Discretionary benefits

strategic compensation
a human resource management approach

1. Hafiz Rizwan 75 Kashif Mehboob 77 Luqman Mehmood 74 kaleem-ullah 32 mansoor subhani 41 Discretionary Benefits

2. Discretionary Benefits The common has discretionary powers to awards extra funds. Discretionary benefits fall into three board categories: Protection programs Paid time off Services

3. Discretionary benefits originated in the 1940s and 1950s During both World War II and the Korean War Not increase employees core compensation But it did not place restrictions on companies employee benefits expenditures Welfare practices Anything for the comfort and improvement, intellectual or social, of the employees, over and above wages paid, which is not a necessity of the industry nor required by law.

4. Welfare practices Employees welfare benefits to promote good management and to enhance worker productivity. National labor relation act of 1935 which legitimized bargaining for employees benefits. Union workers tends to participate more in benefits plan than do nonunion employees (92% versus 72%)

5. Components of discretionary benefits Several benefits practices fall into the category of discretionary employee benefits. Income protection program: Short term disability insurance Long term disability insurance

6. Life Insurance Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money I exchange for a premium, upon the death of an insured person.

7. Kinds of life insurance Term life insurance Whole life insurance Universal life insurance

8. Kinds of life insurance Term life insurance: Term life is a policy that covers you for a set period of time, typically, 10, 15, 20, or 30 years. Whole life insurance: Provide permanent coverage that last a lifetime as well as guaranteed premiums and a guaranteed cash value.

9. Kinds of life insurance Universal life insurance: Provides protection to employees’ beneficiaries based on the insurance feature of term life insurance and a more flexible savings or cash accumulation plan than found in whole life insurance plan. Retirement programs A system for saving money for use during retirement.

10. Health protection programs: Health Protection is a term used to encompass a set of activities within the Public Health function. It involves: Ensuring the safety and quality of food, water and the general environment Preventing the transmission of communicable diseases Managing outbreaks and the other incidents which threaten the public health

11. Paid time-off The second type of discretionary benefit is paid time off. Paid time off or personal time off (PTO) is a policy in some employee handbooks that provides a bank of hours in which the employer pools sick days, vacation days, and personal days that allows employees to use as the need or desire arises. Paid time off policies compensate employees when they are not performing their primary work duties.

12. Types of paid time-off The major types of paid time off are: Holidays Vacation Sick leave Personal leave Funeral leave Lunch period Integrated paid time off Sabbatical leave Volunteerism

13. Types of paid time-off Holidays: A paid holiday is time off from work for rest and recreation on a publicly recognized holiday. Vacation Time: A paid, extended period of recreation and fun away from work. Sick Time: Paid absence from work for medical care, personal illness or injury, or the care of an ill member of the employee’s immediate family.

14. Types of paid time-off   Personal Days: A paid day of leave from work for reasons other than illness or vacation, taken at the employee’s discretion. Sympathy Leave/Bereavement: Paid absence from work granted when a death occurs in an employee’s immediate family.  Immediate family members are the employee’s spouse, parents, grandparents, brothers, sisters, children, and members of the same household.

15. Types of paid time-off Integrated paid time off: An integrated paid time off (PTO) policy combines vacation, sick time and personal time into a single bank of days for employees to use to take paid time off from work. Study/Sabbatical leave: Paid professional leave for the purpose of pursuing study/education related to the job.

16. Types of paid time-off Volunteerism/Community Service: Paid time off to participate in community programs and other non-profit volunteer activities.

17. Services EMPLOYEE ASSISTANCE PROGRAMS : Employee assistance programs(EAP) help employees cope with such personal problems that may impair their job performance as alcohol or drug abuse, domestic violence, the emotional impact of AIDS and other diseases, clinical depression, and eating disorders. FAMILY ASSISTANCE PROGRAMS: Family assistance programs help employees provide Elder Care and Child Care..

18. Services Flexible Scheduling and leave: This allows employees the leeway to take off during work hours to care for relatives or react to emergencies. Day Care: Day care is another possible benefit. Some companies subsidize Child or Elder day care in community-based centers. Tuition reimbursement: Companies offer Tuition reimbursement programs to promote their employees ‘education.

19. Services TRANSPORTATION SERVICES: Some employers sponsor Transportation Services programs that help bring employees to the workplace and back home by using more energy-efficient forms of transportation.

20. OUTPLACEMENT ASSISTANCE Some companies provide technical and emotional support through Outplacement assistance to employees who bare being laid or terminated. A variety of factors leads to employee termination. Those best suited to outplacement assistance programs include: Layoffs due to economic hardship Mergers and acquisition Company reorganizations Changes in management Plant closing or relocation Elimination of specific positions, often the result of changes in technology

21. Outplacement Assistance Programs WELLNESS PROGRAMS: In 1980s, employers began sponsoring Wellness programs to promote and maintain employees ‘physical and psychological health. Stress management programs: Can help employees cope with many factors inside and outside work that contribute to stress.

22. Outplacement Assistance Programs Weight control and nutrition programs: Are designed to educate employees about proper nutrition and weight loss, both are critical to good health. FINANCIAL EDUCATION Programs: Financial education programs provide employees with the resources for managing personal budgets and long-term savings (e.g. for retirement).

23. BENEFITS AND COST OF DISCRETIONARY BENEFITS Discretionary benefits, like core compensation, can contribute to a company's competitive advantage for the reasons discussed earlier (e.g. tax advantages and recruiting the best-qualified candidates). Management can use discretionary benefit offering to promote particular employees behaviors that have strategic value..

24. BENEFITS AND COST OF DISCRETIONARY BENEFITS A company can use discretionary benefits to distinguished itself from the competition. Finally, the tax advantages offered companies from offering particular discretionary benefits has strategic value.