Benefits : The Changing Nature Of Benefits

912 WordsMay 2, 20174 Pages
Benefits: The Changing Nature of Benefits Project Report Annya Johnson Human Resources Management Mid America Christian University Introduction Employee benefits are an implement used by businesses to attract potential candidates, improve employee satisfaction, reduce turnover, and maintain competition. Benefits that most employers offer include, but are not limited to, medical and dental coverage, time away from work, retirement, and additional assistance during life changing events. Much of employers in the United States offer benefits to their employees and include an annual enrollment yearly to select benefits and make any needed changes. Employee benefits can improve the overall competitive compensation approach of the organization.…show more content…
In the 1930s, the Wagner Act suggestively increased the ability of labor unions to organize workers and bargain for better wages, benefits, and working conditions. Labor unions from the 1930s to 1950s took advantage of the favorable lawful environment and negotiated for new employee benefits that have since become common in both unionized and non-union companies. Federal and state legislation requires companies to offer certain benefits to employees. Finally, employers may find themselves at a disadvantage in the labor market if they do not offer competitive benefit packages. In the United States, legislation requires practically all employers to offer the social security benefit, unemployment insurance, and workers ' compensation insurance. Larger companies, which usually consist of fifty or more employees, are also required to offer employees an unpaid family and medical leave benefit. Firstly, there is the social security benefit which the Social Security Act of 1935, as amended, provides monthly benefits to retired workers who are at least sixty-two years of age, disabled workers, and their eligible spouses and dependents. The social security benefit is financed by contributions made by the employee and matched by the employer, computed as a percentage of the employee 's earnings. Monthly benefits are based on a worker 's earnings, which are adjusted to account for wage inflation. The Social Security Act also provides Medicare health insurance coverage for anyone
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