and which employers use to attract, recognize and retain workers. A total compensation package can include salary, bonuses, health-care plans, and a variety of other types of compensation and is an important part of the overall organization’s strategic HRM plan, since much of the organization’s budget is for employee compensation. The goals of compensation are first to attract people to work for your organization and second, they can be used to retain and motivate employees to work at their peak performance and improve morale of the organization – From our Unit 9 Lecture; Companies compete for top talent. The better the perks, the better the work environment, the more loyalty they receive from their employees.

As the work force changes, to include more women, single parent house-holds and more-late-in-life workers, organizations are changing their operations to incorporate new benefits for employees. There are some benefits that matter more and some that matter less to certain people. Therefore, some organizations shift to more of a cafeteria approach, where the employee would choose their benefits, much the same way you would fill your plate in a cafeteria line [pre tax]. This benefits the employees to maintain a better work life balance. Some of these non-traditional benefits can include –

• Flextime – Employees’ workdays are built around a core of mid-day hours, but each can opt to work early or late depending on preference.
• Telecommuting – benefit in geographical areas where reliable mass transit may not always be available.
• Compressed work week – for example, an employee might work four ten hour days instead of five eight-hour days.
• Job Sharing – two or more people share one full time job.

What appeals to employees can vary based on generations. For example, as I get older and begin to consider having a family of my own, my priorities will change, and I might consider taking a lower rate of pay to gain the value of choices of benefits, like paid time off, ability to work remotely, more flexibility and control over my schedule.

Research indicates that these benefits are paying off in the long run for companies, especially as more women enter the workforce. For instance, consider the voluntary none-wage benefit of child care assistance. Although employers are not required to provide child care assistance beyond the minimum unpaid leave requirements with the Family and Medical Leave Act. Research has found that child care can be a major challenge for working parents. A Study by an economist at the Bureau of labor statistics in 1991 estimated that over 1million young mothers were out of the labor force due to challenges in finding adequate child care. Low income mothers who worked, paid for child care out of their wages and spent more than 26 percent of their weekly income on child care. This expense can create a difficult circumstance, where mothers have to consider the choices of either continuing to work and forego a substantial amount of income to child care or leave the work force.

Evidence from companies described in Unit 9 Lecture, suggests that these perks are sustainable. As companies begin to compete for top talent, benefit programs have been one of the ways to attract employees beyond high pay. These benefits are designed to keep the employee happier for longer and are often present at large tech companies like Google, described in Unit 9. Google receives almost 2.5 million resumes every year. Google’s research proves that these perks that seem like luxuries is actually good business. To reiterate some tenets of Chapters 6 – The goals of compensation are to attract the best talent to work for your organization. Increase employee loyalty, motivate employees to work at their peak performance and improve morale of the organization, resulting in overall organizational growth and development.

My interview explored the benefits of a large financial equity institution, entry level position. The Benefits Program were foremost, easily accessible throughout the organization, widely communicated and a significant part of a new employee’s orientation. The HR managers conducts monthly workshops to ensure all employees are aware of the benefits available & updates on any changes. Following are just some of the benefits, not only the Benefits required by Federal and State Laws but the other benefit programs that often go beyond pay and vacation days to attract the best talent, that the employee can enroll in at anytime during the year, they include –

Work/Life:

• Student Loan repayment assistance program
  • As a new college graduate I can consider taking a lower pay rate for this benefit.
• Tuition Assistance program
  • Helps to promote loyalty in the organization to grow.
• College referral program
  • Educational benefits. As a recent graduate I can work towards expanding education to help with promotions & grow with the organization.
• Employee Assistance Program [EAP]
  • The EAP designates a counselor to be exclusively available to the employee several days a week. I can relate to this benefit for mind and body balance.
• Veterinary Pet Insurance
  • For those of us with pets, like myself, having this insurance discount through my employer will help me lower my pet ownership costs.

