Part 1 - For this assignment, students will once again be working with the hypothetical, growing, start-up organization that was developed in the Total Rewards: Compensation course. A review of the requirements is below:
The organization can be in any industry, however it is suggested that the type of industry, general types of positions (i.e. laborers, entry-level, administrative, sales, specific professional positions, etc.) and an overall business strategy (i.e. opening new facilities in other locations, revenue growth, expansions into new markets, etc.) is established prior to beginning Part 2. The "organization" should have at least three different levels of positions: entry-level, management/professional and executive.
For purposes of this assignment, you will be assuming the role of a Benefits Director. As with the prior course:
The information in Part 1 should be included on a "Background" slide that precedes that actual presentation to the Board of Directors (in other words, this for "internal to class purposes" only).
Part 2 - Prepare a PowerPoint presentation for your firm's Board of Directors that summarizes your recommendations for a "Benefits Package" document located in the Toolbox tab for the specific instructors and deliverables for this assignment. Your presentation should be narrated and "audience appropriate". The first draft of this assignment will be due on Day 1 of Week 5 and the final version will be due on Day 7 of Week 5.
Benefits Package Mandated Benefits FICA Social Security Medicare FUTA (Federal Unemployment Tax) Worker's Compensation State Disability 6.2% on first $102,000 earned by individual 1.45% .8% $1.50 for every $100 of total payroll N/A (for purposes of this exercise we will assume this is not applicable) Voluntary Benefits Employee Only Employee + Family $4,000 $2,400 $650 $150 Heath Insurance Premium Coverage *HMO Dental Insurance Vision Insurance Life Insurance - 1 year's salary 401K/403B Tuition Reimbursement Employee Assistance Program Child Care Subsidy Paid Time Off Holidays Short-Term Disability Long-Term Disability $6,000 $3,000 $1,300 $230 $400 6% .7% .5% 3.5% $190 per day $175 per day $550 $1000 *To comply with the Affordable Care Act, the HMO option is the minimum level of coverage that employers must offer Information Sheet The demographics/salary data for your organization are as follows: Type Number Average Salary 4 Executives Management/Professional Entry-Level 20 36 $101,000 $68,000 $26,500 Directions: Based on the information provided regarding benefits and costs, prepare a presentation that describes the benefit package you propose based on a benefits budget equal to 30% of the total salary cost. *Note: Students will need to determine an average employee cost, which will be equal to the sum of average salaries divided by the total number of employees. Requirements for this Benefit Proposal Include: 1) Both mandated and voluntary benefits need to be included. 2) The voluntary benefits offered should be based on market research (i.e. what other "like" companies offer) and the rationale should be provided within the presentation. 3) Those benefits that were not selected as part of the plan should be addressed as well and also include justification for the decision(s). 4) All items should be costed out and a summary should be provided that shows the proposed benefit package does not exceed the 30% of salary budget. Additional notes on this item: a. It is recommended for simplicity to use the average wage of a worker to determine benefit costs versus using the whole population. b. Calculations should be rounded to the nearest whole number. C. Proposals can include cost sharing (i.e. employee and employer both share the cost of a given benefit) 5) The proposal should address how the benefits package is aligned with business objectives. Benefits Package Mandated Benefits FICA Social Security Medicare FUTA (Federal Unemployment Tax) Worker's Compensation State Disability 6.2% on first $102,000 earned by individual 1.45% .8% $1.50 for every $100 of total payroll N/A (for purposes of this exercise we will assume this is not applicable) Voluntary Benefits Employee Only Employee + Family $4,000 $2,400 $650 $150 Heath Insurance Premium Coverage *HMO Dental Insurance Vision Insurance Life Insurance - 1 year's salary 401K/403B Tuition Reimbursement Employee Assistance Program Child Care Subsidy Paid Time Off Holidays Short-Term Disability Long-Term Disability $6,000 $3,000 $1,300 $230 $400 6% .7% .5% 3.5% $190 per day $175 per day $550 $1000 *To comply with the Affordable Care Act, the HMO option is the minimum level of coverage that employers must offer Information Sheet The demographics/salary data for your organization are as follows: Type Number Average Salary 4 Executives Management/Professional Entry-Level 20 36 $101,000 $68,000 $26,500 Directions: Based on the information provided regarding benefits and costs, prepare a presentation that describes the benefit package you propose based on a benefits budget equal to 30% of the total salary cost. *Note: Students will need to determine an average employee cost, which will be equal to the sum of average salaries divided by the total number of employees. Requirements for this Benefit Proposal Include: 1) Both mandated and voluntary benefits need to be included. 2) The voluntary benefits offered should be based on market research (i.e. what other "like" companies offer) and the rationale should be provided within the presentation. 3) Those benefits that were not selected as part of the plan should be addressed as well and also include justification for the decision(s). 4) All items should be costed out and a summary should be provided that shows the proposed benefit package does not exceed the 30% of salary budget. Additional notes on this item: a. It is recommended for simplicity to use the average wage of a worker to determine benefit costs versus using the whole population. b. Calculations should be rounded to the nearest whole number. C. Proposals can include cost sharing (i.e. employee and employer both share the cost of a given benefit) 5) The proposal should address how the benefits package is aligned with business objectives
