Introduction The modern, North American workforce has become increasingly diverse, containing people of multiple backgrounds as well as several multiple generations. As a result of this growing composition of differing elements, many employers are beginning to offer a flexible benefits plan, as it is evident that one size does not fit all. Employees may be at various stages in their lives compared to their coworkers, and therefore may value different things when it comes to the benefits portion of their total compensation package. However, not every organization is the same. Smaller businesses are not necessarily able to offer these kinds of benefits. Therefore, this essay will focus on the demographic of larger organizations who are able …show more content…
The course textbook defines a flexible benefits plan as a “benefits plan in which the employee is provided with a specified amount of money and then chooses which benefits to spend the money on, according to their attractiveness and cost.” (Milkovich et al., 2013) The significance of a corporation administering flexible benefits plans is that its staff most likely contains people of numerous generations, and, therefore, its workers will value distinct aspects of their benefits plans. For example, Baby Boomer employees are approaching retirement, with many of them choosing to work longer in order to increase their pension. Conversely, Generation X (those born from 1965 – 1980) and Generation Y (those born from 1980s – early 2000s) employees have very different requirements that they value compared to the Baby Boomer generation. (Asghar, 2014) While the Baby Boomers are going to be more concerned with pensions, Generation X employees are likely to be more concerned with health and dental benefits for themselves and their families. Also, there is quite a bit of variation within each generation. For example, Generation Y can be broken down into several categories: the people who are available to work and are starting families, those who are just leaving university and entering the workforce, and those who are not yet available for work. Given this information, it has become increasingly more important for …show more content…
Employers can choose from a variety of plans including core-plus-options plans, also known as a “cafeteria plans”, and flexible spending accounts. The Inc. 5000 Encyclopedia article on flexible benefits illustrates that in a cafeteria plan “the employee receives a spending credit, with which he or she may choose to "buy" benefits from a list of options such as health insurance, life insurance, etc.” In contrast, a flexible spending account is a tax-deferred savings account which the employer establishes that allows employees to contribute pre-tax dollars they can later withdraw to pay for benefits such as insurance premiums, out-of-pocket medical costs, day care provider fees, etc. (Inc. 5000,
Commonly associated with pay for employees, benefits is the second biggest obstacle for management. Like Volkswagen starts employees off at the basic pay the unions would achieve, a similar benefits program should be implemented (Greenhouse, 2014). The passing of the Affordable Health Care Act has made it possible for many citizens to receive coverage but it is basic at best. GMFC should create a plan based off of the Health Care Act and unionized plans and allow for extras to be added on. This allows for employees to pick the benefits package that works best for them.
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
It appears that Generation Y is executing the wishes that other generations of workers subdue, and are subsequently portrayed as a vocal group by default. As a result of millennials’ demands, various companies are now beginning to conform to the ideas this generation presents. As such, new policies are being implemented,
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
By 2025, about 75% of the American workforce will be made up of Generation Y workers, said Emily Matchar, author of “Why Your Office Needs More Bratty Millennials.” Generation Y, also known as millennials, are those who were born within the years 1982 and 1999. Time management has become a persistent issue for people in the United States because of the lack of flexibility in the workforce. Work is taking over people’s lives. The current generation of workers tend not to demand because of the fear of unemployment; jobs are scarce these days. Generation Y workers have shown that they will not accept today’s hierarchical workplace, on the contrary, they will begin to change the workplace to their likings.
The steps that follow, enrolling and receipt of the information by Arbor, include getting the health options back from the employees. These options may include benefit changes from the previous period, new dependents, and choosing the amount to be deposited in a Flexible Spending Account. This information is retrieved and compiled in three different ways: downloading from the Internet, downloading if from the Interactive Voice Response (through the phone), or from worksheets submitted by employees.
