This article relates to the Compensation and Benefits Competency,
commonly evaluated in employee satisfaction surveys. The questions
included in this competency will help your organization determine
whether your employees feel they are fairly paid for the work they
perform when compared to a similar job at a different company. This
competency also queries their feelings regarding the adequacy and
quality of their benefits package. A fair and attractive compensation
package is critical for hiring and retaining quality employees. A high
satisfaction level in this competency requires that your compensation
structure and benefits package be fair, balanced, and understood by your
present employees.
This
article, The Worth of Health Insurance, is part of AlphaMeasure's
compilation, Tales from the Corporate Frontlines. It focuses
specifically on the value of employer provided health insurance to
employees in today's workplace and economic climate.
Anonymous Submission:
Large
salary increases are rare these days, especially for mid level, mid
career employees. Having worked at the same small, family owned business
for about ten years now, my fellow employees and I were accustomed to
getting about the same raise every year. It never varied very much, and
we considered it fair, especially since the business was quite solid and
successful with a steady profit stream for the past several years.
That's
why we were all so shocked this year when our expected increase amount
was cut in half. After the shock faded, the office was abuzz with
speculation "the company is going under, that sales rep, Mr. Brown, lost
that lucrative account, I knew this would happen, the owners are just
getting greedy, they're thinking of selling to a large multinational" -
were some of the stories considered.
Finally, our general manager
caught wind of the discussions and settled us down for a meeting. He
told us that the reason the increases had been cut was that the health
insurance program premiums had risen very sharply. The owners decided
that rather than require the employees to pay more for the insurance, it
would be better to pay the extra premium and give smaller salary
increases. He told us that many companies are handling rising premiums
in much the same way.
Many employees, myself included, were
skeptical. Sure, we told each other. That's a good story. And we picked
up where we'd left off with our previous speculations.
That night,
I received a phone call. It was my sister, and she was crying. She's a
stay- at- home mom, her husband has been downsized, and the family is at
the point where it has to pay for health insurance. As my sister
tearfully recited the rates she'd been quoted, I was beyond shock. It
amounted to a small fortune. After she hung up, I went online to my
health insurance provider website. I checked the rate I would pay
without my employer contribution. The price difference was far higher
than my raise reduction, and the coverage wasn't as good.
Humbled,
I went to work the next day and told my coworkers what I'd discovered.
We'd all underestimated the worth of a solid benefit plan with good
health insurance in today's workplace and economy. Suddenly our salary
increase seemed a lot larger.
