Flexible Benefits Plan Essay

1222 words - 5 pages

Flexible benefit plan The employees of today?s workforce are divers. With such a workforce at hand, an employer must have a flexible benefit plan to match the composition of its employees. Flexible benefit plans are a written plan under which employees of a company are allowed to choose two or more benefits consisting of cash and qualified benefits (Everett & Miller, 1994). Some benefits offered under a flexible benefit plan are health care, dental, reimbursement accounts, life insurance, accidental death and dismemberment coverage, long-term disability, vacation, retirement savings, spouse accidental death and dismemberment coverage, and dependent care (Kleiner & Sparks, 1994).A young couple can be assured that their jobs not only meet the daily needs of their growing family, but that their children are covered for very little cost in their own employer-provided hospitalization and health care insurance. A worker employed by the same organization, approaching retirement, can choose benefits that will maximize his/her retirement income as much as possible. With his/her own children grown-up, he/she needs to attend only to his/her own needs.Also known as ?cafeteria plans,? the organization offering a choice of applicable benefits to their employees ensures that the benefits for which they pay are the most useful for each of their employees. Costs are rising in almost every area of benefit provision and administration. The organization is able to secure more favorable rates for those benefits used, if the organization is not required to provide the same service to each employee (Webster, 1996).Employee benefit plans have had a long history, and can be traced back to 1794, when the first profit-sharing plan was created by Albert Gallatin in his glassworks in Pennsylvania (Kleiner & Sparks, 1994). Another notable benefit plan includes those made by the American Express Company in 1875 with the first private pension plan, and the first group annuity contract issued in 1921 by the Metropolitan Life Insurance Company (Kleiner & Sparks, 1994). These early benefit plans were only the beginning of the benefit packages. As it turns out, the Social Security Act of 1935 gave employees across the country a legal framework that supported the development of many forms of employee benefits.Very few employers provide full family health care coverage at no cost to the employee in today?s world, but everyone can save when they provide that coverage only to those who need it. Even though the employee almost always shares the cost now, the employer still provides the major portion of the cost of health care insurance. In today?s increasingly competitive business climate, everyone is forced to operate as efficiently as possible.The advantage to the organization and employees of having a flexible benefit plan is clear. Businesses are not required to pay for services its employees will never seek. For instance, pediatric care was provided across the board...

Find Another Essay On Flexible benefits plan

Compensation And Benefits Essay

3522 words - 14 pages overall business plan. This is achieved by paternalism, financial control, internal and external perception and tax effectiveness.(p. 25). Flexible benefits allows the employer to decide the extent to which it will provide a safety net of coverage or empowering employees by giving them total discretion of the allocation of company provided subsidies. It permits the employer to establish a defined contribution approach to benefits by fixing the

Strategic Compensation Plan Essay

1691 words - 7 pages seriously hinder a company's ability to attract and retain the best personnel. A comprehensive benefit plan can include health insurance, disability insurance, life insurance, retirement plan, flexible compensation (cafeteria plans), and leave from work. Broadly defined, a benefit plan can include other components such as bonuses, service awards, reimbursement of employee educational expenses, and other benefits appropriate to employee

Letter to supervisor

887 words - 4 pages screenings, life insurance, dependent benefits, and unemployment insurance will be deducted from the employee's salary. The medical plan and dental plan will have a wide range of HMO availability. The wellness center can be used to stay fit and remain healthy at little or no cost. This measure will help to reduce the amount of sick days from work and promote a healthy environment to all staff. The flexible work schedule will help reduce the cost of

InterClean Compensation Plan

835 words - 3 pages the new compensation plan for InterClean, Inc. employee's, reasons this pay system will work, the three components of the total rewards package, and describe the plan's benefits to the individual as well as the company.The New Sales Compensation PlanThe compensation plan will provide a basis for establishing an annual salary and incentive compensation to motivate, attract, and retain our employees. The plan is established to set clear guidelines

