Human Resources- Benefits Essay Example | Topics and Well Written Essays - 1750 words

Human Resources- Benefits - Essay Example Another benefit issue includes decreasing annual bonuses, cutting off maternity leave from 12 months to six months and making short the vacation time. In this plan, â€Å"the firm lends the employee funds to purchase the stock at fair market value â€Å"(Bhagat 1984 pg 197). The purpose of the plan is to offer eligible employees a chance to become shareholders in the company. It is assumed that employee participation in the ownership of the business will lead to common benefits for both the employees and the company. The company grants stock-based compensation to directors as well as employees. They issue new shares of Microsoft common stock to assure exercises of awards approved under all stock plans. They also have an employee stock purchase plan for all eligible employees. Shares of common stock will be purchased by employees at intervals of â€Å"90% of the fair market value† (Intricon Corporation 2011 pg 2) on the last day of each period. Employees might acquire shares having a value not exceeding 15% of their gross compensation during a proposed period.  But the company has announced it will reduce the discount employees that are to be given when they buy Microsoft stock. These benefit changes were made in order to decrease their operating costs and also increase the long-term value of the company. The employees will be able to acquire Microsoft stock at a 10 percent discount through Microsoft's Employee Stock Purchase Plan, compared with the current 15 percent discount. They will also be able to acquire stock through the plan each quarter, rather than twice a year. Microsoft needs to increase the stock purchase benefit plans as they facilitate the recruitment & retention of talented staff, promote an industrial environment and also offer a device for the arrangement of interests between employers and employees. For the growth of successful companies, these plans are likely to construct sustainable wealth for employees and their communities. Em ployee stock purchase plans will improve the employee productivity. Part 3: Literature Review Benefits play a significant function for an employer. The employees will work hard to make sure that their benefits replicate the varying needs and wants of the people and that is why most of the companies offer many industry-leading benefits to their employees who help in accomplishing the objectives of the organization. Employee benefits comprise of â€Å"all benefits and services, other than wages for time worked, that are provided to employees in whole or in part by their employers† (Beam & McFadden 2001 pg 4). Examples include medical insurance, paid vacation etc. There are various benefits provided by the US government to the employees such as medical protection, retired income etc. These benefits may be long term or short term, financial or non-financial, free of cost or available at concessional rates. They may include educational, residential, medical or recreational facilit ies. Such facilities maybe offered individually or in a group and within or outside the organization. Therefore, the employee benefits are reassurance along with the facilities provided which allows them to operate in a nourishing and passive environment. Most employers reimburse employees with some blend of cash plus benefits such as health assurance. An employer may decide to include benefits in the company’