Employee Benefits 3770 Beardshear Hall

Human Resource Services

Employee Compensation and Benefits

Mike Otis, Associate Director Human Resource Services

Employee Benefits 3770 Beardshear Hall

Human Resource Services

Typical HR Organization

Agenda

Compensation Goals Compensation Approaches Benefits Exercise Employer Challenges General Benefit Concepts Health Benefits Welfare Benefits Retirement Benefits Closing Thoughts

Employee Benefits 3770 Beardshear Hall

Human Resource Services

Typical HR Structure

Employee Benefits 3770 Beardshear Hall

Human Resource Services

Goals of Compensation Plans

Employers are able to attract and retain employees who will contribute to the organizations success Employees feel they are compensated/rewarded fairly/equitably for their efforts and contributions to an organizations success

Employee Benefits 3770 Beardshear Hall

Human Resource Services

Total Compensation
Supportive Corporate Culture Employee Satisfaction Executive Sponsorship

Rewards
Bonus Salary Increases Promotions Equity Offerings Awards Recognition New job assignments Pay Overtime (if in non-exempt
classification)

Benefits
Health Plans Retirement Plans Vacation/ time off Paid Training Working Hours

Salary

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What Factors Determines Pay

Employer considerations Where employers compete for talent local or national What talents an employer competes for the skill/knowledge level How strongly the employer wants to compete Lead the market Meet the market Lag the market

Employee Benefits 3770 Beardshear Hall

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What Factors Determine Pay?

What job duties will be performed determines classification as either Exempt or Non-exempt (Governed by Fair Labor Standards Act (FLSA))

Non-exempt employees.
Eligible for overtime pay for hours worked in excess of 40 Employer must have record of time worked

Exempt employees
Typically executive, professional, or administrative positions Must meet minimum weekly pay guideline Not entitled to overtime

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Rewards/Recognition
Benefits Benefits

Job Classifications Compensation Structure

Compensation Philosophy

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Employer Challenges
Structuring employee benefit packages that meet the needs of a diverse workforce one size does not fit all Helping existing employees understanding the value of their benefits Administering benefit programs costly and timeconsuming. Not a profit-making venture! Continued rising health care costs Limited budgets Benefits average 25% - 40% of Payroll in most organizations Government restrictions/legislation/public policy

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General Concepts
Publicly traded companies will tend to structure pay/benefits that incorporate more equity (stock options, savings match in company stock, bonus tied to company performance, etc) Non-publicly traded companies/organizations will spend more on non-cash incentives Governmental organizations will on average spend more on benefits in lieu of salary

Employee Benefits 3770 Beardshear Hall

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Health Benefits
General types of health coverage
Medical Prescription Drugs Dental Vision

Most health benefit employee contributions will be deducted from pay pre-tax

Employee Benefits 3770 Beardshear Hall

Human Resource Services

May be provided under separate program or combined under a PTO (paid time off) plan with sick days

Vacation

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Human Resource Services

Other Voluntary Benefits

Offered as optional benefits typically employee pays full cost Voluntary benefit programs typically offered at a discount price resulting from group purchasing power Employer may offer the option of payroll deduction Examples are auto/homeowners insurance, pet insurance, computer purchase discounts