Employee Benefits

Presented by Shivraj C.

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Overview  

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Introduction Objectives

Designing the Benefits

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Benefits Administration PG Centre, VTU Belgaum

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Employee benefits (also called fringe benefits, perquisites, or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries.

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Employee Benefits are growing in both cost and complexity. Once regarded as "fringe benefits"--minor appendages to basic wages and salaries--they now commonly account for a fourth or more of expenditures on employee compensation.

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Furthermore, their increased complexity is a major reason for the growing professionalization of benefits design and administration. PG Centre, VTU Belgaum

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Employers’ objectives in providing benefits:  Enthusing and motivating employees to work harder.  Improving staff retention and attraction.  To foster good morale.  Improving the health and welfare of employees.  Being seen as an employer of choice.  Reducing workplace stress.  Complying with benefits regulations.

PG Centre, VTU Belgaum

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Overview

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Designing the Benefits  Types

of Benefits

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Companies with Best Benefits

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Life inside Google

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Benefits Administration

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Trends and issues

PG Centre, VTU Belgaum

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Healthcare Private medical insurance (PMI)

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Employee assistance programs (EAPs)

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Personal accident insurance

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Healthcare cash plans

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Subsidized gym membership

PG Centre, VTU Belgaum

 Child

care

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Employer funding of childcare  Employer makes full or partial payment for the cost of childcare services, regardless of location.

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On-site childcare  Employer manages a childcare facility at the work site.

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Off-site care  Employers, or a group of employers, manage a childcare facility away from the work site.

PG Centre, VTU Belgaum

 Retirement 

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Plans

Defined benefit scheme  guarantees a certain payout at retirement, the sum of which is based on an employee's salary and length of employment. Defined contribution scheme  is built up through cash contributions from both the employer and the employee. The final fund employees stand to gain, however, is dependent on the stock market performance of their investment choices. This scheme may include: • 401(k) plan • Individual Retirement Accounts (IRA) • Simplified Employee Pension (SEP)

PG Centre, VTU Belgaum

 Insurance

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Plans

Life insurance Health insurance Disability insurance Other

 Time-off

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Plans

Sick Leave Vacations Paid holidays Sabbaticals

PG Centre, VTU Belgaum

 Miscellaneous 

Work-life balance

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Stock options

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Telecommuting

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Parking

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Subsidized food services

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Transportations

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Fitness programs

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Travel expenses

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Recreational opportunities

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Relocation expenses

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Education subsidies

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Financial assistance

PG Centre, VTU Belgaum

Type of benefit Health Care

Description Sixteen companies on this year's list pay 100% of their employees' health-care premiums.

Child Care

Almost one-third of the Best Companies (32) offer an onsite child-care center.

Work-Life Balance

The top 10 Best Companies where employees feel "encouraged to balance their work and personal life."

Telecommuting

Sabbaticals Unusual Perks PG Centre, VTU Belgaum

Of the 82 Best Companies that allow employees to telecommute or work at home at least 20% of the time, these 10 have the highest percentage of telecommuters. 22 companies on this year's list offer fully paid sabbaticals. These companies found unusual ways to keep their workers happy. Source: “100 Best Companies to Work For 2007”

PG Centre, VTU Belgaum

Source: “100 Best Companies to Work For 2007”

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Google's gourmet food: Google runs 11 free gourmet cafeterias at its Mountain View, Calif., headquarters, and offers all its employees free gourmet meals.

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Getting around: Google operates free, Wi-Fi-enabled coaches from five Bay Area locations. Offers onsite car washes and oil changes.

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Conveniences: Employees can do laundry for free in company washers and dryers . Onsite hair cuts, locker rooms, a massage room, child care, onsite notaries and five onsite doctors available for employee checkups, free of charge.

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Stretching the limits: At Google you can work out in the gym; attend subsidized exercise classes; get a massage; study Mandarin, Japanese, Spanish and French.

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User-generated content: Google engineers are encouraged to contribute ideas to the business, but nontech ideas Googlers dream up have a shot at adoption as well.

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Pets allowed: Dogs are a regular part of the Google atmosphere. PG Centre, VTU Belgaum

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Search and enjoy: Employees enjoy the "college-like" atmosphere at Google. Line in the sand: A beach volleyball pit is an unusual sight on a corporate campus - unless you're a Google employee. Climbing the corporate ladder: A rock climbing wall is one of the fun activities on the Google campus. Hanging Around: Work is such a cozy place that it's sometimes difficult for Google employees to leave the office.

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Keeping pace: Employees participate in the four-legged holiday race, a charity race held on campus. PG Centre, VTU Belgaum

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Overview Designing the Benefits

Benefits Administration Trends and issues

PG Centre, VTU Belgaum

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Absence recording Absence can be recorded electronically or on paper. Increasingly large numbers of employers are implementing systems that allow employees or their managers to record absences themselves.

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Enterprise resource planning (ERP) ERP software systems integrate key business processes of organizations into a single software system that allows information to flow seamlessly throughout the organization.

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Financial calculators Financial calculators allow employees to calculate the value of their own benefits, pensions and share options.

PG Centre, VTU Belgaum

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In-house administration This is when the benefits are administered by the employer (usually the HR department), rather than outsourced to an external administration company.

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Intranet A network based the Internet belonging to an employer, accessible only by employees. An intranet's websites look and act just like websites on the internet, but the firewall surrounding an intranet prevents unauthorized access.

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Online administration Administering benefits via the internet, where the software is held by a third-party administrator.

PG Centre, VTU Belgaum

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Online holiday booking Online holiday booking allows employees to access their holiday entitlement records and to request annual leave online.

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Outsourced administration A third-party administrator does the administration of benefits on behalf of an employer.

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Payroll systems Software that allows employers or payroll providers to process pay information for workforces.

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Self-service administration systems These allow employees to access their personal details and update records such as a change of name or address. PG Centre, VTU Belgaum

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Overview

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Designing the Benefits

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Benefits Administration

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Trends and issues

PG Centre, VTU Belgaum

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The trends that employee benefits include:  Increasing health care costs have driven employers to seek innovative cost control solutions such as disease management, enabling Internet-based health care tools, establishing a wellness campaign  More number of employers are offering a defined contribution plan.  Most of the administration of benefits is moving online.  Outsourcing of benefits continues to appeal.

PG Centre, VTU Belgaum

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The issues shaping the benefits design: Improving the perceived value of the benefits package. Making the benefits more cost-effective. Communicating the benefits. Improving the staff engagement levels. Matching benefits to employee needs. Complying benefits to legislation. PG Centre, VTU Belgaum

PG Centre, VTU Belgaum