12)Employee Benefits & Services

8/13/2019 12)Employee Benefits & Services

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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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(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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(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

12)Employee Benefits & Services

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