Type: Critical Essays
Sample donated: Maria Black
Last updated: August 22, 2019
Employee benefits are various types of non-wage compensation provided to employees by employers in addition to their normal salaries and wages.
The purpose of employee benefits, for the employee, is to increase economic security and to boost morale. For the employer, benefits increase employee retention. Examples of employee benefits include medical insurance, life insurance, disability insurance, retirement benefits, vacation and family leave. According to the 2014 paychex.com article “What Basic Benefits Must a Company Provide Employees?”employers are obligated to provide: social security, Medicare, FICA, unemployment insurance, worker’s compensation insurance, health insurance (for companies with 50 or more employees), family and medical leave. These are the benefits that are mandated by law. Other benefits, such as paid time off, tuition reimbursement, and retirement savings plans are just a few of the many additional benefits employers may offer employees, but are not obligated.
In this assignment, I will analyze the top five Fortune 500 companies (in order by revenue) employee benefits practices and determine which company I would prefer to work for based on my findings. Employer benefits practices are influenced by their industry, location, culture and leadership, just to name a few. The intangible benefit of employers offering different types of benefits appeal to different prospective and current employees. Walmart for example offers a variety of benefits for health and financial well-being. Walmart is a multinational retail corporation with over 11,000 stores and 2.3 million employees worldwide.
Their most popular health care plan starts at only $23.20 per pay period which includes an up-front contribution of $250 to $1,000 to help pay for medical expenses. All of Walmart’s eligible associates, both full and part-time, have affordable options that include no lifetime maximum, eligible preventive care covered at 100% and an up-front contribution to help pay for employee medical expenses.
Walmart continues to pay on average, over 75% of the premium cost and 60% of total health care costs for associates covered under their medical plans. In addition to this, Walmart’s comprehensive benefits plan also includes dental, vision, coverage for domestic partners, and insurances ranging from life, short and long term disability, critical illness and business travel accidental insurance. Walmart financial benefits include 401(k) retirement savings with matching contributions of up to 6% for eligible associate stock purchase plans with company match, discount cards that offers employees a 10% discount on fresh fruit, vegetables and regularly priced general merchandise at Walmart stores, access to an associate discount center that offers exclusive discounts on travel, cell phone services, entertainment and other goods and services not available in Walmart stores. Apple Inc. is a multinational technology company that offers unique benefits to their employees. Such benefits include private health insurance, onsite fitness and wellness centers, private pension plan, work-life balance, life assurance, employee referral programs, discounts on apple products, and stock purchase options. Apple also allows mothers to take four weeks of paid leave before giving birth and 14 weeks after; non-birth parents get six weeks of paid time off, new hires get 12 days of paid time off and, depending on the location, Apple provides employees with a $300 gym credit annually. Apple makes commuting easier for employees, they offer stipends to employees who use public transportation.
ExxonMobil Corporation is a multinational oil and gas corporation. The benefits they offer their employees include medical, dental, vision, savings and pension plans. They also offer disability, pre-tax and life insurance plans. Vacation is also included, where you can accumulate up to 6 weeks of vacation based on your seniority.
ExxonMobil offers flexible work arrangements, financial fitness programs, educational refund programs, matching gifts programs and life assistance resources. In addition to these benefits, they also offer employee networks which provide mentoring, coaching and strategies to enhance personal and professional development. ExxonMobil also provides adoption assistance up to $5,000 per child to assist with eligible adoption expenses.
McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies and care management tools. The company prides itself on having a strong culture of health. They offer up many wellness programs and initiatives to their employees. Benefits that they offer their employees include free biometric screenings, gym discounts, smoking cessation programs, and free flu shots. In addition to competitive pay, employees have access to 401(k) plans and employee stock purchase plans.
McKesson offers training and development for employees through their employee learning course program. McKesson also supports employee’s desires to further their education through their educational assistance program. Also, at McKesson, there is opportunity for employees to volunteer through the McKesson Foundation. Through the foundation, employees support communities with up to $2,500 in matching gifts per employee per fiscal year, $250 grant for every 25 hours employees volunteer, and $1,000 grant to a nonprofit when you serve on the board for up to 2 boards