Question

Human resource Mangament, benefits and compensation:

Merit / Performance Pay

Basic Life Insurance

Benefit Voucher for Gym Membership, Company Cafeteria and/or Child Care

Benefit Voucher for Tuition Reimbursement / Professional Development

Dental Insurance

Federal Unemployment

Flexible Spending Account

Health Insurance

Incentive Pay for Extra Duties

Long Term Disability

Medicare

Paid Time Off (4 weeks or 20 days)

Retirement – 401k

Salary

Short Term Disability

Social Security

State Unemployment

Vision Insurance

Worker’s Compensation

Based upon the information above, place each item in a specific Category. An Item can only be placed in one category.

The categories are:

1. BASE PAY
2. OTHER CASH / INCOME BENEFITS
3. INSURANCE BENEFITS
4. RETIREMENT BENEFITS
5. TIME OFF BENEFITS
6. MANDATED BENEFITS
7. SPECIAL BENEFITS

Answer 1

Human Resource Management plays an significant part in an Organization. The primary objective of them is to motivate, retain and attract the employees and to meet the Organization goals. As "Human" are the greatest asset of an Organization so to motivate them "Reward Management" plays a very vital role as most employees work to get a decent salary and benefits due to the family responsibility and also to have a good standard of living. This can only be done if they get rewards by employer to its employees. So, Let us discuss what Compensation and Benefits exactly mean?

Compensation and Benefits are described as a monetary and non-monetary value given by the Organization to its employees which can be determined by their performances and this will lead to increase in employee loyalty towards work and satisfaction in them. Compensation and Benefits can be categorized in two ways : Monetary and Non- Monetary. So, Monetary Benefits are created to reward employees for there excellent performance or tenure in an organization. Monetary benefits are in terms of hard cash and can be taken as Bonuses, Salaries etc. On the other hand, Non-Monetary Benefits does not involve any cash transaction as they are non-cash benefits given by employer to its employees such as Medical Benefits, Psychological benefits etc.

Objectives of Compensation and Benefits :

There has lot of objectives to provide Compensation and Benefits to the employees, but the Basic Objectives are as follows:

• It is helpful to attract the top talent amongst the employee especially those who have a great performance towards their work
• To provide a good pay to deserving employees as per the market value
• To boost the motivation of the employees
• Appraise the performances of the employees and promote them according to their performance
• To have a performance structure in an Organization which would help to judge the employees as per the performance.
• Maintain the salary slabs of employees so that they can be reviewed accordingly.

Managing the Compensation and Benefits is a Complex task as it is includes salary distribution, insurance, allowances and many more Benefits to keep the firm control on the cost of an Organization as well as workforce.

Now, we will discuss about various Compensation and Benefits and which category they fall in:

1. Merit/ Performance Pay : It is a performance related pay in terms of Bonus which depends on the target achieved by the employee or who are performing effectively set by the measurable standards of an Organization. It comes under "Base Pay" category.
2. Basic Life Insurance : It is an Insurance which covers employees as well as family lives. It is contract between an insurance company and the insurer who agrees to pay the money on a regular basis. It falls under the category of "Insurance Benefits"
3. Benefit Voucher for Gym Membership, Company Cafeteria and/or Child Care : These are special benefits given to employees to boost the morale. This falls under "Special Benefits" Category.
4. Benefit Voucher for Tuition Reimbursement and Professional Development : It comes in "Special Benefits" Category.
5. Dental Insurance : Dental Insurance is an coverage for employees to protect them against dental cost. It comes under "Insurance Benefits" category
6. Federal Unemployment : It falls under "MANDATED BENEFITS" category
7. Flexible Spending Account : It comes under Mandated benefits category.
8. Health Insurance: It covers overall health for Employees and there dependents. It falls under "Insurance Benefits".
9. Incentive Pay for Extra Duties : It comes under "OTHER CASH / INCOME BENEFITS".
10. Long Term Disability: It comes under "Special Benefits"
11. Medicare : It is Medical Benefits scheme for Employees and there dependents. It comes under " Mandated Benefits"
12. Paid Time Off (4 weeks or 20 days) : When the Organization grant leave to the employee on monthly basis and no pay is deducted. It comes under "Time Off" category
13. Retirement – 401k : It falls under "Retirement benefits" given to employees after retirement.
14. Salary : It is an amount given to employee for the services they offer to the organization. It is "Base Pay"
15. Short Term Disability : Benefit given to employee who are short term disable. It falls under "SPECIAL BENEFITS" category.
16. Social Security : It falls in "RETIREMENT BENEFITS" category.
17. State Unemployment : It falls under "MANDATED BENEFITS" category
18. Vision Insurance : Vision Insurance is the insurance which covers eye care treatment and it comes under "Insurance Benefits".
19. Worker’s Compensation : It falls under "BASE PAY" category. It is the amount which is paid against the work done by the worker.