Social benefit plans

Origins of Social Benefits

They are due to the following factors:

The high taxes assigned to companies, which began to locate and explore legal means of making deductions from their tax obligations Labor and social security legislation imposed by the government Union requirements Government wage controls, mainly in the case of wages high (either in the regulation of official indices of salary readjustment due to complaint or union agreement) or in the controls carried out indirectly in the price adjustments of products or services New attitude of the employee regarding social benefits.

The rapid growth of such programs is due to issues such as:

A change in the attitude of employees Union demands Government requirements Competition that forces employers with each other to compete for the best benefits for their employees Periodic wage controls that, while freezing wages, allow the offering of services as substitutes for employees salary increases.

The organization shall maintain the basic principle, the comparison of the costs of the service with the compensation of tangible or intangible benefit for the company.

The offsets we are talking about come in various forms, many of which are not subject to strict quantification:

a more effective recruitment an improvement in morale and loyalty low turnover and low absenteeism good public relations possible influences of present and potential unions reducing the possibility of government intervention in these spheres outside of the one it already has, as established by the Labor Contract Law in its Article 103, remuneration is the consideration that the worker must receive as a result of the employment contract.

There are remunerative and non-remunerative concepts.

For the purposes of this law, remuneration is understood as the consideration that the worker must receive as a result of the employment contract. said remuneration may not be less than the minimum and living wage. The employer owes the worker the remuneration, even if he does not provide services, for the mere circumstance of having made his workforce available to him.

Everything that constitutes remuneration:

It has contributions and contributions (Retirement, Social Work, etc.) It is taken into account to settle Christmas bonuses, vacations, etc. They are seizable.

Everything that does not constitute remuneration:

It does not have contributions and contributions It is not taken into account to settle bonuses, vacations, etc. They are not subject to attachment

Social benefits are called social security benefits of a legal nature, non-remunerative, non-monetary, not accumulative or substitutable in money, which the employer provides to the worker by himself or through a third party, which aims to improve the quality of life of the dependent or his dependent family.

The following benefits are social benefits:

The company's canteen services Lunch vouchers, up to a maximum limit per work day set by the enforcement authority Food vouchers and food baskets granted through companies authorized by the enforcement authority, up to a Maximum limit of 20% of the gross remuneration of each worker included in the collective bargaining agreement and up to 10% in the case of workers not covered. The reimbursement of expenses for medicines and medical and dental expenses of the worker and his family assumed the employer, upon presentation of duly documented vouchers issued by pharmacies, doctors or dentists, the provision of work clothes and any other element related to the worker's clothing and equipment for exclusive use in the performance of their tasks.Reimbursements documented with vouchers for daycare and / or maternity ward expenses, used by workers with children up to 6 years of age when the company does not have these facilities The provision of school supplies and overalls for the worker's children granted to the start of the school period. The granting or duly documented payment of training or specialization courses or seminars. The payment of duly documented funeral expenses of family members in charge of the worker. House accommodation. Accident insurance. Medical insurance parallel to social security. Dental services. Plans for the acquisition of shares. Plans to promote sports activities. Special benefits for vacation periods. Benefits for the birth of a child, marriage, death, etc.

With benefit programs, morale is created and stimulated; and can be classified under the function of integration of employees within the company. They function more as maintenance factors than motivational factors.

A considerable part of the total remuneration is made up of social services and social benefits, which constitute staff maintenance costs.

There are two types of remuneration:

Direct Remuneration

It is the salary that is paid to the individual in relation to the position held.

Indirect Remuneration

They are benefits and social services, which are generally common to all employees, regardless of the position held, although there are some differences for the different levels.

Nature of employee services

The company provides its employees with conveniences, advantages and services to save efforts and worries for them, they are all expenses assigned to the employee benefits program outside of regular salaries and direct monetary incentives related to production.

