What is the difference between compensation, benefits and perks.
Question – What is the difference between compensation, benefits and perks. How do these 3 benefit employees in an organization?
Your answer is a 1-2-page reaction/research paper which must be double spaced, APA 6th edition, research from 2-3 journal articles.
Employee benefits are non-financial compensation provided to an employee as part of the employment contract. Employee benefits may be required by law (depending on the risk associated with the job or industry and the laws of the country where the job is held) or provided voluntarily by the employer. There are several benefits required by law. From an employee’s point of view, a good package of benefits increases the value they receive from their working life and contribute to their own health and that of their family.
In the last ten years, employers have increasingly provided less traditional employee benefits that provide benefit to the employee’s life as a whole rather than just their working life – examples of these are childcare, healthy foods in the office and subsidized gym memberships. Due to increased competition for good candidates, the benefits an employer provides for a particular position will be an important factor in attracting applicants.
From an employer’s point of view, benefits help staff remain happy and committed, reducing the chance of them leaving to work elsewhere. The first being Social Security which puts a flat payroll tax on employees and employers. The unemployment insurance is a payroll tax that varies from state to state and is based off of experience rating which is the number of employees that a company has laid off in the past and how much it cost in providing them with unemployment benefit. Workers compensation must provide coverage according to state requirements. While family and medical leave is twelve weeks of unpaid leave due to childbirth, adoption or serious illness.
By far, the most important benefit for the average person is medical insurance and with the growing debates around health reform this topic is becoming more important in companies. Policies generally cover three kinds of basic types of medical expenses: hospital, surgical, and doctor visits. While others offer more such as dental, vision, and others. Some states, however, have stricter limits and requirements than federal and even the insurance companies place restrictions on their policies that it often makes it difficult to find and keep coverage that would best suit the person. As part of the total compensation paid to employees, benefits serve as a function similar to pay. Benefits contribute to attracting, retraining, and motivating employees. The variety of possible benefits also helps employers tailor their compensation to the kinds of employees they need.
1. Social Security
2. Unemployment Insurance
3. Workers Compensation
4. Unpaid Family Medical Leave
1. Paid Leave: vacation, holidays, and sick leave. Organizations often provide paid leave for jury duty, funeral of family member, and military duty. Time off to vote or donate blood.
2. Medical: Typically cover hospital procedures, surgical procedures, and visits to physicians. Plans can also include dental, eye, birthing centers, and prescription programs.
3. Flexible Spending Account
4. Life Insurance
5. Disability Insurance
6. Long-term Care Insurance
7. Retirement Plans (A). Defined-benefit plans (B). Defined-contribution plans (C). Cash Balance Plan
8. Family-Friendly Benefits (A). Family Leave (B). Child Care (C). College Savings (D). Elder Care
9. Other Benefits (A). Tuition Reimbursement (B). On-site gyms, company-sponsored softball team (C). On-site cafeteria