Human Resources Benefits Overview

1
Human Resources / Benefits Overview

• UNCW
• April 21, 2005
• Debby Moreland
• Executive Director, Corporate Human Resources
• PPD

2
What Well Cover

• Introduction
• Benefits Overview
• Benefits As a Profession
• Future of HR

3
Pop Quiz

• What are the most common employee benefits?
• What percentage of a companys payroll does
  benefits represent?
• What are some of the government agencies that
  regulate employee benefits?
• What benefits are mandated?
• What benefits are most important to employees?
• What are some of the workplace trends that
  HR/benefit professionals will have to address?

4
Who is PPD?

• A leading global provider of discovery and
  development services and products for
  pharmaceutical, biotechnology and medical device
  companies
• 1985
• Fred Eshelman founded PPD as a one-person
  consulting firm
• 1996
• PPD issued its initial public stock offering
  (IPO)
• 2004
• 6,300 professionals worldwide
• 60 offices in 27 countries
• Clients include 46 of the top 50 pharmaceutical
  companies and 250 biotechnology/small
  pharmaceutical and medical device companies

5
My Career Path
PPD (1999 - Present)
Executive Director, Corporate Human Resources
Director, Compensation and Benefits
Director, Corporate Information / Strategic
Planning Consultant
Director, Human Resources
Director, HR Services
Blue Cross / Blue Shield of NC (1992 - 1999)
Manager, Compensation and Benefits
Compensation / HRIS Manager
Corporate EEO/AA Specialist
Recruiter
PRC (1983 1992)
Associate Recruiter
Recruiting Assistant
B.B.A Management
6
PPD U.S. HR Organization

• Corporate Human Resources
• Compensation
• Benefits
• HR Information Systems
• Equal Employment Opportunity / Affirmative Action
• HR Communications
• Recruiting
• Recruiters assigned by functional area (e.g. IT,
  Clinical, Biostatistics, Finance
  Administration)
• Employee Relations / Organizational Development
• HR generalists assigned by geographic location

7
Total Compensation
Cash Compensation
Cash Accumulation
Bonus
FSAs
Income Protection
Value-Added Programs Services
8
Benefits Expense

• Benefits represent a substantial portion of
  total compensation
• 42.3 of payroll or 20,219 per employee
• U.S. Chamber of Commerce study of 2002 costs
• Health care costs are a large piece of this
  expense and is a significant concern to employers
• Averaged 6,277 per worker, compared with 4,970
  for paid time off and 2,634 for retirement
• Expected to continue rising an average of 14
  annually but employers say that they can only
  absorb an average annual rate increase of
  approximately 9
• Employees will have to absorb the difference if
  the spiraling costs are not controlled

9
Types of Benefits

• Mandated
• Health and Well-Being
• Income Protection and Financial Security
• Work / Life Balance
• Additional Programs and Services

10
Mandated Benefits

• Some benefits are required by federal or state
  legislation
• Social Security / Medicare
• Unemployment insurance
• Workers compensation (mandated in most states)
• Family and Medical Leave (some states have
  additional FMLA requirements above the federal
  Act)
• Short-term disability (mandated in a few states)

11
Health and Well-Being

• Health insurance (medical and prescription drug)
• Dental insurance
• Vision coverage
• Employee Assistance Program (EAP)
• Wellness program
• Fitness center
• On-site employee clinic

Most common
12
Income Protection and Financial Security

• Life insurance
• Accidental Death Disability Insurance
• Short-term disability
• Long-term disability
• Flexible Spending Accounts (Medical Dependent
  Care)
• 401(k) Retirement Plan
• Employee Stock Purchase Plan (ESPP)
• College Savings Program
• Pension Plan (rare now)

Most common
13
Work / Life Balance

• Paid Time Off - Vacation, sick leave and personal
  time
• Holidays
• Leaves of Absence
• Educational Reimbursement
• Flexible Work Schedules
• Adoption Assistance
• Pre-paid Legal Plans
• On-site Day Care Centers
• Mothers Lactation Rooms

Most common
14
Additional Programs and Services

• Local discounts
• Group discounts on property/casualty insurance
• On-site services such as ATM, dry cleaning or
  photo processing pick-up/ delivery
• On-site cafeteria
• Pet Insurance
• Concierge services

Most common
15
Alphabet Soup of Regulations and Agencies

• ADA Americans with Disabilities Act
• COBRA Consolidated Omnibus Budget
  Reconciliation Act
• DOL Department of Labor
• ERISA Employee Retirement Income Security Act
• FASB Financial Accounting Standards Board
• FMLA Family and Medical Leave Act
• HIPAA Health Insurance Portability and
  Accountability Act
• IRS / IRC Internal Revenue Service / Internal
  Revenue Code
• OSHA Occupational Safety and Health
  Administration
• SEC Securities and Exchange Commission

16
Top Five Very Important Job Satisfaction Aspect
for Employees by Age
17
Top Five Benefits Most Important to Overall
Employee Job Satisfaction
18
Challenges

• Affordability, especially soaring health care
  costs
• Competition
• Employee expectations
• Significant number of new laws and regulations
• Compliance, including Federal vs. State
• Technology
• Globalization
• Communication, communication, communication

19
Typical Benefits Career Path
Consulting / Legal

• Analyst
• Consultant
• Benefits Legal Counsel

Employer
Senior Management
Benefits Compensation Manager
Vendor / Third Party Administrator
Benefits Manager
Compensation Manager
Benefits Supervisor
Compensation Supervisor
Benefits Specialist
Compensation Analyst

• Administrator
• Specialist (e.g. Communications, Compliance,
  Implementation)
• Client Management

Benefits Administrator
Compensation Administrator
Benefits Assistant
Compensation Assistant
Typical Education Bachelors Degree in Human
Resources or related business discipline or
Psychology MBA Law degree
20
Key Success Factors

• Business acumen
• Analytical
• Detail oriented
• Problem-solving skills
• Organizational /prioritization skills
• Mathematical / statistical ability
• Computer skills
• Flexible
• Proactive
• Customer service orientation
• Interpersonal and communication skills

21
Top 10 Overall Workplace Trends

• Rise in health care costs
• Focus on domestic safety and security
• Use of technology to communicate with employees
• Growing complexity of legal compliance
• Use of technology to perform transactional HR
  functions
• Focus on global security
• Preparing for the next wave of retirement and
  labor shortage
• Use and development of e-learning
• Exporting of U.S. manufacturing jobs to
  developing countries
• Changing definition of family
• Source 2004-2005 Workplace Forecast A
  Strategic Outlook, Society for Human Resource
  Management

22
Pop Quiz

• What are the most common employee benefits?
• What percentage of a companys payroll does
  benefits represent?
• What are some of the government agencies that
  regulate employee benefits?
• What benefits are mandated?
• What benefits are most important to employees?
• What are some of the workplace trends that
  HR/benefit professionals will have to address?

23
Questions?