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Benefits

Benefits, like those stated earlier, are often referred to as “the hidden paycheck,” and can add upwards of 35% cost to an eligible employee’s total cost to the organization. Some benefit expenses such as Social Security are mandated by law, but most of an organization’s benefit expense is optional and up to the organization to determine.

In today’s economy, benefits are a necessary part of any healthcare organization’s budget. In addition to pay, benefits are a critical factor in recruiting and retaining employees. However, these benefits comprise a significant expense to the organization; therefore, the HR department must carefully consider all benefit options and provide those that maximize the expense.

In addition, once the benefit is implemented, its cost must be regularly monitored in order to ensure it is still accomplishing its objective without creating an expense that is too burdensome on either the organization or the employee. For example, HR must carefully monitor the cost of its health insurance plan. If the features of the plan are too generous (too many things are covered or the deductible and co-pays are too low), the cost of the health plan may escalate to the point of burdening the organization’s ability to afford the plan. There is not a specific amount an organization should spend on its health insurance; rather, it must establish a cost range that reflects what it believes to be an amount that is valued by the employee and affordable to the organization and then monitor the plan’s change from that amount over time and adjust the plan design in order to continue to fall within that range.

Be sure to review this week’s resources carefully. You are expected to apply the information from these resources when you prepare your assignments.

Weekly Resources and Assignments

Review the resources from the Course Resources link, located in the top navigation bar, to prepare for this week’s assignments. The resources may include textbook reading assignments, journal articles, websites, links to tools or software, videos, handouts, rubrics, etc.

Week 6 – Assignment: Facilitate a Chart of Your Organization’s Benefits

Using your current or past organization’s benefits package, prepare a chart of all benefits offered (even those that you may not be currently enrolled). If you aren’t currently employed, contact the HR department of a local healthcare provider and request a listing of their benefits offering. In lieu of contacting the HR department, benefits are often listed in the career section of the organization’s website. Your chart should include:

Each benefit

· those required by law

· those provided to employees where enrollment is mandatory

· those provided to employees where enrollment is voluntary

·  The eligibility for each benefit

·  The cost per employee for each benefit

·  The level of employee participation in the cost (if any)

·  The organization’s expense as a percentage of payroll

An example of the chart is below:

Benefit Name

Why provided (law, competition, etc.)

Enrollment mandatory / voluntary

Who is eligible

Total cost per employee

Cost sharing % with employee

Organization cost as a % of payroll

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2. Organizational Benefits Chart

Write a recommendation for any modifications you think would enhance the benefits offered to employees, justifying your recommendation with either cost or employee retention/satisfaction reasons.

Length: 2 pages, including the chart, not including title and reference pages

References: Include a minimum of 4 scholarly resources

Your document and chart should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic.

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