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Employee benefits

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Yash Vardhan Lohia

This presentation provides an overview of employee benefits. It defines employee benefits as additional compensation beyond wages that employees receive from their employer. The document then categorizes and describes common types of benefits, including those required by law, voluntary health insurance plans, retirement benefits, time-off benefits, survivor benefits, and flexible benefit plans. It also discusses the typical costs of benefits for employers, highlighting how costs have increased annually, and outlines advantages like employee retention and disadvantages like increased legal and administrative fees.

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EMPLOYEE BENEFITS
Hello! This presentation will be conducted by: Yash Vardhan Lohia, Pharmaceutics. Himanshu Zade, Quality Assurance. Ravin Sompura, Pharmaceutical Technology.
WHAT ARE EMPLOYEE BENEFITS?
“ The additional considerations or benefits which an employee gets from its company, more than just hourly wages.
EMPLOYEE BENEFIT PROGRAMS • Part of a Total Compensation. • Provided by the Government. • Incentives. • Part of Cost of doing Business. • Indirect Compensation.
FACTORS OF GROWTH OF BENEFIT • Discouraging Unions. • Non taxable Benefits. • Easier to negotiate wages. • Attitude of general public.
Employee benefits
OBJECTIVE OF BENEFIT PROGRAMS • Improve Morale. • Meet Health and Safety Needs. • Attract Good Employees. • Reduce Turnover. • Reduce Unionism. • Maintain a Competitive Position. • Enhance the Organization's Image.
CATEGORIES OF EMPLOYEE BENEFITS
BENEFITS REQUIRED BY LAW Legally required benefits/Mandatory benefits • Social Security. • Unemployment Compensation. • Worker’s Compensation. • Family and Worker Leave Act.
VOLUNTARY BENEFITS Health Insurance • Traditional Health Insurance. • Health Maintenance Organization. (HMO) • Preferred Provider Organization. (PPO) • Point-of-Service. (POS) • Consumer Driven Health Plan. (CDHP)
HEALTH PLANS BY EMPLOYERS Conventional 1% HMO 17% PPO 55% POS 10% HDHP/ CDHP 17%
RETIREMENT BENEFITS • Pension plans. i. Contributory (joint pay) ii. Non-Contributory (employer pays) • Pre-retirement counseling.
DEFINED BENEFIT PLAN • Amount is Specifically Defined. • Years of Service Required. • Average Earnings During Certain Years. • Age at Retirement.
DEFINED CONTRIBUTION PLAN • Basis Upon Which the Employer Pays. • Paid to Thrift Plan, IRA, etc. • Benefits Depends Upon Accumulation.
PAYMENT FOR TIME NOT WORKED • Holidays and Vacations. • Disability ( Short and Long Term) • Sick leave.
SURVIVOR BENEFITS • Group life Insurance. • Travel Insurance.
EMPLOYEE SERVICES AND FAMILY-FRIENDLY PLANS • Employee assistance program • Counseling services • Child care • Elder care • Food services • Health services • Legal services • Credit unions • Educational assistance plans • Financial planning • Housing and moving expenses • Transportation pooling/parking • Purchasing assistance • Social and recreational services • Awards
FLEXIBLE BENEFIT PLANS Benefit plan that enable individual employees to choose the benefits that are best suited to their particular needs. • Employees Choose. • Cafeteria Plans. • Cost Attached. • Some Government Requirements.
THE EFFECTS OF BENEFITS
COST RELATED TO BENEFIT • Cost incurred is 30-40% of the Annual Wages. • The fastest growing part of the total compensation.
71,839$Total amount of money spent on an Employee 31%Of the Employee’s Salary. 50,000$Annual salary of the Employee
So, if a company has 4000 employees, what does that amount become?
372,00,000$That’s a big number, isn’t it?
TYPICAL COST OF BENEFITS TYPES OF BENEFITS TOTAL PERCENTAGE, ALL COMPANIES Payments for vacations, sick leave, holidays, etc. 12.0% Legally required payments 10.0 % Medical and medically related benefit payments 10.0 % Retirement and savings (employer’s share) 7.0 % Paid rest periods, lunch periods, etc. 3.0 % Miscellaneous benefits 1.0% Life insurance .5% Total employee benefits as percent of payroll 43.5%
HEALTH PLAN COSTS Average Annual Health Plan Costs Per Employee COST YEAR
INCREASE IN COST OF HEALTHCARE • Federal Regulation • Changes in Pricing • Advances in Medicine • Malpractice Insurance • Labor Costs • Over Utilization of Facilities • Elder Care • Transplants/AIDS/Other
Does Benefits Help?
ADVANTAGES • Helps retain the quality employees. • Exemption of taxes by providing insurance. • Employees stay happy with the current pay. • Offering amenities at a lower cost. • Insurance provisions allow employees to be more productive.
RESULT OF EMPLOYEE BENEFIT BALANCEWORK LIFE
DISADVANTAGES • Difficulties in keeping benefits equal for different job positions. • Any single mistake in benefits might lead to lawsuit or regulatory fine. • Offering amenities requires legal help, which in turn increases legal fees. • Benefits need a better and bigger administration to handle the employees.
Thanks! Any questions? Feel free to ask!