Among the most prominent categories of such benefits are the following:

pay for time not worked: include payments for rest periods, lunch, illness, vacations, holidays, absences for personal reasons protection from hazards: for the purpose of covering certain employee eventualities such as risk of illness, accidents, unemployment, disability permanent, old age and death. Employee services: such services include housing, food, recreation, etc. The organizations provide them through cafeteria provision programs, legal advice, scholarships, low-cost loans, medical examinations, etc… Legally required payments: legally there are expenses that companies must make in the area of employee protection, regardless of their own policies, for example: employment compensation, group insurance for workers,insurance for old age and for the protection of survivors, social security and medical care.

These benefits are financed totally or partially by the company, constituting a means of motivation for employees and achieving a satisfactory level of morale and productivity.

Types of Social Benefits

The benefits and social services plans are designed to assist employment in three areas of your life:

In the exercise of the position: bonuses, life insurance, production awards, etc. Outside the position, but within the company: rest, restaurant, bar, transportation, etc. Outside the company, that is, in the community: recreation, community activities, etc.

Classification of service plans and social benefits

They can be classified as follows:

Regarding your demands

Legal benefits: are those required by the country's labor legislation or by collective bargaining agreements such as:

Supplementary annual salaryVacationsPensionInsurance of accidents at workFamily salarySickness benefitMaternity salary OvertimeAdditional for night work

Some benefits are paid by the company and others are paid by the provident entities.

Spontaneous benefits: they are freely granted by the company since they are not required by law or by collective bargaining.

They are also known as fringe benefits, they include:

bonuses group life insurancerestauranttransportloanshospital medical assistance, differentiated through an agreement, supplementation of pension

Regarding its nature:

Monetary benefits:

Benefits granted in money, through payroll and generate derived social obligations.

ACVacationsPensionPension supplementationPensionLoan plansPreparation of salaries for prolonged absences due to illnessReimbursement or subsidy for medications.

Non-monetary benefits:

They are those offered in the form of services, advantages or facilities for users, such as:

Restaurant service Medical-hospital-dental assistance Social service and counseling Club or union Collective life insurance Driving or transportation from home to the company and vice versa Mobile entry and exit hours for office staff

Regarding your goals

They can be classified as welfare, recreational and supplementary.

Assistance Plans:

They are benefits that seek to provide the employee and his family with certain conditions of security and foresight in cases of unforeseen situations or emergencies, which are often beyond his control or will. They include:

Medical assistance Dental assistance Financial assistance through loans Social service Pension supplementation Salary supplementation during long absences due to illness Group life insurance Personal accident insurance

Recreational plans:

They are the services and benefits that seek to provide the employee with conditions of rest, fun, recreation, mental hygiene or constructive leisure. In some cases, these benefits also extend to the employee's family. They include:

Guild or club Rest areas at work intervals Environmental music Sports activities Walks and scheduled excursions.

Supplemental Plans:

They are services and benefits that seek to provide employees with certain facilities, conveniences and utilities to improve their quality of life. They include:

Transportation or driving of personnel Restaurant in the workplace Private parking for employees Mobile working hours Cooperative of food or food products Banking agency in the workplace Mutual association

Basics of employee benefit programs

It is essential that those mentioned make a contribution to the organization, at least equal to the costs they generate.

In addition to this guiding principle, there are other generalizations that are applicable and should be considered:

It is convenient to carry out surveys or opinion polls, prior to the implementation of any plan, to save unnecessary expenses. The Organization as such, must consider individual needs, but in a group, avoiding and even favoring free choice. The benefit will be have as wide coverage as possible. The Organization establishes plans according to the needs of the majority of its employees Benefit Vs Obligation: it should be avoided that employees consider these benefits as an obligation of the Company Cost Evaluation: the costs of benefit plans are very high, they must be planned and calculated in advance and take into account the actual needs of the employees.

Problems of a welfare program

Accusation of paternalism Excessively high costs Loss of vitality as a habit Keeps workers less productive Negligence regarding other personnel functions New sources of complaints and grievances Questionable relationships between motivation and productivity

Relationship between social benefit plans and human needs

Social benefit plans are related to certain needs of the human being that companies seek to cover so that employees achieve the satisfaction of both hygienic and environmental and motivational needs.

Types of Social Benefits

Protection Programs

In the life of any of us there are several prevailing risks whose most important effect is the reduction of income.