Flexible Work in Australia

2158 words - 9 pages , but are often internalised as the norm and therefore not questioned. As the assumptions underpinning working practices and expectations become visible they can be challenged.New research by the FWI (2004) identifies mutual benefit for employees and employers finding a flexible way to work. This benefit is seen in employees being more engaged in their jobs and committed to helping their organisations succeed, they are more likely to plan on

Career Development Plan IV: Compensation

1078 words - 4 pages As InterClean embarks on a new strategic direction, upper management is requesting a new compensation plan be created for the new sales team. The new compensation plan will identify benefits for the sales employees and company and components of a total rewards package that will motivate employees to reach their peak performance. InterClean's new sales force compensation plan will include a direct compensation plan, a total rewards package

Developing Good Business Sense

771 words - 3 pages methods and procedures will be needed to achieve your goals? In particular, what kind of operating system-small-batch, mass, or flexible production-will you use?The best way to achieve all of these goals would be to use a flexible production system that allows mass production, but also has the benefits of small-batch production at a lower cost. The flexible production system would involve flexible employees and work teams, as well as computer

Compensation Plan - Interclean

1360 words - 5 pages . Interclean/EnviroTech will provide competitive health and wellness benefits that include medical, dental, and vision coverage. Provide all employees with Employee Assistance Programs (EAP), retirement plan (401K), tuition reimbursement, sick and vacation pay, life insurance, flexible work schedules, and a number of other family-friendly policies to retain employees and achieve full commitment to the organization and goals (Cascio, 2005).Reasons Why


520 words - 2 pages is also very supportive and team-focused. Hours on the job tend to be very flexible, and you never know when you may be working in an office or out on a construction site. Hours run in general from about 7 or 8 a.m to about 5 or 6 p.m on weekdays. However, it is not uncommon to need to work extra hours in order to meet a deadline.To me, the benefits of a career in engineering are plentiful. I plan to go into engineering myself. I think that I

A Comparison of Three Home Improvement Companies

1142 words - 5 pages 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. Before comparing each company’s benefits plan there should be some discussion on the three companies’ history. According to

Compensation and Benefits Plan Executive Summary

881 words - 4 pages children and or a combination of spouse and children.Some of the benefits SMC will provide to new employees after a 90 day probation period will be:MedicalDentalVision401k Savings/Retirement PlanFlexible Time-OffHolidaysEducational AssistanceEmployee Basic Life & AD&DLong-Term Disability CoverageBusiness Casual DressThis benefit summary presents general information. Not all plan provisions, limitations, and exclusions are included in this

Similar Essays

Inter Clean Hrm531 Week5 Essay

1105 words - 4 pages Untitled RUNNING HEAD: CAREER DEVELOPMENT PLAN IV-COMPENSATION PLAN Career Development Plan IV - Compensation Plan University of Phoenix HRM 531 Introduction As InterClean precedes a new direction, upper management is suggesting a new compensation plan for the current sales team. The new compensation plan will identify reasons why the pay system will work, the benefits for the sales employees as well as the company, and

Flexible Work Arrangement Essay

2286 words - 10 pages and difficulty concentrating. This in turn affects corporate profitability when productivity and performance of the employees are decreasing. As the solution flexibility in the workplace should be apply which will benefits both sides. Employees who find their lifestyles satisfying and rewarding because of the ability to balance all commitments will be hardworking, dedicated, and productive. The concept of flexible work time refers to a variety of

Designing Benefit Plan Essay

1423 words - 6 pages effective and targeting the desired results. These items will allow the company to foster an effective compensation program while establish a long-term collaborative working relationship between management, employees and the organization. Benefits Plan Choices The benefit plans design is a flexible plan for an auto dealership. The cost associated the with the flex benefit plan with be based on the premise that the healthcare component is the main

Employee Retention Essay

1137 words - 5 pages significantly in the last 20 years. This phenomenon has created a need for growing interest in workplace policies and programs to enable workers to balance their work and family responsibilities. Corporations seeking to attract new employees and hold onto their existing work force are attempting to be creative with the promise of flexible schedules, flexible benefits, job sharing, onsite day-care facilities, telecommuting, special deals on parental