Compensation and Benefits

 Modern Benefit Packages and Company Strategy  Compensation Programs  Financial Benefits  Class Participation Overview

Strategically creating Benefit Packages Strategically Choosing the Benefit Offering Organization’s Objectives Benefit Value Annual Benefit Audit Needs of the Employees Legal Requirements Competitive Offering

Modern Benefits Increased Medical Coverage To part-time and retirees as well Time for elder care More and longer vacations and holidays Increased pension coverage and earlier vesting Child care, dog walking, free laundry (rare) Modern Benefit Packages

 Ontario Public Service  Google Examples of Current Company Benefit Packages

 Employment Assistance Programs (EAP)  Relocation Programs  Outplacement Compensation Programs

 On-The-Job Breaks  Sick Leave  Holiday and vacation days Time Off

Educational assistance Excellent employee retention tool Increases loyalty and motivation Leads to increased productivity Valuable to both employers and employees According to participating employees: More than 96% reported that the education they received was valuable and a good use of their organizations’ resources More than 94% said the knowledge they acquired was useful to their jobs 77% claimed that the program was the reason they pursued furthering their academic/professional development Tuition Assistance Value Study conducted by EdLink, the ROI Institute and Capella University

Discount Plans: Employees are offered the company’s products or services at a discount. Example: Southwest Airlines offers their employees a 100% discount off flights for themselves, their family, and a number for friends. Financial services Credit Unions: The employees can invest money into a special account with other employees. The company controls the account and tries to create interest on the total amounted which is then given back to the employees depending on how much they have invested.

Stock Options:  Employees can choose to purchase company stock  Stock options may work to attract certain employees an act as a retention tool  Recession has caused a shift towards restricted stock units (RSUs) and away from options  RSUs have greater security and simplicity that employees enjoy Financial services

Salary Continuation Plans Short-term Disability Plan: Usually reserved for full time workers Credited with a number of days to be used as sick leave Long-term Disability Insurance : Usually reserved for full time workers A certain amount of years needs to be put into the job for this type of insurance to kick in. A plan is made so that the employee will receive a portion of their pay (usually 50 to 60 percent) until they are healthy again or even till they reach retirement

Employment Income Security Severance Pay: Under the Canadian Labour Code an employee is entitled to 2 weeks’ regular pay Under some contracts severance pay can extend to 6 or even 12 months Guaranteed Annual Wage (GAW): Employee is assured some minimal amount of work or pay generally around 30 hours a week or 1500 hours a year Supplemental Unemployment Benefits (SUB): When an employee is unemployed, they are covered with an income almost equal to their previous earnings, paid with money that was previously put into the fund Generally will continue as long as the SUB is solvent

 IB spreads the financial risks encountered by employees and their families.  Life Insurance  99% of Canadian companies provide a group insurance program for all of their employees  Two types of plans  Funds  Health Insurance Plans  Canadian citizens and landed immigrants are covered by provincial health care programs.  Employers offer supplementary health insurance plans.  Canada vs. USA Insurance Benefits

In Canada the avg. firm spends 6.3% of its total payroll costs on government and private pension plans.  Defined Benefits Plans  Employee receives a fixed dollar amount as a pension depending on age and length of service  Safe and predictable  Defined Contribution Plans  Employer and employee contribute together (non-contributory plan & contributory plan)  Funds are invested in secure funds Retirement Security

Class Participation  Every company wants to hire the prestigious and magnificent Spencer Brooks; he has agreed to answer any questions for the next 2 minutes before you make him a job offer  Take 3 minutes in your groups and using only what we have discussed today, we want you to try to create the best benefits package possible so that Spencer chooses to work for your company!

Bibliography  Benefits Canada. (2011, November 3). Tuition assistance benefits employers. Retrieved May 31, 2013, from Benefits Canada: employers  Brumberg, B. (2013). Restricted Stock, Performance Shares, And Trends In Equity Compensation. Retrieved June 1, 2013, from myStockOptions:  Canada Revenue Agency. (2002, September 4). Benefits to Employees - Stock Options. Retrieved May 31, 2013, from Canada Revenue Agency:  Fowler, J. (2012, September 25). Companies That Offer Unique Employee Discounts. Retrieved May 31, 2013, from Investopdedia: unique-employee-discounts.aspx.  Heathfield, S. (2013). Tuition Assistance. Retrieved May 31, 2013, from About.com: Human Resources:  Luffman, J. (2003, March 21). Taking stock of equity compensation. Retrieved May 31, 2013, from Statistics Canada:

Bibliography (2013, may). Retrieved from.labour.gov.: Nathan, S. (2013). Retrieved from employeebenefits: Susan Nathan. (2013). Retrieved from employeebenefits.: