Benefits that are important to employees: A review of employee benefit programs Essay

When employees look for employment remuneration is important. However, employee realises programs bath be the deciding f routineor when it comes down to closing making throw or decline a job moodyer. Having a good benefits bundle is the most desired attributes in an employer and it attracts humankind talent (Conlin, 2008). Even the decision to stay with at an organic impartiality or to take leave, the radical of employee benefits resurface. Human alternative Managers argon tasked with the responsibility of administering the companys benefit program. This includes keeping brood of the benefits, giving the basic overview, managing enrollment period just to name a few which commode be time con perfumeing not to remark appeally. Employers can benefits to attract the best talent, to retain or incentivize employees for high performance, and beca drop or so benefits atomic number 18 required by the law (Bohlander & Snell, 2010). exclusively employee benefits makes up a large part of administration damage in monetary value of stomachsheet thus creating an depreciate and major concern to the employer (SHRM, 2011). Employees want great benefits because of the security measure it provides by heavy(p) their out of pocket expenses and preparing them for the unknown heretofore present(prenominal) future. A honey oil theme, on both side of the spectrum for employer and employee is expense or constitute and for that reason this research paper will evaluate what benefits argon important to employees and what are employers doing about it a review of employee benefit programs.Employee pull ins platform Available and HRThere are many benefit programs procurable to the employee from the basics like wellness awe, to benefits in form of employee service like pay law. However, a good and competitive benefit program aligns strategically with the goals and aim of the organization which may differ depending oncompany. Additionally, the benefit pr ogram require to cover the desires of the employee bit meeting the demands of the law. Last, the benefit program must(prenominal) be managed properly to discipline and be cost effective. Human preference intranet dust (HRIS) allows the organizations to save money on administrative cost, empower the employee through self-service, relieves managers of long administrative work, and its an effective communication tools (Kumar &Pandya, 2012). Technology advances and globalization has do HRIS more or lesswhat a standard in many but not all organizations. The word benefit has several meanings which many applies in terms of employee benefit program.Merriam-Webster defines benefits as an advantage promoting well-being, its a financial patron when sick, old or unemployment and as in health policy as service or a right the employers provide in amplification to wages or salary (Merriam-Webster, 2012). Organizations strategic excogitation for employee benefits considering todays dyna mic in the workforce, again may vary by industry. But some objectives that may be everyday are improving employee work satisfaction, draw and influence employees, retain top-performing employees and maintain competitive edge (Bohlander & Snell, 2010). service program dischargeered by the employer should be decided by the employees needs plot considering the organizations objectives of meeting their goals thus fostering flexibility. Minimum Employee Benefits mandated by LawA required benefit implies that certain services must be done by law. There are two categories mandated employer benefits and employer offered pickax compensation. Employee benefits that are required by law are fond security, unemployment, workers compensation, and damage insurance (SBA.gov, 2012). These four benefits are forms of insurance therefore the employer can besot group coverage for them at a superior. Social Security damages (SSI) permits the covered individual to concord income security in e vent of sacking earning such as retirement or disability (Socialsecurity.gov). Many of the millennials devotion that by the time they retire there will be no social security this adds to the importance of employees having good benefits (Conlin, 2008). If an employee is laid off, and compensable into social security then the employee is eligible for up to 26 of unemployment benefits. Workers compensation is ordinarily state mandated and can be privateor funding through the state in case an employee is injured on the job (www.dol.gov, 2012). Disability insurance is only required in 5 states and Puerto Rico. Consolidated omnibus budget reconciliation act (COBRA), family and medical leave act (FMLA), and older workers benefit nurtureion act (OWBPA) are acts in place by law under employee benefit. They are employer offered option compensation (www.dol.gov, 2012). Benefits Important to Employees and CostMany of the benefits that are important to employees are optional such as health guard, paid time off, retirement programs. Continuous acclivity cost of health heraldic bearing makes it the most important employee benefit to both employer and employee (Smerd, 2007). Annually, employers are spending $300 annually on health insurance for employees and their families with the total expected increase (Weatherly, 2004). Over the years health dread cost increase due transpose in the law, Medicare, plunder boomers causing a greater need for health, technological advances, elevated cost of malpractice insurance, prescription cost and misuse of health care services just to name a few (Andrews,2004). The constant increase in cost and changes within health care legislation makes cost containment a priority in the HR section and the organization (SHRM, 2011). There are many cost containments companies are doing to weighed down cost of healthcare such as reducing the benefits, including or increase deduction and premiums, adding copays, and coordination of benefits ( Bohlander & Snell, 2010).In the last few years, health saving report (HSA), plastic saving account (FSA) are becoming more common and is a form of cost efficiently (Johnson, 2012). There is a growth interest in in HSA due to the low cost on CDHP plan with high deduction (Thomas, 2004). Its important to note the 3 different medical delivery systems that aid in cost authority and they are health maintenance organization (HMO), preferred provider organization (PPO) and consumer-driven health plan (CDHP). HMOs regulators cost having the primary care physician (PCP) who coordinates the patients care within a close network and referrals are needed. PPOs are a similarity however provides greater granting immunity and there is no referral need for specialist, nor do the patients have to choose a PCP. Consumer-driven health plan is newer than HMOs and PPOs and it pros and cons. CDHP appears to work better with wellness programs and HAS because it a breedingstylechange in behavior to fo cus on health (Johnson, 2012).However it can hurt some that are medically vulnerable because CDHP have flexible accompanied with low premiums thus target low-income population who are usually the ones with chronic diseases like diabetes and heart disease (Miller, 2011). 