...Employee engagement From Wikipedia, the free encyclopedia Jump to: navigation, search Employee engagement, also called worker engagement, is a business management concept. An "engaged employee" is one who is fully involved in, and enthusiastic about their work, and thus will act in a way that furthers their organization's interests. According to Scarlett Surveys, "Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization that profoundly influences their willingness to learn and perform at work". Thus engagement is distinctively different from employee satisfaction, motivation and organisational culture. Origins Employee Engagement is the extent to which employee commitment, both emotional and intellectual, exists relative to accomplishing the work, mission, and vision of the organisation. Engagement can be seen as a heightened level of ownership where each employee wants to do whatever they can for the benefit of their internal and external customers, and for the success of the organization as a whole. Employee engagement was described in the academic literature by Schmidt et al. (1993). A modernised version of job satisfaction, Schmidt et al.'s influential definition of engagement was "an employee's involvement with, commitment to, and satisfaction with work. Employee engagement is a part of employee retention." This integrates the classic constructs of job satisfaction (Smith et al., 1969)...
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...With the high costs of disengagement and employee turnover, it’s a little wonder that companies are looking for ways to optimize the stages of their employee life cycle. “The cost of disengagement is staggering – it leads to more than $450 billion in lost profits in the U.S. annually!” as per Gallup’s State Of The American Workplace: Employee Engagement Insights For U.S. Business Leaders. According to experts, when it comes to the cost of employee turnover the, “estimates run as high as 150 percent of annual salary!” The stages of an employee life cycle are defined or named differently across organizations, but this is how employee life cycle looks like in most companies: While analyzing insights from our clients, at 9Lenses we do a “Tenure Segmentation,” which categorizes the employee life cycle into Less than One year, 1-2 years, 2-4 years and 4+ year. We then track employee engagement through these stages of an employee life cycle using passive engagement measures. But before we move on any further, here are two theories that you need to know. These theories have been proved time and time again by researches and most of our data-sets confirm them too: 1. Engagement is Related to Tenure. Studies have consistently revealed that larger organizations struggle with employee engagement through various stages. “The highest employee engagement occurs in companies employing less than 10 people.” This may be reflected in the growing number of people leaving large companies to...
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...Employee Benefits Offering benefits to an employee is always beneficial to both the organization and the employee. The benefits offered are essential to the livelihood of the employee in a way that they feel comfortable both at home with their families as well as at work. Therefore, benefits offered by an organization become a deciding factor in whether the employees are satisfied or whether they will stay in the organization. The law has clearly outlined some benefits that the employee must receive, and there are others that are at the discretion of the employer (Samuel Estreicher, 2010). Compensation of workers and their social security is a mandatory benefit whereas medical covers and retirement benefits are optional. It is worth noting that failure to adhere to those outlined by law has severe implications to the organization which can lead to heavy penalties. Below the paper has outlined several examples of benefits. Social Security Fund It is the obligation of every employer to register their employees under the social security fund. In this scheme, the employee is required to contribute money for their later benefits from the government. Subsequently, the employer is also required to pay a portion of the amount in form of taxes. The employee can later receive retirement benefits from this fund (Mamorsky, 2014). Compensation of workers Employers should comply with the employment and labor laws that guard the employees. These laws prevent the employees from discrimination...
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...Common Employee Benefit Plans . Primary Categories of Benefit Plans • Legally Required Benefits 1. Workers Compensation offers insurance benefits to employees who become ill or are injured at work. This insurance is different in every state and is dictated at the state level. In addition, some states require employers to purchase disability insurance. 2. Unemployment Insurance provides compensation to employees who lose their job for no fault of their own. It is different in every state and is mandated at the state level. The first step is to register the business with the state’s workforce agency and that is where you’ll learn what the state requirement is. 3. Social Security Taxes are required to be paid on employees. The current rate for SS tax is 6.2%, which both the employee and the employer pays, plus an additional 1.45% for Medicare tax. 4. Family and Medical Leave is a benefit that is sometimes confusing for employees. What the Family and Medical Leave Act (FMLA) requires is for the employer to provide 12 weeks of unpaid time off to employees during a 12 month period of time. The leave protects the employee from losing their job to care for themselves or an immediate family member, including the birth of a child or child care. The leave is unpaid unless the employer offers paid leave as part of an optional benefits package. 5. COBRA Benefits are required for employers with 20 or more employees who are subject to the Consolidated Omnibus...
