Dying A Wool Jacket Red

Flavours - Sample Plan Kafeteryjny

In order to illustrate an exemplary use of the cafeteria plan will be presented an example cited by Michael Armstrong. In his book, he described an example implementation cafeteria plan in the Lloyds TSB group operating in the banking sector.

Lloyds TSB has decided that the plan kafeteryjny was the best solution to integrate the terms and conditions prevailing in different acquired by a group of companies. The plan was to also be a tool to increase employee awareness of the value of compensation packages and the advantages they receive.

Group decided to introduce kafeteryjny plan, which called flavors (flavors). The name was suggested that the system will satisfy the appetites of all employees. An additional advantage of the plan would be to increase the participation of employees in the company's success by making them shareholders.

The main elements belonged Flavours:

• kafeteryjny plan - employees can choose from 13 additional benefits, from vouchers to shop for additional days off from work. It was possible to also receive the equivalent of the advantages of in the form of extra money in the monthly bill,

• incentive program at a premium in the form of shares - a tax benefit program to encourage employees to hold shares Lloyds TSB Group,

• savings scheme, namely to allow the purchase of Lloyds TSB Group shares directly using money from the salary in order to avoid the additional tax costs.

employees every month receive a sum that does not wliczała to salary. The amount of this benefit was dependent on the results of an employee in each year. Employees can use the allowance to purchase obtained the advantages of the offer, or the removal of the additive in the form of money. They also had the opportunity to devote half of salary to purchase additional advantages of either company's products at discounted prices. Alternative approach was also the resale of the advantages of being received back to us to give money for this. An example of such a transaction may be resold to five days leave.

Although employees have the opportunity to resell the existing benefits, their opportunities were limited. The base of the cafeteria plan was needed by the group Lloyds TSB insurance, death, and a basic pension plan, which could not sell. According to the company, they were basic and essential add-ons, which formed the core of the whole system presented Falvours cafeteria.

Another principle of the plan cafeteria was to maintain the greatest possible simplicity. Most of the extras that you could buy a basic complement, the mandatory accessories. In this way the system is allowed to build the corresponding employee cafeteria plan within the advantages of being mandatory. Most of the advantages of a complementary nature in relation to the core cafeteria plan, giving the possibility of building more complex and more relevant advantages of employment.

[Armstrong, M. (2007). A Handbook of Employee Reward Management and Practice, 2nd edition. Glasgow: Bell & Bain]