Page 263 - Encyclopedia of Business and Finance

eobf_E 7/5/06 3:00 PM Page 240

Employee Benefits

often the major deciding factor in whether a person gives the employee a feeling of power by having some con-
accepts a position with a company. The degree of health trol over planning for retirement.
insurance is often more important to a potential employee
than the salary level, especially when children are
EXPANDED TYPES OF EMPLOYEE
involved. BENEFITS
Most benefit plans also include a certain number of While health care, paid time off, and retirement plans are
paid sick days, personal days, and/or vacation days. Many the most common types of benefits employees receive,
companies are finding ways of increasing the flexibility of some companies offer even more types of benefits to help
employee benefits. One way to increase flexibility is to attract and retain employees as well as increase employee
group vacation, personal, and sick days into a certain morale and improve job performance. One example of
amount of paid time off (PTO). PTO allows employees to this type of benefit is tuition reimbursement, which allows
take days off—for example, to care for a sick child, employees to further their education while working.
observe a religious holiday, or go on vacation—without Motivating employees to better themselves at the
explanation. The PTO benefit helps employees because employer’s expense, helps the company keep knowledge-
their time is more flexible, and it helps employers by able employees.
maintaining morale and reducing unanticipated absen- With the growing number of single parents and dual-
teeism. career couples in the work force, many companies have
Life insurance and retirement options are another opened day-care facilities in the workplace where employ-
type of benefit many companies offer their employees. ees can feel safe about leaving their children. On-site child
These types of benefits often encourage employees to care is obviously a very desirable benefit for parents
remain with the same company because they do not want because it allows them to check up on the children, cut
to cash in their life insurance or retirement plans. This down on travel time, and be available in case of an emer-
tends to make employees more loyal to the company gency. However, some childless workers feel that this ben-
because their future is invested with the company. It also efit discriminates against them because they get no use out

Retailers like Target offer discounts on merchandise to their employees. PHOTOGRAPH BY KELLY A. QUIN. THE GALE GROUP.

240 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION