The bank of America values its employees and for this reason it has a well-developed compensation and benefits programs that seek to motivate the staff members. This includes life management, retirement, time away, flexible time, employee banking and investment as well as health and insurance benefits. The company offers a comprehensive healthcare benefit to its employees that cater for medical cases, dental health and vision. The medical program allows screening of workers and covers lifestyle coaching to ensure that employees are able to detect diseases early. This is a significant boost to the overall performance of the employees at bank of America because the program also covers their immediate family members. It ensures that the covered employees are able to concentrate on their work because they are shielded in the event of medical emergencies. The plan also includes a comprehensive dental cover and vision plan that allows the eye check up and treatment.
The company’s life management program seeks to ease the burdens of life on its employees. It offers up to three months paid maternity or paternity leave. The program also provides among others investment and financial management education to its employees at no cost. The company helps its employees plan for their future in retirement and boosts them by contributing 2-3% of their total eligible compensation based on the years of engagement at the bank. This is a major motivation to its members of staff who are also presented with a flexible working environment where they can choose between different available options. Time off is also available for the company based on different situations, for instance, an employee is offered maternity leave and can extend this through the paid time off by requesting the managers. Such benefits ensure that the employees are able to balance well between work and personal life.
Benchmarking ensures that the compensation program remains attractive and competitive. Bank of America provides that the employees are categorized on the basis of their duties and responsibilities. These different departments determine the pay package and other benefits based on a technicality at the department. Different packages are also offered to employees in the same department on basis experience and dedication to work for the company. This ensures that new staffs start at a slightly lower rate until they prove their worth at the enterprise as a way of encouraging them to aim higher.
The workforce at the bank of America is very diverse and therefore calls for effective communication of benefits to employees. The company values its employees and therefore ensures that the benefits offered are useful through constant communication. This is achieved through memos, personal emails and posters for reward systems such as the employee of the year. The company has also developed a benefits education and planning center that equips the employees with sound financial and benefits education through one on one advice from financial experts at no cost. Communication and feedback from the employees is also encouraged through suggestion boxes and interactive meetings.
The benefits program is divided into voluntary benefits, and the mandatory or legally acquired benefits. The legally required benefits are those that are stipulated by the law. Every employer is required by the government to provide these benefits to the employees and strict penalties follow the lack of compliance with the directive. Such benefits include retirement package, sick and maternity leave as well as insurance. On the other hand, the voluntary benefits are developed by the company and are not demanded by the law. These includes paid for vacations, pay for time off work, tuition and bursaries among others. This are meant to motivate the employees at a given company. The bank of America has incorporated both types of compensation into their benefits program.
The external environment is essential in determining the pay and allowances package set by the company. This is because it affects the living standards of people bringing the need for an increment of the employees’ basic pay. Other factors that influence the pay package include competition, legislation from the government, collective bargaining negotiated by trade unions and employees as well as employee relations. However, all this depends on one sole determinant which is the employer’s ability to deliver on these pay demands. Even with all these requirements and a willingness to increase the employee’s salary, if the employer cannot afford the increment he resolves to lay off some of some employees.
There are various issues that are related to compensation and benefits. For instance, determining the best approach to employee benefits is a challenge to many employers. Similarly, financing of the preferred benefits is also essential as many employers ponder upon which methods are the best in reducing unnecessary spending that affects the profit margins. Many companies are also in a dilemma on whether to cover retirees in their plans or not. Growing demands by trade unions during collective bargaining process burdens some firms making them lay off members of staff to be able to manage the requirements stipulated in these agreements. Other issues include the exclusion of employees who are on probation for enjoying benefits as fully hired members of staff.
References
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Chatterjee, B. (2011). Organization Development: Developing the Processes and Resources for High-Tech Businesses. Bloomington: iUniverse
Gulshan, S. (2009). Management Principles and Practices. New Delhi: Excel Books
Sims, R. (2006). Human Resource Development: Today and Tomorrow. Charlotte: IAP
Youngberg, B. (1998). The Risk Manager's Desk Reference. Sudbury: Jones & Bartlett Learning