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Employee benefits

  • 2. Hello! This presentation will be conducted by: Yash Vardhan Lohia, Pharmaceutics. Himanshu Zade, Quality Assurance. Ravin Sompura, Pharmaceutical Technology.
  • 4. “ The additional considerations or benefits which an employee gets from its company, more than just hourly wages.
  • 5. EMPLOYEE BENEFIT PROGRAMS • Part of a Total Compensation. • Provided by the Government. • Incentives. • Part of Cost of doing Business. • Indirect Compensation.
  • 6. FACTORS OF GROWTH OF BENEFIT • Discouraging Unions. • Non taxable Benefits. • Easier to negotiate wages. • Attitude of general public.
  • 8. OBJECTIVE OF BENEFIT PROGRAMS • Improve Morale. • Meet Health and Safety Needs. • Attract Good Employees. • Reduce Turnover. • Reduce Unionism. • Maintain a Competitive Position. • Enhance the Organization's Image.
  • 10. BENEFITS REQUIRED BY LAW Legally required benefits/Mandatory benefits • Social Security. • Unemployment Compensation. • Worker’s Compensation. • Family and Worker Leave Act.
  • 11. VOLUNTARY BENEFITS Health Insurance • Traditional Health Insurance. • Health Maintenance Organization. (HMO) • Preferred Provider Organization. (PPO) • Point-of-Service. (POS) • Consumer Driven Health Plan. (CDHP)
  • 12. HEALTH PLANS BY EMPLOYERS Conventional 1% HMO 17% PPO 55% POS 10% HDHP/ CDHP 17%
  • 13. RETIREMENT BENEFITS • Pension plans. i. Contributory (joint pay) ii. Non-Contributory (employer pays) • Pre-retirement counseling.
  • 14. DEFINED BENEFIT PLAN • Amount is Specifically Defined. • Years of Service Required. • Average Earnings During Certain Years. • Age at Retirement.
  • 15. DEFINED CONTRIBUTION PLAN • Basis Upon Which the Employer Pays. • Paid to Thrift Plan, IRA, etc. • Benefits Depends Upon Accumulation.
  • 16. PAYMENT FOR TIME NOT WORKED • Holidays and Vacations. • Disability ( Short and Long Term) • Sick leave.
  • 17. SURVIVOR BENEFITS • Group life Insurance. • Travel Insurance.
  • 18. EMPLOYEE SERVICES AND FAMILY-FRIENDLY PLANS • Employee assistance program • Counseling services • Child care • Elder care • Food services • Health services • Legal services • Credit unions • Educational assistance plans • Financial planning • Housing and moving expenses • Transportation pooling/parking • Purchasing assistance • Social and recreational services • Awards
  • 19. FLEXIBLE BENEFIT PLANS Benefit plan that enable individual employees to choose the benefits that are best suited to their particular needs. • Employees Choose. • Cafeteria Plans. • Cost Attached. • Some Government Requirements.
  • 21. COST RELATED TO BENEFIT • Cost incurred is 30-40% of the Annual Wages. • The fastest growing part of the total compensation.
  • 22. 71,839$Total amount of money spent on an Employee 31%Of the Employee’s Salary. 50,000$Annual salary of the Employee
  • 23. So, if a company has 4000 employees, what does that amount become?
  • 24. 372,00,000$That’s a big number, isn’t it?
  • 25. TYPICAL COST OF BENEFITS TYPES OF BENEFITS TOTAL PERCENTAGE, ALL COMPANIES Payments for vacations, sick leave, holidays, etc. 12.0% Legally required payments 10.0 % Medical and medically related benefit payments 10.0 % Retirement and savings (employer’s share) 7.0 % Paid rest periods, lunch periods, etc. 3.0 % Miscellaneous benefits 1.0% Life insurance .5% Total employee benefits as percent of payroll 43.5%
  • 26. HEALTH PLAN COSTS Average Annual Health Plan Costs Per Employee COST YEAR
  • 27. INCREASE IN COST OF HEALTHCARE • Federal Regulation • Changes in Pricing • Advances in Medicine • Malpractice Insurance • Labor Costs • Over Utilization of Facilities • Elder Care • Transplants/AIDS/Other
  • 29. ADVANTAGES • Helps retain the quality employees. • Exemption of taxes by providing insurance. • Employees stay happy with the current pay. • Offering amenities at a lower cost. • Insurance provisions allow employees to be more productive.
  • 30. RESULT OF EMPLOYEE BENEFIT BALANCEWORK LIFE
  • 31. DISADVANTAGES • Difficulties in keeping benefits equal for different job positions. • Any single mistake in benefits might lead to lawsuit or regulatory fine. • Offering amenities requires legal help, which in turn increases legal fees. • Benefits need a better and bigger administration to handle the employees.