As the employee priorities change, so do the benefit choices offered, some of these include:

• Fertility Adoption and surrogacy
  • This is an example of the HRM organization’s strategic plan on retaining talented employees.
  • Employees might consider not leaving for higher paying jobs if this benefit aligns with their current life stage.
• Elder and Child care support
• Personal line of credit
• Home loan program

Benefits are extremely important to employees. Since the cost of obtaining the benefits outside of work if the employer does not provide them can be expensive for individuals. Organizations typically use their workforce and leverage their vendors to lessen their benefit costs for each person that works for the organization. The choices of benefits will continue to evolve as organizations adapt to the changing requirements of employees.

Work Cited

Law Shelf Educational Media. Employment Benefits-Module 4 of 5

https://lawshelf.com/videocoursesmoduleview/employment-benefits-module-4-of-5/ . Accessed Nov 4, 2020

University of Minnesota, M Libraries. Chapters 6.4 /6.5 Human Resource Management

 https://www.oercommons.org/courses/human-resource-management-3/view /. Accessed Nov 4, 2020

Buckler,Brielle. Unit 9 Lecture

https://youtu.be/uUDvL1tonZo.  Accessed Nov 4, 2020

Itza Garzon                                                                                                    Professor Brielle Buckler

11/08/2020                                                                                                    Bus 311-1900

Benefits and Services

When you think about applying for a job, there are a few factors that take into play. Most people would normally go for a job that is appealing to them or in a field that they see themselves in long term. However, with that also comes looking into jobs that have more to offer and by that, I mean employee benefits. Benefits play a big factor in attracting candidates as well as retaining them. There are many kinds of benefits that employers may offer such as bonuses, employee discounts, health insurance, workers compensation, paid vacations, medical leaves and the list goes on. These are a few of the benefits that some companies make available, and while they are not mandated companies who offer benefits show their interest and investment in an employee which help retain talent.

Companies are always looking for a way to keep their employers and avoid turnover rates at their companies to go up. By making benefits available to employees it shows that the company is appreciative of the work they have to offer. Although some companies do have a specific requirement in order to receive benefits such as being full time, when they attract the right people, they work hard to earn them. Gap Inc for example has a list of great and very Unique benefits. These benefits include healthcare, employee discounts, Savings and retirement plans, Stock plans, Paid time off, commuter programs, mental health programs and for me the most important would be tuition reimbursements.

For me some of the most important and most attracting benefits that have really stood out to me are Paid time off, Health insurance and lastly Tuition reimbursement. Life can get crazy and sometimes you have unexpected life events that happen as well as wanting to take time off just because you need a break however some people struggle to take time off because well we all need the money and so they feel tied to their job , by offering paid time off you are able to have a good work life balance and employees will appreciate feeling like their job won’t be at risk for taking personal time. Health insurance is also very important to many, it can be very expensive to get health insurance and for your job to be able to provide that to you is great it relieves some stress in the event that you have to visit a doctor or in case of an emergency. To me the most important is tuition reimbursement, to me this is the one that stood out the most, being a student and working fulltime can be stressful and while this is not a traditional benefit it is one that would be very appreciated by those who want to continue their education but want to work as well. In many companies the majority of workers are students by being able to offer them something it will keep them interested and as well as keeping them engaged at work. Ideally pay is really important, however I would consider a lower pay to keep the benefits that suit me the most and that I prefer over the pay. When a company is able to offer you something that may not be as assessable otherwise its definitely something id consider.

With companies becoming more and more competitive it is important to stand out and have something that employees look forward to. It will make your employers more loyal and will help the company retain talent. One sustainable benefit is healthcare it is the one that stands out the most to employees when companies can offer this to them and about 61% of workers have said they are very satisfied at their companies for being able to offer healthcare. In the long run benefits will always play a big part in attracting and retaining employees.

During this time, many people have gone unemployed due to the pandemic. Before this coronavirus happened, everyone had jobs. There are several organizations that offer benefits in the job, such as medical, dental, vision, etc. The United States Department Of Labor, has a specific program called, “Federal Employees Health Benefit Program” which allows the employees and their family to get the health insurance that they need. The Department Of Labor has various benefits that can be added if the employee decides to have a small amount of their payroll deduct in order for them to have these services. Some organizations are changing their operation to incorporate new benefits for employees, by having 401k which allows employees to save money for their retirement which all jobs do not offer.