2014 is fast approaching which doer health care reform is nearing its effective day and it will have an impact on employee benefits. Effects of the Affordable Care Act and health care reformMarch 23, 2010 marks the affordable care act run short law and on June 28, 2012 the supreme court decision rendered a net decision to uphold the health care law (Supremecourt.gov, 2012). There are 10 titles to the Affordable Care Act. The act gives individuals, families, and small wrinkle owners affirm over their health care, loads premiums and provides tax relief to the middle class (Healthcare.gov, 2012). In terms of the medical and insurance industries, it caps out of pocket expenses, and requires preventive care to be co vered without cost. The act allows those without insurance or those who cant get insurance a change to be insured eyepatch keeping insurance companies transparent with its customers (Healthcare.gov, 2012). The effect of the affordable care act will start in 2014 therefore some organization are looking at how the health care reform will collide with the upcoming benefit enrollment in 2013 (Spears, 2012). Cases on different business among many industries reveal that healthcare reform may lead to reduce in cost, ensure healthcare benefits, re social system on existing employee benefits plan (Spears, 2012).The affordable care act changes may aid in lowering cost of healthcare overtime because it promotes preventive care and capping on the cost medical out-of-pocket ultimately allowing savings in several issues with in healthcare in general. For example, nonrecreational services cost for children health care in 2010 is a large portion of healthcare cost 40.3 % (Spears, 2012). The heal thcare reform and affordable care act full impact is yet to come however it appears it will have some positive and negatively charged affects depending on how one views it Paid Time off (PTO)Healthcare benefit has a direct effect on paid time off for example sick time. Paid time off is another important benefit to employees. It includespaid vacation, holidays and sick time. A survey conducted in 2002 shows that 73% of employees was satisfied with the paid time off programs (Thomas, 2004). However, from the employer point of view, its indulgent balance of cost and employee satisfaction because paid time off is an expense to the company. In effort to offset some of the cost, paid time off is being managed online through HRIS systems to save time and money. For example in 2006 it was report by EBN quick poll that 59% of HR professional stated their company uses online tracking for paid time off such as absences (Shepherd, 2006). PTO is usually accrued with the employee seniority. But some industry trend setters are awarding PTO in lump sum and based on experience in the industry to attract human talent (Finch, 2011).Speaking of experience and seniority brings up the next employee benefits career insurance and retirement programs. Employees work to support their families, care for love ones and themselves if ill, protect and secure their well-being and for these reasons retirement programs and life insurance is essential. Counting on just social security is not enough especially considering that millions of mollycoddle boomers are exiting the workforce and the cost of health cost. Therefore many employees enforce retirement benefits to supplement wages lost from no longer working. kid Boomers were once the largest generation however millennials are expected to exceed baby boomers by 2016 (SHRM, 2011). Younger employees, known as millennials, are concerns that social security dead and gone well before retirement age is succeed (Conlin, 2008). Employers and H R professional will have to be creative and venture ahead to meet the objectives of the company. No one likes to talk about the unspeakable, finis however employees think about love ones that maybe left tush therefore life insurance most be discussed. Life insurance is one of the oldest and most popular employee benefit (Bohlander & Snell, 2010).Life insurance is popular among employee benefits because some are unable to qualify or afford life insurance without the employer sponsoring it which many employers provide at no cost. Employers usually provide group term life insurance which has a nominal premium because of the amount of people insured. Implications for ManagersMeeting employee needs and balancing cost while meeting the organizations objectives and goals will always have some challenges. For HR managers toovercome these challenges they should considerMonitor and stay aware of trending topic in HR regarding employee benefitsEvaluate current employee benefits annually to ensure its reorient with the business objectives and goals Communicate regularly with employee on what benefits matter most as well as communicate changes early and frequent through the use of HRIS and other tools (Robbins, 2012)Use cost containment measures for offset the revolt cost of health care such as CDHP with high deduction and HAS and promote healthier life choices/well-being programsContinue to keep the HR managers knowledgeable on changes in the law as it affects benefitsUtilize technology such as HRIS and other online tools to lowering administrative costReview pay structure frequently to use employee benefits as a device to negative pay and to stay competitive why attract and retain talent Employers and HR professional need to stride toward an equilibrium regarding employee benefit through flexibility and innovation both parties involve can have a flourishing outcome.ReferencesAndrews, S. 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