YANGON UNIVERSITY OF
ECONOMICS
CHAPTER 10: INDIRECT
FINANCIAL
COMPENSATION
(EMPLOYEE BENEFITS)
CONTENTS
Employee service benefits
Premium pay benefit practice
Voluntary benefits
Various employee benefit laws
Customized benefit plans
Global issues in employee benefits
Communicating information about
benefits packages
Third Year Sec(A) Group-2
NAME Roll No.
Ma Thet Thet Htwe III Comm-3
Ma Nandar Lwin III Comm-6
Mg Pyaesone Phyo III Comm-13
Ma Hnin Myint Mo Aye III Comm-26
Ma Yunn Phuu Myat Min III Comm-28
Ma Cho Than Thar III Comm-32
Ma Linn Latt Myoe Thwe III Comm-39
Ma Mya Mon Phoo III Comm-44
Ma San Shwe Yee Htun III Comm-45
Ma Htet Aprial Lwin III Comm-65
Ma Yoon Thinzar Naing III Comm-78
EMPLOYEE SERVICES
Various resources,programs and support offered by an organization to it employees to
enhance their job satisfaction,and overall work experience.
Examples- Childcare,Educational Assistance,Scholarships for dependents,relocation benefits and
benefit for domestic partners.
Offering on-side daycare facilities
parents to have their children nearby , making it more convenied for them to
balance work and family responsibilities.
To reduce absenteeism,protect employee productivity,rentention & recuiting,
promote the advancement of women and make firm an employer of choice.
Employees in an organization can take various forms
Tuition reimbursement programs
Training opportunities and
Professional development initiatives
Improve employee retention
Employees can select any course pertinent to their job or that would be helpful in helping them
advance professionally and become accomplished employees.
Firms that supply food services or subsidized cafeteria services.
Convenience
Encourages social interaction among colleagues during meals and
can contribute to a healthier work environment.
Hope to gain in return is increased productivity,less wasted time,enhanced
employee,morale.
Supports the education of employee’s children,save some financial burdens.
Contributing to their overall job satisfaction and loyalty to the organization.
Providing educational opportunities for dependents can be viewed as an
investment in the organization long-term success and stability of the
employees.
Company-paid shipments of household goods & temporary living expenses
Covering all or portion of the real estate costs associated with buying a new
home
Selling the previously occupied home
The primary reasons for declining a relocation were housing and mortage
concerns,followed by family issues/ties and spouses’ or partners’ jobs.
The house market is undoubtedly a leading factor behind the decline in
relocation.
Domestic partner benefits typically provide healthcare and other
perks to unmarried couples including same-sex couples.
Couples can often access the same benefits through marriage.
A number of companies are reimbursing gay and lesbian employees
for the additional taxes they incur for their same
Under the law and treated marriage between same-sex individuals as less
worthy than marriage between heterosexual couples.
PREMIUM PAY
Compensation paid to employees for working long periods of time or working under
dangerous or undesirable conditions.
Provided as additional compension per hour and is used extensively in the healthcare and
technical occupations.
Example-Pay overtime,work on Sunday and holidays.
Hazard Pay Shift differential
Additional money paid to employees
Additional pay provided to for the inconvenience of working less-
employees who work under desirable hours.
extremely dangerous Based on percentage of employee’s
conditions. base rate.
Eg-Graveyard shift,Swing shift
VOLUNTARY BENEFITS
Benefits that are 100 percent paid by the employee but the employer typically pays the
administrative cost.
Many firms are moving away from discretionary benefits
where the cost is shouldered totally or partially by the
company to voluntary benefits.
Employees gain because their premiums typically reflect
group discount and thus are lower than the employees
could obtain on their own.
Health
Wealth accumulation
Four categories:
Security
Unique personal interests or requirements
EMPLOYEE BENEFITS
LEGISLATION
Employee
EmployeeRetirement
RetirementIncome
IncomeSecurity
SecurityAct
Act(ERISA)
(ERISA)
Consolided
ConsolidedOmnibus
OmnibusBudget
BudgetReconciliation
ReconciliationAct
Act(COBRA)
(COBRA)
Older
OlderWorkers
WorkersBenefit
BenefitProtection
ProtectionAct
Act(OWBPA)
(OWBPA)
Health
HealthInsurance
InsurancePortability
Portabilityand
andAccountability
AccountabilityAct
Act
Family
Familyand
andMedical
MedicalLeave
LeaveAct
Act
Pension
PensionProtection
ProtectionAct
Act
Patient
PatientProtection
Protectionand
andAffordable
AffordableCare
CareAct
Act
Customized Benefit Plan
Benefit plan that permits employees to
make yearly selections to largely determine
yearly selections to largely determine their
benefit package by choosing between cash
and numerous benefit.
