HR_CHAPTER 9: THE MANAGEMENT OF EMPLOYEE BENEFITS AND SERVICES

Dole-outs

act of giving or distributing something, often money, foods, or supplies, to several people in small quantities.

Benefits

anything that is not covered by regular salaries and wages.

Length of service

Employees who have one year of service are entitled to the mandatory leave of five days per year

Statutory Benefits

benefits mandated by laws: 13th month pay, pag-ibig fund, medicare, SSS

Company Benefits

benefits granted by the company outside of those mandated by law. These benefits could be through a collective bargaining agreement and those that are given unilaterally by management.

Profit-Sharing Plans

an incentive plan under which an employer agrees to share with his personnel a specified portion of the net profits of his business at the end of each fiscal period or over a given period

The Cash Plan

also known as the Current Distribution Plan. This provides for payment of the employee's share in the profit in cash based on his salary or wage.

The Deferred Distribution Plan

this program establishes a trust fund to provide employees with future payment. The distribution of profits is withheld until the employee's retirement, death or disability.

The Purchase Plan

Under this plan, participating employees are permitted to purchase, often through payroll deductions, shares of company stock, either or less than the prevailing market price or at par value.

Economical and financial benefits

help improve employees’ economic security and reduce their financial burden.

Recreational, social and athletic services

focus on social well-being, relaxation, and physical fitness.

Health and medical services

support employees’ physical and mental health, ensuring they stay fit and productive.

Professional services

help employees improve their skills and career growth.

Strategic Benefit Implementation

Employees expect management to provide them benefits but, on the other hand, job performance remains the same

Benefit Survey and Benchmarking

Benefits should be within the level of the industry in the community and those of the competitors in business as any added cost should affect product-pricing strategy.

Cost Control Strategy

It is assumed that the larger the cost of benefits category, trajectory of the benefit category as its cost impact may run out of control and has significant discretion and control in choosing how much they spend over future

Staffing Cost strategy

• Employers may change staffing practices to control benefit costs

• The company may require the employees to work more hours and pay overtime premiums.

The Demographic Composition Cost Strategy

• The employer must also consider the demographic factors such as age, s*x and status of their work force.

Organization of Employees Cooperatives

Organizations of employee cooperatives will greatly help unburden management of employees' loans and cash advances

Communication Benefits to Employees

Any strategic implementation of any program cannot take root on employees' morale without their understanding fully of the concepts and program of management in the granting of such benevolent gestures for their welfare.

Benefits Program Evaluation

Effective program management of employee benefits is an important means by which organizations successfully complete.