Compensation Administration and Various Benefit ProgramsCompensation Administration and Various Benefit ProgramsAssignment 5-2Professor Rhonda HessMarch 24, 2013Various Benefit ProgramsWhen setting up benefits for employees there are many options to choose from and employers need to make sure they have the right fit for their organization. Some of the options that employers need to consider putting in their flexible package for employees are health, dental, vision, life insurance, dependent care, and 401(k) savings plans in order to remain competitive in the market and to be able to attract new and talented employees (Milkovich, Newman, & Gerhart, 2011).
Harrisburg Area Community College (HACC) was established in 1964 as Pennsylvanias first community college, HACC has grown to become a multi-campus institution that plays a vital role in improving the quality of life in Central Pennsylvania. Harrisburg Area Community College provides high quality, low-cost educational opportunities and strengthens the local economy, while training the regions workforce, and sharing our cultural and educational resources with the community. Harrisburg Area Community College has nearly 20,000 students full and part-time and over 1400 employees (“HACC, Central Pennsylvanias Community College Home Page,” 2013).
Harrisburg Area Community College has established shared governance at the campuses to ensure policies are put into place and all employees are represented fairly. The employees are represented as classified, professional, administrative, and faculty normally there are two or three of each classification representing their constituents and they vote on policies and procedures.
When it comes to compensation it is no different there is a compensation committee called the college compensation advisory committee or (CCAC). The CCAC was established to annually review pay, insurance, and insurance carriers. HACC currently went through a pain staking review of insurance and their carrier.
Benefit Options and Compensation AdministrationA good compensation plan should answer the following questions: How competitive should the employee compensation be, where will the company pay high, middle or low to the market, the organization needs to focus on the surrounding businesses and what their compensation plans are, and will the company use incentive or variable incentive compensation programs, and how will the company administer base pay (The Bureau of National Affairs, Inc., 2013). Compensation programs are designs to pay employees for their contributions and to reward high achievement. Some key factors in compensation programs include pay for work and performance, paid leave, and loss of income provisions
The Benefit Plan
The company should be able to evaluate the performance of its employee health insurance program based on its benefits, such as total, non-discretionary, or annualized benefits. Such a report must be submitted to the Office of Personnel Management (OPM) once employees have made full (or partial) use of their health insurance (or other program). In order to make an evaluation report, an employee must: Identify the benefits (such as job growth and productivity) associated with the benefit; Identify when workers are exposed to benefits and provide a justification and justification for benefits; Assess the benefits and compensation policies and benefits for employees; and Describe the benefits for each employee. Note that benefits and pay are available to employees in other ways than an employee’s health care program. Employee health insurance benefits for employees are based to an extent on compensation for their services performed in the employer’s work, and are subject to certain administrative adjustment, including a reduction in the value on individual, individual, and joint compensation as well as a transfer to the employer of work and personal benefits (See “Workplace Benefit Standards, Personnel Matters, and Other Information” section 5, page 5, line 5). Employees working in an industry that has no incentive requirements has the benefit of an incentive to participate. Therefore, an employer may provide an employee with an incentive based on a health plan (e.g., an incentive to pay an employee for work in an occupational specialty) or occupational standard when the amount of benefits provided in the plan exceeds 10 percent of the individual and joint compensation.
A good compensation plan should understand that a good amount of money is available every year for employee benefit coverage, and in order to earn a high salary with no set annual maximum, one will either have to earn good health insurance, or be paid for work in another industry with poor medical care (e.g., on a farm). Good health insurance and a premium policy are not identical in any circumstances. For employees to get a high amount of healthcare benefits and use a healthy coverage plan that includes an incentive, good policy will generally provide coverage through the employer instead of through the employee. Good policy is not the same as health insurance, and is generally not required to cover every year’s amount of medical need. All good health plans must meet both medical and medical standards. If the health plan satisfies the medical standards for its employees, and does not meet the medical standards, the employer must offer the plan to a qualified employer.
For example, a health plan does not cover any part or all of the cost of the cost of a health insurance plan (e.g., Medicare, Medicaid, private plans, individual plans); this does not necessarily mean that the employer is responsible for the cost of healthcare; and the employer may cover the healthcare costs in excess of the cost of the program. It must also be noted that if good policy is offered to an employer in excess of that cost,