The escalation of health insurance costs arise from the rising costs of healthcare. As such, to determine the suitability of a healthcare insurance package, it is prudent for organizations to ensure that they compare their packages with those of other companies in the market to understand where they lie in terms of the appropriateness of their benefits program. The corporate compensation and benefits costs for StopNshop include total wages at 50%, total benefits costs at 25%, paid leave at 5%, supplemental leave at 2%, insurance at 6%, retirement and savings at 2%, and legally required benefits at 10%. This paper compares these compensation and benefits package with those of other organizations as stated in the US Department of Labor Bureau Of Labor Statistics.
As at 2005, the employer costs per hour worked for employee compensation for all workers was 70.2% (wages and salaries) as a percentage of the total compensation. For those in the management and professional fields, the wages and salaries were 71.2% of the total benefits. Additionally, those in the sales and office were compensated at 71.5% of the total compensation given to the workers. Those in the general service sector had wages and salaries compensated at 71.4% of the total pay. This is high compared to StopNshop, which offers 50% as wages and salaries costs as a percent of total compensation.
The total benefits costs for all workers, as at December 2005 for other companies was 29.8% of the total compensation. However, for those employees in professional management, the total benefits were 28.8% while those in the sales and office sector were compensated at 28.5% of the total compensation offered by their employers. In the case of service sector, the total benefits were capped at 28.6% of the total compensation. These total benefits are way above the one offered by StopNshop, which offers 25% of the total compensation.
Insurance packages are the other compensation packages that are different with other companies. For instance, the insurance plan for all workers was 8.1% of the total pay as at December 2005. Additionally, the professional management sector saw an insurance package of 7.3% while the sales and office sector had 8.6% and service sector 8.0%. Compared with the rates of the insurance benefits offered by StopNshop, the 6% is way below that of benefits provided by others in the industry.
The supplemental leave benefits for StopNshop are 2.5% of the total compensation compared to that paid by other companies for all workers at 2.5% of the total compensation. Additionally, the employees in professional management are offered a supplemental pay of 2.4% while those in the sales and office sector are given 2.1% and those in services 1.7%. As for legally required befits, other companies offer 8.1% of the total compensation compared to that of StopNshop of 10%. The following is a graphical representation of the comparison of the total compensation and benefits costs of StopNShop with other companies.
Figure 1: Comparison of the Total Compensation and Benefits Costs of StopNShop with Other Companies.
From the findings and analysis of the above chart, it is clear that StopNShop is way behind others in terms of the total compensations and benefits that it offers. Specifically, the complaints of the employees on the rising health costs are justified as other companies are offering a higher insurance package than StopNShop. Additionally, the supplemental leave benefits as well as the wages and salaries are way below those offered by other companies in the industry. As such, StopNShop should up its benefits package to competitive with those offered by others in the market.
Employment Cost Trends Home Page. (2016). Bls.gov. Retrieved 22 September 2016, from http://www.bls.gov/ncs/ect/home.htm
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