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...MFRS 119 Employee Benefits MFRS 119 define employee benefits as to prescribe the accounting and disclosure by employers for employee benefits. Thus, it replaces MASB Approved Accounting Standard IAS 19 Accounting for Retirement Benefits in the Financial Statements of Employees. The major changes from old IAS 19 are set out in the Basis for Conclusions. The Standard does not deal with reporting by employee benefit plans (see FRS 126 Accounting and Reporting by Retirement Benefit Plans ). From MFRS 119, there are four categories of employee benefits to be identified which are: (a) short-term employee benefits, such as wages, salaries and social security contributions, paid annual leave and paid sick leave, profit-sharing and bonuses (if payable within twelve months of the end of the period) and non-monetary benefits (such as medical care, housing, cars and free or subsidised goods or services) for current employees; (b) post-employment benefits such as pensions, other retirement benefits, post-employment life insurance and post-employment medical care; (c) other long-term employee benefits, including long-service leave or sabbatical leave, jubilee or other long-service benefits, long-term disability benefits and, if they are payable twelve months or more after the end of the period, profit-sharing, bonuses and deferred compensation; and (d) termination benefits. 3.1 Accounting Policy Used on MFRS 119 Employee Benefits for AZRB AZRB act or implement the employee benefits...
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...Week Eight: Discussion 1: “Employee Benefits.” Students will respond to the following: Discuss how benefits contribute to an overall compensation plan. The total wage cost of an employee to the organization is far more than the pay rate of that employee. Likewise, the total compensation reward of the employee exceeds his or her take-home pay. Total compensation consists partly of the pay of the employee and partly of a set of other rewards that are loosely called benefits. The addition of these items to the compensation package considerably complicates all aspects of the administration of compensation --from the compensation strategy to the implementation of the plan. Benefits are unlike base pay in that they are awarded for different objectives, they are not periodically given, they are oftentimes deferred rather than current, and they require different types of administration. Since pay and benefits together make up the wage costs of the organization, there is a trade-off between direct pay and benefits. This is an extremely important point and helps to explain some of the lack of wage increases in the US (Atchison, T. J., Belcher, D. W. & Thomsen, D. J., 2010). . Benefits are a hodgepodge of programs that provide employees with a number of forms of rewards beyond their wages. Besides fringe benefits, this area has been called such things as indirect compensation, wage supplements, non-wage benefits, social wages, supplementary employee remuneration, supplementary...
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...Team B Employee Benefits Policy Business Writing GEB 3213 Fall 2014 Blue Waves Consulting Employment Policy According to Johnny Laurent, the Vice president and general manager for Sage North America “The best way for a company to increase competitiveness is to invest in the employees.” (Sage HRMS, n.d., para 2). Why are some companies succeeding while others are going out of business? What are the extraordinary difference between a struggling company and a successful organization? Perhaps, the question that needs to be asked is what defines the soul of a company? The answer is its people. Individuals are the principal assets of every organization. For most businesses, the workforce is considered largest expenditure in resources. At Blue Waves Consulting LLC, we truly believe that our employees are the most important elements that provide success to the organization. This is the reason why our organization is taking into account of the employee related expenses as solid investments, which can yield a healthy return for the future of the company. We call this investment the Return on Employee Investment (ROEI). This type of investment will assist a company in providing the best possible work environment in attaining the employee and their allegiance to the firm. The utilization of ROIE will bolster the company’s effectiveness, competitive edge, profit and success. The workforce today is confronted with changing economic trends, such as the implementation of the Patient...
