Introduction
The purpose of this report is to research and analyze the company Air Canada thoroughly, through applying the knowledge gained from chapter 12 (Human Resource Management pages 370 – 371). The functional area of this report is Human Resources Management with the topic being compensations, more specifically fringe benefits. The following report will cover how fringe benefits impacts Air Canada both in a positive and negative way, while also coveing
Company Topic Application
Human resources management is defined as, the [process of evaluating the needs of a business or organization with regards to employees, especially in hiring, recruiting, motivating and compensating employees.1 One of the major roles of this function involves
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As searching for and obtaining high-quality workers becomes more competitive among businesses, companies are continuously looking for more ways to attract and hold onto effective and efficient employees. According to PROFIT Magazine’s PROFIT HOT 50, when HOT 50 CEOs were asked to score their most essential factors leading to success, they all rated hiring good staff and retaining them at 9.3 and above.4 Offering fringe benefits allow; decreased employee turnover, improved employee satisfaction and performance improvement. That being said, as time goes on, many company are increasingly overspending on employee benefits and thus, cutting back into company profit.
Air Canada offers many individualized benefits to their employees. Air Canada tries to fit the needs of each individual employee by providing a flexible insurance plan that consist of benefits like life insurance and, health and dental care for the employee and their family.5 Also, Air Canada has the most generous travel/ vacation plan in all the airline industry, including great discounts for the employee; they’re until family, and their friends
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There are many trends aiding in the reshaping of Canada’s pension plan industry – going from greater employer interest in sharing or off-loading pension risk to an increased concentration on de-risking.10 An increasing amount of Canadian employees are switching from Defined Benefit plans by removing the DB option for new employees or by introducing a “soft or hard freeze”, according to Borden Ladner Gervais lawyer, James Fu.11 As DB plans are on the decline, Canadian industries are experiencing a growth in capital accumulation plans, such as voluntary retirement savings plans (VRSPs) and pooled registered pension plans (PRPPs) – new contracts designed mostly for the sake of the self-employed and for those employees lacking in workplace pension plans.12 In contrast, Canada’s Research-Based Pharmaceutical Companies assigned IMS Brogan to research and provide an estimation of the overall private drug costs for 2013 to 2017.13 Their report said that Canadian private pharmaceuticals plan drugs cost (such as wholesale and pharmacy makeup plus ingredients costs) should exhibit a growth of a compounded annual rate of 1.6% to 2.8%.14 Following the decrease in interest and benefits in pension plans, the Canada Pension Plan benefits have been increased by up to 1.2% for those already part of it.15 As seen in the article, Canadian companies large or small, are trending towards dropping the DB and DC pension plans and creating a more suitable hybrid program, involving DB and DC pensions
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.
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
The recent economic downturn has served to demonstrate the vulnerability of Westjet global economy and in particular, the tenuous financial thread by which a considerable number of airlines around the world operate. In Canada, there continues to be an uneven playing field that serves to give Canadian operators a disadvantage. This has resulted in a considerable increase in the number of Canadian passengers who cross the Canada/U.S. border to travel from the U.S. to their destination. This will continue to have a detrimental impact not only on Canadian airlines, but on the economy as a whole through the loss of jobs as passengers take their business out of the country. Westjet continue to call on and work with the federal government to remove these impediments to competition so that Canadians have a competitive choice and Canadian airlines can continue to thrive.
The author explain that most individuals look forward to a guaranteed paycheck, medical benefits, work compensation, fringe
When it comes to customer service, Air Canada has a few positives. Passengers will feel safer knowing that there will be crew members in the cockpit at all times, so an event like the Germanwings crash does not occur again. They will enjoy the lower cost of their flights, as Air Canada tries to become more competitive. In the Boeing 787 Dreamliner, passengers have improved reclining in their seats, a more modern entertainment system, less turbulence, 40% humidity (so it feels like they're sitting at home), and more advanced windows. There is a new mobile app and an updated website, so passengers can conduct their business at their convenience. The airline is also trying to focus more on customer service, with pre-filled customs form, and flight
The health care system in Canada seems to be a well-functioning system, but is it really? The negatives of the system are rapidly growing and the positives of the system are decreasing in the eyes of Canadian citizens. This paper will weigh the positive and negatives of Medicare, followed by a personal response on what could be fixed in order to make the system better than it is now. The positives of our health care system are great aspects to have, but the system is beginning to show many signs of attrition because of it (Simpson, 2012). Each individual should be charged for a doctor’s service, as it may resort in less wait times and decreased costs in taxes.
Mail workers from external organizations do not receive the benefit of a defined pension plan. The new standard for pensions has moved to contribution based pension plans. If Canada Post intends to follow this trend, they will need to prove that this decision was reached fairly by proving the costs of the defined pension plan is unaffordable given the economic climate of low interest rates. However, Canada Post’s workers do not experience procedural justice as the CUPW argues that the defined pension plan will develop a surplus once interest rates rise and would continue to remain solvent afterwards. The CUPW’s argues that the defined plan will rebound in the near future “CPC spokespeople are always talking about the deficit in the Canada Post Pension Plan. But they never mention that the plan also has a huge surplus. And while the surplus is growing, the deficit is decreasing… there is no reason to believe the plan will be terminated. Solvency deficits are caused by low long term interest rates. Should (or when) interest rates go up by only 1%, the solvency issue will disappear entirely” The methods Canada Post used to propose a change the pension plan was considered unfair by the CUPW and the temporary solvency problems of the plan is only
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.
Maple syrup, ice hockey, igloos, poutine, snow, and peacekeeping: these things conjure Canada in the minds of many around the world. Others will add health to the list, for Canada’s public health care system is one of the oldest, and most celebrated in the world because Canada has comforted to global humanitarian, migration, and medical crises for decades. To more than 90% of Canadians, the healthcare system is a source of collective pride and security, and a key element of being Canadian. To Canadians, the belief that access to health care should be based on need, not the ability to pay, is a defining national value.
Employee benefits coordinator play a significant role in Human Resource Management. Employee Benefits coordinators are responsible for assisting with employee benefits, maintaining employee data base, managing all insurance billings and maintain employee files, sick pay, vacation and retirement. This study explores the importance of employee benefits to corporations, government agencies and non profit organizations. This paper also researches the effects on the management team and on individual employees’.
Human resource management (HRM) encompasses the activities of acquiring, maintaining, and developing the organization's employees (human resources). "The traditional view of these activities focuses on planning for staffing needs, recruiting and selecting of employees, orienting and training staff, appraising their performance, providing compensations and benefits, and making their career movement and development." HRM involves two aspects:...
Human Resource Management (HRM) can be defined as “the set of programs, functions, and activities designed and performed in order to capitalize on both employee as well as organizational effectiveness. It is a management function that helps organization in recruiting, selecting, and training, developing and managing
Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic departments where research and teaching in all these areas take place have adopted the title department of human resources management. HRM is a coordinated approach to managing people that seeks to integrate the various personnel activates so that they are compatible with each other. Therefore the key areas of employee resourcing, employee development, employee reward and employee involvement are considered to be interrelated. Policy-making and procedures in one of these areas will have an impact on other areas, therefore human resources management is an approach that takes a holistic view and considers how various areas can be integrated.
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
The main purpose of Human Resource management is to develop both the individuals and the organization. This means Human Resource is not only responsible for finding and maturing talents of workers, but also putting programs in effect that will enhance communication between other workers.