The author explain that most individuals look forward to a guaranteed paycheck, medical benefits, work compensation, fringe
“To make your company competitive and attractive to job candidates you have to offer an exceptional total benefits package” (Obringer, 2003, para.1). This is especially true in the current economic environment. The employee’s needs are changing so businesses are having to rethink their compensation and benefits packages. The home improvement industry is no exception to this phenomenon. Companies like Ace Hardware, Lowes Home Improvement, and The Home Depot have had to adapt their benefits packages to stay competitive in an industry with an ever-changing employee demographic. The following pages will include a comparison of all the benefits offered by Ace Hardware, Lowes Home Improvement, and The Home Depot, as well as, a glimpse into whether or not their strategies seem to have been successful. The majority of the benefits are available to all employees, but some of them are only available to corporate team members. To make sure that all of the available benefits are covered and for comparisons sake, the focus of this report will be on the corporate level of benefits. Also due to the wide salary ranges between low level employees and corporate employees, this report will not focus on salaries.
The cost and administrative burden of providing health care benefits to employees has grown rapidly in the last several years, and organizations have opted to cheaper means of doing this by resorting to CDHPs programs that are little bit cheaper when using deductible health insurance plans. This has led to the hope of healthier generation in the near future as the cost of health services would be manageable (Buntin, Damberg, Haviland & Kapur, 2006).
One of the fastest growing groups in in the United States is known as the Sandwich Generation. The “sandwich generation” name was first heard in 1981 when social worker Dorothy Miller developed the phrase to describe middle aged adults who were caring for aged relatives, while still looking after adolescent children (Steelman, 2014). In the last century (1900-2000), the expected life span of a person residing in the United States increased from 47 to 76 years. The U.S. Census Bureau estimates that the number of Americans aged 65 or older will double by the year 2030, to more than 70 million. This increase in the elderly population has placed a strain on the government systems of Medicare for healthcare and Social Security for living expenses. High costs along with the decline in the job mark...
From the baby Boomer generation, to the young adults just entering the work force for their first time, everyone will have the opportunity to access health care, some for the first time in their lives. Obama Care is an affordable choice for those who need it. When choosing a plan that is right for you, several options are available. “The marketplace allows individuals and small businesses to compare health plans on a level playing field.” (Key Features of ACA by year) With these baseline individuals are able to pick a plan, which is affordable for their lives. In addition to those who select their coverage, there is a separate plan for the population of Americans who are 65 years or older. This plan is known as Medicare. As with every insurance company, Medicare has separate breakdowns plans, to which coverage is not determined by your income. Medicare is an insurance plan for the baby Boomer generation. Robert B. Reich addresses the baby Boomer generation in his essay “Why the Rich Are Getting Richer and the Poor, Poorer” In the essay Reich was able to address the growth of our nation as a metaphor of boats rising and falling. This quote describes how workers in the twenty first century will be responsible for the Baby Boomer’s standard of living. He
Offering employee benefits is one way a company must competes in today’s marketplace to retain old employees and attracts new ones. These benefit packages may range from offering basic health insurance to additional discretionary and perk benefits such as vacation and retirement packages. Benefit packages are often a large portion of employee costs and Federal mandates require an employer to carry and offer certain benefits even if they offer nothing else. Federally required employee benefits make up approximately a quarter of the costs associated with employer offered benefit packages. Some of these mandated benefits include Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act.
Robbins (2013) recognizes that baby boomers have an enormous hard-working attitude with a definitive want to characterize themselves through their expert achievements. Baby Boomers, born between 1946 and 1964 value their achievement, ambition, loyalty to career and dislike to authority in competitive workplace (Robbins and Judge, 2017). Gen Xers, born between 1965 and 1977, who are independent-minded like work-life balance, team-oriented, loyalty to relationship and dislike of rules. The generation born between 1978 and later, known as Millennials value flexible hours, teamwork and collaborative culture, career development, loyalty to both self and relationships with employers and dislike the formality of regular meetings if there
The organization is able to manage a high coverage of risks at relative low costs owing to the availability of highly skilled personnel in the company’s team of employees. This benefit also brings about another advantage of easing the financial burden of the organization (Johnson, 2016). Besides, effective employee benefit system offered by the organization could improve the general productivity. This benefit is attributed to the fact that employees tent to be more effective when they are given assurance of job security. In addition, workers become more productive when they and their families are given the desired security by the employer. The other benefit to the organization if it employs an effective compensation and benefits system entail benefits from premiums (Wayne, Shore, M., Bommer, & Tetrick, 2002). These premiums are typically tax deductibles as corporate expense. As such, a company that has an effective compensation and benefits system is likely save extra money for other
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay