3-2-3 Total Rewards Benefits

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Dec 6, 2023

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From a recruitment standpoint, the following have been ranked based on their relevance and worth in an employee's life. Vision Dental Life Insurance FSA EAP Based on the above benefits, health insurance would take priority. As a result, vision and dental insurance would be of highest importance. Dental would be of highest importance as it is extremely expensive to employers. Additionally, employees of a manufacturing plant will most likely benefit the most from this insurance. This type of plan usually provides services such as x-rays, routine check ups, restorative procedures, etc. (Jain, n.d.). According to Simply Insurance, “the average monthly cost of dental insurance in California for one person is $35, or approximately $424 per year” (El, 2023,p13). Average premiums for family plans are increasing tremendously. As a result, employers end up paying, on average, 73% of health insurance premium costs for family coverage and 83% for single coverage. This is equivalent to $16,357 annually for family coverage and $6,584 annually for single coverage per employee (Walker, 2023,p5). Vision would be ranked in second due to employees and management needing excellent vision for employment in the chemical factory. Vision insurance ensures that all employees have access to adequate vision treatment.This is an essential benefit that workers receive, and it may help to attract and keep them. Overall, dental and vision insurance helps employees maintain their health, which can impact overall well-being and productivity. Investing in employee wellness through health insurance benefits can help keep employees healthy and working. Without access to preventative care, employers may end up having more employees out for long periods of time with serious illnesses (Compliance Legal, 2023). Additionally, when employees have the tools to prioritize their health, they become motivated. Due to the dangerous nature of working on a chemical manufacturing plant, life insurance would be next of importance. Life insurance provides financial protection for employees and their families in the event of an employee's death, offering a safety net and peace of mind (Thomas, 2021). Life insurance can be extremely beneficial to all of the workers, allowing them to worry less and work more effectively. Offering life insurance also demonstrates the company's commitment to the well-being of its employees and their families. Next of importance would be a flexible spending account. Flexible spending accounts are highly useful for employees because they allow them to deposit a certain amount that may be used for any medical expenditures that are not covered by the employee's insurance coverage. One of the benefits is the fact that it is tax free. Flexible spending accounts are of least importance compared to the other benefits because FSAs are overly complicated. They often favor people with higher incomes. FSAs are “an expansion of a very inefficient way of subsidizing health insurance” (Scott, 2023,p3). The people who
benefit the most from these accounts are less likely to really need the assistance, while the people who could use the help are less likely to have the option of enrolling in an FSA in the first place. The employee assistance program would be ranked last in terms of retaining employees. EAPs can help employees deal with personal and work-related issues that may negatively impact their job performance and productivity. By providing confidential counseling and support services, EAPs can help employees address these issues and improve their overall well-being, which can ultimately lead to increased job satisfaction and retention (Denovo HRC, 2019). While EAP’s have proven to be beneficial at retaining employees, not all employees may need or profit from this type of benefit. Additionally, the physical risks associated with working in a chemical manufacturing plant may require workers to prioritize healthcare expenses over counseling services (Thomas, 2021). While the EAP may be beneficial to some employees, I would recommend removing this benefit from the list because it does not assist all employees. Employees usually view EAPs as a resource to use once they are already at risk. While most EAPs can provide employees with crisis support, they may not be effective in preventing or managing burnout or other mental health concerns. EAPs can be viewed as reactive, while health insurance and FSA's are proactive in promoting mental and physical health. To replace EAP’s, the manufacturing plant should consider incorporating a retirement plan. This plan should focus on ensuring financial stability for employees even when they decide to leave the company. Incorporating a retirement plan would be beneficial to workers at a chemical manufacturing plant because it would provide them with a retirement savings tool that would enable them to build wealth and prepare for retirement. This is particularly important in the United States, as government social security programs are not necessarily effective at providing retirement support. Offering a retirement plan can increase employee job satisfaction and engagement and this can be especially true in physically demanding industries such as manufacturing. Additionally, with the median employee age in the materials manufacturing industry being 43 years, a retirement plan provides older employees with a way to prepare for retirement and live comfortably after they retire (Mployer Advisor, 2022). References Compliance Legal. (2023, April 26). Should You Offer Employees Health Care Benefits? Www.wolterskluwer.com. https://www.wolterskluwer.com/en/expert-insights/should-you-offer- employees-health-care-benefits Denovo HRC. (2019, November 22). The Differences Between EAPs and Employee Wellness Programs. Denovohrc. https://www.denovohrc.com/single-post/2019/11/22/difference-between-eaps-and- employee-wellness-programs El, S. (2023, April 21). Best Dental Insurance In California (from $35/month). Www.simplyinsurance.com. https://www.simplyinsurance.com/best-dental-insurance-california/#:~:text=The%20average %20monthly%20cost%20of Jain, R. (n.d.). Employer Sponsored Dental Insurance Eases the Pain. BLS.gov. Retrieved November 25, 2023, from https://www.bls.gov/opub/mlr/1988/10/art3full.pdf
Mployer Advisor. (2022). Materials Manufacturing Industry- Employee Benefits Summary. Mployeradvisor.com. https://mployeradvisor.com/state-benefit-guides/employee-benefits-summary-for- the-materials-manufacturing-industry Scott, D. (2023, October 16). Who thought flexible spending accounts were a good idea? Vox. https://www.vox.com/policy/23892823/healthcare-flexible-spending-account-fsa-hsa-wageworks Thomas, M. (2021, May 26). The Importance of Insurance for Chemical Engineers. Www.aiche.org. https://www.aiche.org/chenected/2021/05/importance-insurance-chemical-engineers Walker, E. (2023, July 6). How Much Do Employers Pay for Health Insurance? | PeopleKeep. Www.peoplekeep.com. https://www.peoplekeep.com/blog/cost-of-employer-sponsored-health- insurance
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