HAFIZ RIZWAN 75

KASHIF MEHBOOB 77
LUQMAN MEHMOOD 74
KALEEM-ULLAH 32
MANSOOR SUBHANI 41

Discretionary Benefits
Discretionary Benefits

The common has discretionary powers to awards extra

funds. Discretionary benefits fall into three board
categories:

 Protection programs
 Paid time off
 Services
Discretionary benefits originated
in the 1940s and 1950s
 During both World War II and the Korean War
 Not increase employees core compensation
 But it did not place restrictions on companies employee
benefits expenditures

Welfare practices
Anything for the comfort and improvement, intellectual or
social, of the employees, over and above wages paid, which is
not a necessity of the industry nor required by law.
 Welfare practices
 Employees welfare benefits to promote good management
and to enhance worker productivity.

 National labor relation act of 1935 which legitimized

bargaining for employees benefits.

 Union workers tends to participate more in benefits plan than

do nonunion employees (92% versus 72%)
Components of discretionary benefits

Several benefits practices fall into the category of

discretionary employee benefits.

Income protection program:

 Short term disability insurance
 Long term disability insurance
Life Insurance

Life insurance is a contract between an insurance policy

holder and an insurer or assurer, where the insurer
promises to pay a designated beneficiary a sum of
money I exchange for a premium, upon the death of
an insured person.
Kinds of life insurance

 Term life insurance

 Whole life insurance
 Universal life insurance
 Kinds of life insurance

Term life insurance:

Term life is a policy that covers you for a set period of time,
typically, 10, 15, 20, or 30 years.

Whole life insurance:

Provide permanent coverage that last a lifetime
as well as guaranteed premiums and a guaranteed cash
value.
Kinds of life insurance

Universal life insurance:

Provides protection to employees’ beneficiaries based on
the insurance feature of term life insurance and a more
flexible savings or cash accumulation plan than found in
whole life insurance plan.

Retirement programs
A system for saving money for use during retirement.
 Health protection programs:

Health Protection is a term used to encompass a set of activities

within the Public Health function. It involves:

1. Ensuring the safety and quality of food, water and the

general environment
2. Preventing the transmission of communicable diseases
3. Managing outbreaks and the other incidents which threaten
the public health
 Paid time-off
 The second type of discretionary benefit is paid time off.

 Paid time off or personal time off (PTO) is a policy in some

employee handbooks that provides a bank of hours in which
the employer pools sick days, vacation days, and
personal days that allows employees to use as the need or
desire arises.

 Paid time off policies compensate employees when they are

not performing their primary work duties.
Types of paid time-off
The major types of paid time off are:
 Holidays
 Vacation
 Sick leave
 Personal leave
 Funeral leave
 Lunch period
 Integrated paid time off
 Sabbatical leave
 Volunteerism
Types of paid time-off
 Holidays:
A paid holiday is time off from work for rest and recreation
on a publicly recognized holiday.
 Vacation Time:
A paid, extended period of recreation and fun away
from work.
 Sick Time:
Paid absence from work for medical care, personal
illness or injury, or the care of an ill member of the
employee’s immediate family.
Types of paid time-off

 Personal Days:
A paid day of leave from work for reasons other than
illness or vacation, taken at the employee’s discretion.
 Sympathy Leave/Bereavement:
Paid absence from work granted when a death occurs
in an employee’s immediate family. Immediate family
members are the employee’s spouse, parents, grandparents,
brothers, sisters, children, and members of the same
household.
Types of paid time-off

 Integrated paid time off:

An integrated paid time off (PTO) policy combines
vacation, sick time and personal time into a single bank of
days for employees to use to take paid time off from work.

 Study/Sabbatical leave:
Paid professional leave for the purpose of pursuing
study/education related to the job.
Types of paid time-off

 Volunteerism/Community Service:
Paid time off to participate in community programs
and other non-profit volunteer activities.
 Services
EMPLOYEE ASSISTANCE PROGRAMS:
Employee assistance
programs(EAP) help employees cope with such personal
problems that may impair their job performance as
alcohol or drug abuse, domestic violence, the emotional
impact of AIDS and other diseases, clinical depression,
and eating disorders.
FAMILY ASSISTANCE PROGRAMS:
Family assistance programs help
employees provide Elder Care and Child Care..
 Services
Flexible Scheduling and leave:
This allows employees the leeway to take off during
work hours to care for relatives or react to emergencies.
Day Care:
Day care is another possible benefit. Some companies
subsidize Child or Elder day care in community-based centers.
Tuition reimbursement:
Companies offer Tuition reimbursement programs to
promote their employees ‘education.
 Services
TRANSPORTATION SERVICES:
Some employers sponsor Transportation Services
programs that help bring employees to the workplace and
back home by using more energy-efficient forms of
transportation.
 OUTPLACEMENT
ASSISTANCE
Some companies provide technical and emotional support
through Outplacement assistance to employees who
bare being laid or terminated.
A variety of factors leads to employee termination. Those best
suited to outplacement assistance programs include:
 Layoffs due to economic hardship

 Mergers and acquisition

 Company reorganizations

 Changes in management

 Plant closing or relocation

 Elimination of specific positions, often the result of changes

in technology
 Outplacement Assistance
Programs
WELLNESS PROGRAMS:
In 1980s, employers began sponsoring Wellness
programs to promote and maintain employees ‘physical and
psychological health.

Stress management programs:

Can help employees cope with many factors
inside and outside work that contribute to stress.
Outplacement Assistance
Programs
Weight control and nutrition programs:
Are designed to educate employees about proper
nutrition and weight loss, both are critical to good health.

FINANCIAL EDUCATION Programs:

Financial education programs provide
employees with the resources for managing personal budgets
and long-term savings (e.g. for retirement).
BENEFITS AND COST OF
DISCRETIONARY BENEFITS

 Discretionary benefits, like core compensation, can

contribute to a company's competitive advantage for the
reasons discussed earlier (e.g. tax advantages and recruiting
the best-qualified candidates).

 Management can use discretionary benefit offering to

promote particular employees behaviors that have strategic
value..
BENEFITS AND COST OF
DISCRETIONARY BENEFITS

 A company can use discretionary benefits to distinguished

itself from the competition.

 Finally, the tax advantages offered companies from offering

particular discretionary benefits has strategic value.