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...Assignment: Employee Benefit Dolphinette Williams HRM/240 November 21, 2010 Karen M. Wilson MEMO TO: Upper Management FROM: Dolphinette Williams RE: Employee Benefit Package DATE: November 21, 2010 I propose this benefit package plan for all current and new hire employees. Offering these benefits will keep the talent we have and recruitment of new talent will be easier. Because the company is a small company we will have to consider the cost of each benefit for the company. I suggest that each of the benefits recommended in this package have thoroughly been researched and the cost would be minimum for the company, keeping in mind what would be cost effective for our employees too. I recommend that we offer an HMO plan, because this plan cost the company less and less out of pocket money for our employees. The company would pay the cost for the employees and the employees would pay a cost to insure their family members. I recommend that we offer the employee two weeks paid vacation after one full year of employment with the company. We would offer an additional week after five years of service with the company. Employees should give a two week notice to get approval for vacation time. Employees should be allowed to carry over one week of vacation time not accumulating more than four weeks of vacation in any given year. I would also recommend four hours of sick leave accrual for every 40 hours worked in a pay period. Sick leave is recommended because employees...
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...Employers provide two types of benefits namely those required by law like social security and workers compensation and discretionary benefits ones offered to compensate employees such as insurance covers and retirement benefits (Martoccio, 2011). When planning employee benefits, organizations consider factors such as the role that the benefits play in attracting and retaining employees, how they impact on driving employee commitment, how it communicates the organizations recognition of employees personal and family life, the benefits competitiveness in comparison to other employers and how the benefits impact on profitability and appropriate levels of staffing (Turner, 2011). Employers seek to lure in and retain employees. Employees carefully consider the benefits in addition to the pay that an organization offers before accepting job offers. Reports suggest employees rank other factors such as the location, security of tenure, its impact on personal and family life, opportunities for career growth and the work environment lower than benefits and pay considerations in employment decision making (Lineberry & Trumble, 2000). Some of the benefits that employers consider vital include medical plans, retirement plans, employer matched retirement savings plan, paid vacation time and holidays, sick leave and short term disability among others (Lineberry & Trumble, 2000). In designing benefits programs, employers also take note of the fact that the benefits play a role in encouraging...
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...EMPLOYEE BENEFITS & SERVICES While today’s organizations are recognizing employee diversity , most are finding that their personal services benefits packages to be either non-existent or out of date considering the new world market. But with the implementation of new laws and tax breaks for both employer and employee, many are moving toward programs that involve options that benefit the structure as a whole. As organizations compete in today’s marketplace , what become clear is that they must offer products and services that not only appeal to a variety of their employees and customers, but routinely maneuver through with a creative style where its organization strategies will lead to better perspectives of the organization’s sensitivity and its self-worth. In an article from C. Richard Weylman, in an article “Changes in Today’s Marketplace” he state “To win more customers and retain existing ones requires the relentless pursuit of improvement in every aspect of your business. If improvement is not a priority an agenda item for you and your team, the risk of becoming mediocre is very real. Complacency leads to mediocrity which ultimately leads to disastrous results in business as well as in life.” Upon reading this quote in one of my first thoughts was immediately focused upon the employees, their educational skills, experience, and culture. Second, I thought of the process of improvement and how might a business create an environment of improvement by advancing...
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...EMPLOYEE BENEFIT PACKAGE PROPOSAL The following is intended to represent a summary of NASSCO benefits. By implementing the correct SWP (Strategic Workforce Planning Systems) by ultimate objective is to understand our workforce dynamics so that talent can be managed proactively to ensure that future business goals are met. Should there be conflict between this information and that appearing in plan documents or summary plan descriptions, provisions in the plans will apply. NASSCO may alter or discontinue these benefits at any time, with or without notice. The following are proposed benefits available for our workforce. Health care A variety of medical and dental options are available to cover the majority of your health care needs and to provide you and your eligible dependents with coverage for extraordinary expenses. •When Coverage Begins •Coverage for you and your eligible dependents begins on your date of hire. •Annual Enrollment If you are enrolled in one of the medical/dental plans NASSCO offers, you may change to one of the other medical/dental plans during the annual enrollment period which is two weeks in November each year. Once you change your medical or dental plan or both to another medical/dental plan, your new coverage becomes effective the following January. •New Dependents To have coverage from the time you acquire a new dependent, you must enroll him or her within 31 days following the date you acquire the new dependent. Coverage becomes...