Pensions

Pension plans are intended to provide income to that part of the population that, having provided their services to society through an organization, can no longer do so due to circumstances that disable them, such as: age, disability physics, etc.

The Law regulates the forms of recognition of these factors and the forms of payment of the pension service.

Coffee shop

The justification for a restaurant in the company lies in the improvement of nutrition and consequently in the morale of the employees, and indirectly in their productivity.

living place

Turnover reduction and absenteeism Morale boost Security boost

Program Costs Ability to Pay Actual Need Union Power Tax Consideration Public Relations Social Responsibility Workforce Reaction

There are certain principles that the company can take into account to determine the social benefit plans to implement or develop.

Return on investment principle

All benefits must bring contribution to the organization, so that they are equal to their costs, or at least are intended to compensate or reduce them by bringing some return.

Principle of Mutual Responsibility

The costing of social benefits must be mutual responsibility. The costs of the benefits must be shared between the organization and the benefited employees.

Some are paid entirely by the company, such as: social service, compensation for time not worked, etc.

Others are prorated: they are paid proportionally between the company and the employees, such as restaurant, transportation, etc.

Others are paid entirely by the employee: subsidized life insurance, consumer cooperative, etc.

It is recommended that the benefits have some cost to the employees, otherwise they may be considered mandatory or of inferior quality.

Other Principles

Employee benefits must satisfy some real need. They must be confined to activities in which the group is more efficient than the individual. The benefit must be spread over a broader base of people. The granting of the benefit must avoid overtones of benevolent paternalism. Benefit costs must be calculable and well funded to avoid political implications.

Requirements That Social Benefit Plans Must Meet

Be beneficial in the long term, for the organization and for the employees Be applicable on economic-financial bases that can be sustained Be planned and costed between the organization and the employees, in terms of time, money, tasks and especially the administration of services.

Objectives of a Social Benefits Plan

The benefits seek to bring advantages, both for the organization and for the employees and also extend to the community.

For the organization

raises employee morale reduces turnover and absenteeism raises employee loyalty increases employee well-being facilitates employee recruitment and retention increases productivity and decreases unit cost work demonstrates company guidelines and purposes towards employees reduces hassles and complaints promotes public relations with the community

For employees

offers non-monetary benefits offers assistance in solving personal problems increases job satisfaction contributes to personal development and individual well-being offers means to improve relationships between employees reduces feelings of insecurity offers additional opportunities to ensure social status offers extra compensation improves relationships with the company reduces causes of dissatisfaction

Social Benefit Plans Project

Organization Diagnosis

FUESMEN is the graduate school for nuclear medicine and radiodiagnosis. Its mission is to promote the applications of nuclear technology to contribute to the well-being of the Argentine people.

It consists of a professional bureaucratic structure, where the coordination mechanism is the standardization of processes, its key point being the operational nucleus.

The problem detected is the increase in the level of absenteeism of administrative personnel in the last year.

When we interviewed the Personnel Manager (HR), he told us that initially the alternative of deducting those days from the annual leave was raised (a fact that violates the employment contract law), but the expected results were not obtained, due to that the rate of absenteeism did not register variations of considerable importance.

Deeply analyzing, through surveys (Annex I), we observe that the administrative staff is 230 people, of which 70% (161) are women between 20 and 40 years old, of which 60.24% (97) have family responsibilities.

Family Charges and Social Benefits

As a starting point we use the absenteeism values that the Personnel Department (HR) gave us, which indicate that the average monthly absenteeism of the entire organization is 12% (they are equivalent to 3 absences per month) and the annual average is of 12.27%.

These levels of absenteeism cause us the following consequences:

Delay in the tasks of the Organization Economic losses Deficiency in the quality of customer service Demotivation of staff Deterioration of the organizational image

Project formulation

Objective of the project

Reduce the rate of absenteeism

Improve customer service

Project Goals

Reduce the Organization's average monthly absenteeism to 8% (2 absences) and the average annual absenteeism to 9.27%.

Reduce the Absenteeism of Administrative staff to 4% per month (1 absence) and 3.7% per year.