My personal favorite benefit is the medical and dental benefit. The reason why I favor the medical benefit is because I have access to good medicine which allows me to be safe for my family and for work. The medical benefit allows me to add my family members so they will receive just the same type of care I am receiving from my medicaid. The reason why I would accept a Lower rate of pay in order to gain the benefits, so I don’t have to be worried about paying my medical expenses. If I were not to be receiving medicaid from my job, I would be paying the full amount that the hospital, or clinic charges me.

Researchers say that these benefits are paying off in the long run for companies, in my opinion these “perks” that the companies provide for their employees are a good thing. Without these benefits provided from the companies, the companies wouldn’t have reliable employees to work with them. These “perks” are sustainable due to the fact that these benefit help the employees as individuals.

Employee Benefits

It is understandable for employees more so recent college graduates to seek the highest paying jobs while overlooking the significant role played by employee benefits to the total compensation. With over 30 percent of total compensation being bundled up in benefit packages, today’s employees are no longer in search for a normal 9am-to-5pm job with a good payment package but instead are continuously seeking jobs that provide several benefits that promote career and personal growth (Dulebohn et al., 2009). As a result, companies have embraced providing employee benefits in an effort to attract and maintain a wider talent pool over their competitors.

The hospitality industry where I work, employee benefits are slowly changing to become part of the compensation package. These include health, vacations, retirement plans, paid leave, vacation and sick off days, unemployment and disability insurance (Dulebohn et al., 2009). Retirement benefits take the form of a certain percentage of the basic salary submitted by the employer on a monthly basis so as to safeguard the income of the employee once they retire. In addition to retirement benefits, my employer also offers public holiday day offs at a later date when the client flow reduces as we are most busy during holidays. In addition, we have a 30-day paid annual leave which should be requested in advance to prevent shortage and allows us to rest and rewind.

Health benefits in my workplace and the hotel industry in general are offered in the form of a comprehensive medical insurance cover for the employee and immediate family members. Employers in the hospitality industry are offering Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), or high deductible health plans. HMOs have their own network of physicians and hospitals who provide services to its members at a lower cost while PPOs provide maximum benefit for using in-network doctors and facilities but still offering some coverage for out-of-network care (Dulebohn et al., 2009). High deductible health plans allow hotels to contribute a certain percentage to add to the monthly deductions and ease the burden on the employee. Most hotels also provide on-site exercise facilities and stress reducing programs. The gym is free for all employees after working hours which saves money while at the same time keeping fit.

Of all these benefits, I most prefer the comprehensive health plans offered by my employer as it reduces the ever-rising cost of health insurance. The plan ensures that me and my immediate family members have access to basic and specialized health services at an affordable rate using the company’s health networks. This would otherwise cost a fortune if we were to sort it out of pocket. Additionally, the company’s health network also shares some of the best performing physicians in the country that would be difficult to find on a personal plan. For this reason, I would consider taking a lower rate of pay provided I know that my health is well taken care of.

Studies have proved that employee benefits are crucial for the well-being of workers which in turn accrues several advantages for the companies offering them. To begin with, employee benefits improves organizational productivity by attracting competent and talented employees (Dulebohn et al., 2009). The wider talent pool brings in more creativity as workers establish new and better ways of doing things. Such innovations drive sales and increase profitability. The benefits also improve the morale of the workers as they feel more appreciated and engaged in the work area. Such motivation reduces the employee turnover rate (Němečková, 2017). It also ensures that they identify with the organization’s vision and mission this give their best leading to increased productivity and better revenues thus ensure sustainability of the provided perks.

References

Dulebohn, J., Molloy, J., Pichler, S., & Murray, B. (2009). Employee benefits: Literature review and emerging issues. Human Resource Management Review, 19(2), 86-103. https://doi.org/10.1016/j.hrmr.2008.10.001

Němečková, I. (2017). The role of benefits in employee motivation and retention in the financial sector of the Czech Republic. Economic Research-EkonomskaIstraživanja, 30(1), 694-704. https://doi.org/10.1080/1331677x.2017.1314827