Based on tradition,budget & management
choices.
Four generation of workers now in the
workplace,customization and flexibility
become important in developing a benefit
package.
Freedom to select highly desired benefits would
seem to maximize the value of individual 's
compensation.
Global Customized Benefits
Organization especially those operating globally,should tailor their employee benefit plan
to accommodate cultural differences and legal requirements in each country.
“Three basic groups of global benefits”
Government provided Government-mandated Voluntarily provided
Health care Provided by employers By the company
Retirement benefits & because of Law discretion of the employer
Umployment insurance etc
Communicating Information about the Benefits Package
Effective communication of employee benefits is crucial for organization to attract and
retain a high–quality workforce.
It can help a firm recuit and retain a top–quality workforce.
Often organization do not have to improve benefits to keep their best employees rather
than workers need to fully understand the benefit that are provided them.
Workplace Flexibility(Work-Life Balance)
Flextime
Compressed Workweek
Job Sharing
Two-in-a-Box
Telecommuting
Part-Time Work
Work place Flexibility (Work-Life Balance)
Effective work-life balance programs focus on solving any
personal issues that can detract from an employee’s work.
More employees are requesting workplace flexible benefits
to achieve a better work and life balance.
Workplace flexibility is high an employee’s lists of company
benefits desired and continues to grow. It has moved from
being a great benefit that a company can after to a business
necessity.
Flexible work policies are an economic imperative.
Flextime is the practice of permitting employees to
Flextime choose their own working hours, within certain
limitations.
Flexible time is the period within which employees
may vary their schedules.
Bring better health to employees by reducing employee stress levels.
Work the same number of hours per day as they would on a standard
schedule.
Benefit of flextime These hours within what is called a bandwidth, which is the maximum
length of the workday.
Core time is that part of the day when all employees must be present.
Flexible hours are highly valued in today’s society, providing a flexible
work schedule gives employees an edge in recruiting new employees
and retaining highly qualified ones.
Compressed workweek
Any arrangement of work hours that permits employees to fulfill their
work obligation in fewer days than the typical five-day workweek.
ADVANTAGES DISADVANTAGES
Working under this arrangement,
employees get greater job satisfaction Employees become fatigued
and it offers the potential for better from working longer hours as a
use of leisure time for family life,
negative effect and these result
personal business and recreation.
in lower product quality and
This can result as increased reduce customer service.
productivity and reduced turnover
and absenteeism.
Job Sharing
Two part-time people split the duties of one job in some agreed-on manner and are
paid according to their contributions.
It is an attractive option to people who want to work fewer than 40hours per week.
This allows for greater flexibility and work-life balance for the employees as well as
continuity for the employer.
It can be attractive to people,particularly women who raise their families,individuals
pursuing further education.
It benefits broader range of skills the partners bring to the job.
However,the partners must be compatible,have good communication skills and have a
bond of trust with their manager.
Managers need additional oversight for two employees rather than one.
Two- in- a- box
This is a management approach where two
individuals often with complementary skills
or perspectives,share the responsibilities
of a single leadership role.
This is particularly applied in executive
leadership.
Unlike job sharing,it is a full time job for both
executives.
Therefore,this approach highlight the need for clear communication
and a strong partnership between two leaders.
This is a management approach where two individuals often with
complementary skills or perspectives,share the responsibilities of a single
leadership role.
This is particularly applied in executive leadership.
Unlike job sharing,it is a full time job for both executives.
ADVANTAGES
If one leader is unavailable,the other can step in,providing continuity
and reducing risk.It can create a supportive environment and learning
from each others.
Two leaders bring different view points which can lead to better
decision-making.
DISADVANTAGES
There may be role ambiguity which might not always be clear to the team
who has the final say on certain matters,causing confusion and lack of
direction.
Telecommuting
It is a work arrangement whereby employees,called “teleworkers” or
“telecommuters”
are able to remain at home and perform their work using computers and
other electronic devices that connect them with their office.
ADVANTAGES
can increase worker productivity & improve job satisfaction &
loyalty.
permit people to work just about anywhere
telecommuting employees more satisfied with their jobs than those
working in office because of fewer interruptions,less company politics
& less face to face communication.
eliminates the need for office space.
Part-time work
reluctantly accepted a low-paying job until a full-time career
break occurred
increasing highly educated professionals are choosing part-
time opportunities in their fields to address both job and
personal needs
employees can request to do more or less travel or client
service.
THANK YOU
FOR YOUR ATTENTION !
