Benefits and Compensations

Posted: March 26th, 2020

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Benefits and Compensations

            Apart from the benefits mandated by law, the majority of the benefits and compensation are at the employers’ discretion. Given its complexity, it is necessary to solicit the services of benefits consultant. The restaurant business records the highest employee turnover rate across all industries. To stimulate employee retention, the employer has to provide incentives for the employees at all levels both the back of the house and head of the house. A common misconception that employers perpetuate is placing a premium on the head chefs while treating the rest of team as dispensable. The team usually builds a rapport from the waiters to the dishwashers that are continually undermined when a recruit has to be hired to take over the work. Similarly, the customers establish relationships with the waiters and their preferences may inform their continued loyalty to the premises. The restaurants business is part of the hospitability industry and holistic approach towards service is key (Czajor 45). It is a continuous process from the back of the room to the front. Employers should have a long-term focus rather than being fixated on short-term cost reduction strategies. Employee satisfaction helps to optimize productivity thus create a lively ambiance a value that even money often can not equate.

            Though healthcare insurance has penetrated the mainstream reservations in its application to employees is warranted. The concerns are valid given that a health insurance cover takes 90 days to mature and some employees quit before the completion of the third month wasting investment. Nonetheless, to competitively attract and retain the best human resource health insurance will be provided to employees that have stayed with the organization for an average of a year (Ma, Jing, and Ghiselli 45). The individual healthcare cover is ideal for restaurants as it can be leveraged during recruitments. It is more flexible as well as 60% cheaper than group health insurance. It has a provisional that enables the employees to choose a plan that is within their financial capabilities. A young employee with good health can subscribe to lower premiums and higher deductibles. Conversely, an employee with greater health needs can request a plan with lower deductibles and higher premiums. Every employee is advised to take advantage of the patient protection and affordable care act by paying the minimum premiums within their budgets to supplement their individual healthcare cover.The base wage for all employees will be paid biweekly to reduce encroached of the salary by tax deduction while still maintaining convenience. Weekly payments are eligible for separate fees given they are independent events to the IRS.

            Apart from the statutory vacation period and the annual leaves, workers compensation for workplace injuries, and the maternity leaves. The restaurant has a provision for leave of absence depending on the urgency of the situation. It is important to note that is not a static benefit rather is accorded relative to need. A restaurant is a labor intensive industry thus frequently paid time off would be counterintuitive. There will be biannual group holiday that will double as team building sessions(Ma, Jing, and Ghiselli 64).. Other family members limited to five will be allowed to accompany them. Similarly, paid time off will be given as part of the employee rewards for exemplary performances. One caveat is critical as only full-time employees will be eligible for the benefit. All employees will be allowed sick offs with wages for a maximum of 9 days after which they will be no monetary compensation.

As part of family assistance benefits, all the employees will receive subsidized vouchers on purchases from the establishments. The subsidies are at a flat rate not corresponding to the employee child are costs (Sherk 32). Given that that aesthetics determines the service industry, the physical health of the employees aligns with the restaurant’s interest. The dental insurance will leverage the schedule of allowance programs that will pay a fixed amount for dental visits regardless whether it is over or under the required charge. When the payment exceeds the costs, the funds will be returned to the respective employee’s account. A discount vision plan will be in the plan for the employees. The employees have to be employed for the duration of three months to qualify for these benefits.

            While life insurance will be absent, its 401k alternative will be provided for both full time and part time employees. The employer will manage These pension funds on behest of the employee. It will be spread from share options of the restaurant to stimulate a feeling of ownership. The employees are bound to increase their productivity in the workplace when they believe they have a stake in the business(Sherk 54). Nonetheless, the funds will be diversified to other money market investments as well stock and bounds. The taxes for the funds will be deferred until the withdrawal of the funds. Nonetheless, access to the account will have a five-year cap on which the employee will not be able to access the account. Even after completion of the vesting period, a one year two year period of abstinence from the account will be required to quell the existence that may cause employees to withdraw their funds abruptly. However, the additionally time will not be necessary for employees who have reached retirement age. If an employee does not reach the temporal benchmark, the funds revert to the employer’s account. 

             The restaurant values the peace of mind of its workers as it is directly proportionate to their productivity and has implications for their workplace interactions. It follows that the restaurant has partnerships with several counseling and rehabilitation programs as part of employee assistance programs. The employee assistance programs will be scheduled on weekends. The employee assistance programs have multiple offerings from stress management to conflict resolution, mental health referral, and evaluation are also present, all fully covered. Alcoholic rehabilitation programs are currently beyond the management’s scope but will be gradually integrated into due course. The management will observe utmost confidentiality and with respect the employee’s privacy by ensuring that only the essential staff is privy to the employee’s tribulation. Restaurants attendance policy is a week no call, and no shows will translate to termination with the exception of special circumstances. The restaurant will go a step further to contact close relatives and friends to ascertain the employees well being after which they will act accordingly. The employee may be liable for punitive damages for the projected earnings lost.

Works Cited

Czajor, Juergen. “Compensation and Benefits: Essentials of International Assignment Management 55.” Handbook of Human Resources Management (2016): 951.

Ma, Jing, and Richard Ghiselli. “The minimum wage, a competitive wage, and the price of a burger: Can competitive wages be offered in limited-service restaurants?.” Journal of Foodservice Business Research 19.2 (2016): 131-146.

Sherk, James. “Productivity and compensation: Growing together.” The Heritage (2013).