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...Employee benefits Depending on the business, meeting employer business goals may be highly dependent on having the right human capital and keeping workers satisfied and motivated. Often, attraction and retention of employees are key business issues. The discussion of employer goals for retirement benefits below and the data provided demonstrate that employers are viewing the provision of these benefits as a key business issue, with attraction, retention and being competitive being the three top goals. Employee benefits help attract and retain good employees. For many individuals, the availability of satisfactory health benefits is essential if they are to consider employment, and health benefits are often a consideration in leaving jobs as well. This may change in 2014, after the implementation of the Affordable Care Act. Employers can improve the net welfare of their employees through offering benefits. Employee benefits are often tax-effective, so that a dollar spent on benefits gets more than a dollar of value for employees. Benefits provided on a group basis are generally more cost-effective than individual insurance. In addition, group purchase allows all employees to be covered, not just those in good health. Well-structured and -managed defined benefit plans generally get better investment returns than many defined contribution participants, and allow more dollars of retirement benefits to be delivered per dollar paid in. Benefits paid as guaranteed life income allow...
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...comprehensive employee benefit package for hotel managers for the year of 2012. This memo will also cover other positions under hotel manager. The employees, who receive a copy of this memo, will receive a benefit package in the mail within the next seven to ten days in the mail. In the benefit package, employees will find an introductory letter that will explain what is in the benefit package. The first thing I want to inform the employees of is that not many of the benefits from the past have been changed, but some benefits have been implemented to help provide more benefits to our employees. The first new benefit is a flexible spending account for the managers. This flexible spending account will allow the managers to buy accommodations to better suit the hotel guest. Any manager will be able to buy a need for a hotel guest like different shampoos or any other need a guest may need. There will be more allowable sick time for employees, which mostly around the flu season, we understand that many employees get sick or their kids get sick. This is a family environment and we understand that family is important. Paid vacation days will be given to the employees that have been with the company for a total of one year. The first year of employment will be a one week paid vacation, two years will be ten days and three years will be two weeks. The employee that is ready for vacation time must ask the manager a week in advance to make note that the employee is off for vacation...
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...Pay structure in a company depends upon several factors. E.g… wage settlements. Labour market situation. Company’s nature and size. etc. Pay structure consists of certain grades. Scale and range of pay in each scale. Each scale has aminimun and a maximum limit. Jobs places within a particular grade carry the same value though the actual pay in a grade depends upon length of service and or performance of the employee. Pay structure in India generally consists of the following components. 1- Basic wage/salary 2-Dearness allowance (D.A.) and other allowances. 3- Bonus and other incentives. 4- fringe benefits or perquisites. Hard variables • Salary • Augmented pay- overtime, extra pay, one time stuff • Indirect pay –things needed for work, uniform allowance, etc. • Parks pay – discount on company’s products, etc. Soft variables • Opportunity for advancement • Opportunity for growth • Psychic income – doing personally meaningful work • Quality of life – workplace flexibility, work-life balance • The X-factor- special individual variables like bringing a dog to work. 1. Basic Wage The basic wage provides the foundation of pay pocket. It is a price for services renderd. It varies according to mental and physical requirements of the job as measured through job evaluation. In India, basic wage has been influences by statutory minimum wage, wage settlements, and awards of wage boards tribunals pay commissions, etc. (a) Minimum wage- ...
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...Many employers offer their employees benefit packages as part of their total compensation program. Often these benefit packages range in value from 30 to 40 percent above the employee’s base salary. A very interesting question is: Why don’t companies simply pay their employees 30-40% more salary and have the employee select their own benefits? Based on some research and my own experience, I believe that there are four main reasons that employers provide benefits programs to their employees. The four reasons are: - Lower cost – The main reason that employers offer its employees benefits programs lies in the following quote: “A decade ago, many employers adopted benefit plans, in lieu of paying cash, simply for the tax benefits.” (Smith, 2007) According to the article, there is a significant difference in the tax collected on salaries compared to the tax collected on the same value of benefits. - Incentives – Many employees offer benefit programs as a way of enticing people to join their organization. A healthy benefit package is equally as important as salary dollars. - Work satisfaction - Staff are happier with an employer paid and managed benefit program. This type of program reduces stress on employees by taking over the responsibility of benefit program design. - Staff morale – Happier staff means greater staff morale which means more productivity. There are many reasons that employers might offer their employees company managed and paid benefit programs...
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