Employee Benefits

Presented byShivraj C.

Overview Introduction Objectives

Designing the Benefits

Benefits Administration

Trends and issues

PG Centre, VTU Belgaum

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.

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.

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


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.


Overview Designing the Benefits

Types of Benefits

Companies with Best Benefits

Life inside Google


Trends and issues


Healthcare

Private medical insurance

(PMI)

Employee assistance

programs (EAPs)

Personal accident insurance

Healthcare cash plans

Subsidized gym membership


Child care

Employer funding of childcare Employer makes full or partial

payment for the cost of childcareservices, regardless of location.

On-site childcare Employer manages a childcare

facility at the work site.

Off-site care Employers, or a group of employers,

manage a childcare facility away from the work site.


Retirement 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)


Insurance Plans◦ Life insurance◦ Health insurance◦ Disability insurance◦ Other

Time-off Plans◦ Sick Leave◦ Vacations◦ Paid holidays◦ Sabbaticals


Miscellaneous

Work-life balance

Telecommuting

Subsidized food services

Fitness programs

Recreational opportunities

Education subsidies

Financial assistance

Stock options

Parking

Transportations

Travel expenses

Relocation expenses


Type of benefit Description

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

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

Work-Life BalanceThe top 10 Best Companies where employees feel "encouraged to balance their work and personal life."

TelecommutingOf 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.

Sabbaticals 22 companies on this year's list offer fully paid sabbaticals.

Unusual PerksThese companies found unusual ways to keep their workers happy.

Source: “100 Best Companies to Work For 2007” Fortune magazine


Source: “100 Best Companies to Work For 2007” Fortune magazine


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

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

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.

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.

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.

Pets allowed: Dogs are a regular part of the Google atmosphere.


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.

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


Overview



Trends and issues


Absence recordingAbsence 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.

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.

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


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

IntranetA 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.

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


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

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

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

Self-service administration systemsThese allow employees to access their personal details and update

records such as a change of name or address.


Overview



Trends and issues


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.


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.


Employee Benefits

Documents

Transcript of Employee Benefits