Reduce complaints towards staff and the Organization by 95%

Strategies

to. Make an agreement with Geriatric

This strategy is aimed at staff who have elderly relatives and have no one to leave them with. It is important to note that it is not a boarding school, but they would be there during work hours. It already has specialized personnel for care, as well as medical coverage.

The most important requirement is that it is in the immediate vicinity of the Organization.

The form of financing is through service exchanges. For each person that the nursing home cares for, they are given two tests or a simple study.

b. Agreement with Maternal Garden

This strategy is aimed at staff who have minor children and have no one to leave them with.

The most important requirement is that it is in the immediate vicinity of the Organization.

The form of financing is that the Organization will pay for the kindergarten for those mothers who have children, the funds will be deducted from the budget of the Personnel Department (HR), who within the budget has an item called benefit plans.

c. Implement a Psychological Cabinet

This strategy is for all staff.

It will be an obligation to attend at least once a month. The reason for the implementation of this office is due to the type of patients being cared for and the special treatment that must be had with them, as well as a way to keep track of staff stress.

To implement this point of the project, it is not necessary to hire personnel, but to perform a redistribution of tasks, since the specialized personnel are in the Organization.

d. Provide vaccinations for employees and their families

It is a way to prevent future absences.

It does not imply a monetary outlay for the company, because the Government of the Province distributes them for free.

and. Employee training

This strategy is aimed at all administrative staff

It is done so that everyone knows the global functioning of the Organization. In this way, in case of someone's absence, it can easily be replaced.

This also makes it easier to make a replacement diagram.

It does not imply a monetary outlay for the company, since the form of training will be through staff rotation. To be more specific, the one who works 5 days as a telephone operator will spend 4 days in her position and 1 in another.

The organization and management of the project will be in charge only of the Personnel Department (HR).

Regarding the Control, it will be carried out jointly between the Line and the Personnel Department.

Types of controls to be implemented

A priori control:

When the project is implemented, all employees will be notified in writing of the services acquired, keeping a copy in which they are given the option of not accepting them. This notification informs that the services are free for staff.

Concomitant control:

The line supervisor makes reports every two weeks on project progress and deviations.

Final check:

The results are compared with those set out in the goals, and possible deviations are observed.

Project management plan

Group conclusion

We consider that one of the advantages that a company obtains with an attractive package of Social Benefits is the possibility of attracting, hiring and retaining the personnel that interests it.

These packages also affect turnover rates, meaning that many employees will feel reluctant to give up benefits they consider important.

The important objectives that are met by indirect compensation in an organization are the following:

Reduction in turnover rates Discouragement of conflict-prone movements Advantages for recruiting staff Satisfaction of employee goals

Regarding costs, we consider that the most convenient criterion to apply is that of mutual participation, even when the company decides to absorb a greater portion of them.

In this way, the objective is met that the employee takes them at their fair value and not as an application by the company towards them.

To determine the application of a Social Benefits Plan, it must be taken into account that the benefits they produce are higher than the costs they cause in the company.

Companies have made efforts to expand social benefit plans to avoid labor disputes, cope with employee pressure, and remain competitive in the job market. Sometimes employees want benefits and services rather than pay increases.

Bibliography

National Constitution Labor Contract LawSrauus, George and Sayles, Leonard, Administration Problems. Editorial Prentice Hall. IV Edition. Mexico. 1985 Weerther Jr. William and Davis Keith. Personnel management and human resources. Editorial McGraw-Hill Interamericana Editores SA V Edition. Mexico. 2000.Chiavenato, Idalberto. Human resources management. McGraw-Hill. II Edition. Mexico. 1994. Davis, Keith and Newstrom, John W. Human Behavior at Work. Educational Programs SA de CV 8th Edition. Mexico. 1991 Works from previous years.

Annex I

We are working to improve our services to the public, and among them are you.

In order to get to know each other a little more and optimize labor relations, we have devised this little questionnaire. We ask that you complete it and return it to your supervisor.

The results of the questionnaire will be available to everyone, once the data has been processed.

We hope you will collaborate with us.