Unit 9 Final

Running head: Benefit Plans 1

Benefit Plans 1

Benefit Plans

Stephanie A. Gillmer

Purdue Global University

HR 435-01 Compensation

Dr. Ileana Felipe

September 22, 2020

BNSF Benefit Plan

BNSF’s benefit plan to employees makes an impact on supporting success at work and in personal life. BNSF believes that if it shows values to the employee, it can help a healthier, more financially secure, a more fulfilling life, both on and off the job (BNSF Benefits, 2020). In the union contract for Seattle intermodal equipment operator employees, the benefits consist of health insurance, dental, vision plan paid by the union. There is also a 401k match up to 3%, tuition assistance, railroad retirement, short-term disability (recently added), and life insurance.

When making decisions about what factors to consider in the making of this benefits package, there are at least four steps to consider. The first is aligning the benefits strategy with business objectives. The alignment strategy should need revisiting regularly; it should evolve with changing regulations and employee requirements (Hagel, 2016). The second factor is to provide security and increase employees’ choices. For example, health coverage, life insurance, and pension are all considered core benefits. When essential benefits are taken care of, BNSF offers employees add-on coverage options to choose from (Hagel, 2016). The third step is educating employees about the benefits program. BNSF needs to have a training program that explains how it fits into the company goals and that it is an employee appreciation that BNSF values its workers. The Fourth step is to have a high-performance program rewarding employees that consistently do the right thing and abide by company rules and safety.

Preference and personal factors to BNSF employees a hypothesis are employees want benefits that tailor to their individual needs. If an employee has a family, they will more than likely want high-end health care plans, paid parental leave, and a flexible work schedule. A single employee might be more into tuition reimbursement, professional and career development, and paid time off. It’s a matter of how the employee ranks what the benefits plan offers.

When researching what family-oriented employees want in a benefits plan, flexible work scheduling is very common, and information and referral services for dependent care (Mullins & Holmes, 2018). If BNSF offers family-oriented workers these benefits, it will attract the attention of the work and support retention employees, therefore making BNSF an employer of choice. For non-family employees questioned at BNSF, they were most interested in health care, leave, a flexible work schedule, professional development, and financial benefits.

In conclusion, the hypothesis stated above was supported by the information gathered. Each employee has a little different view as to what they look for in a benefits plan. One employee questioned has a sick mother at home, and he opted into a specific program to get elderly care for her as she can no longer be by herself. He also uses paid time off (PTO) if she has emergencies. A younger employee questioned was much more into advancing in his career at BNSF and interested in contributing to his 401k to get the most out of BNSF’s 3% match. Not every employee was a perfect match to the hypothesis, although it was close. The benefit plans that BNSF has to offer are reasonable compared to other employers. The health care package covered in the union contract is a significant asset to employees, along with tuition assistance, matching 401k. BNSF can improve in one area, particularly what the employees agreed upon is wanting sick leave. Although it is a law here in Washington for employers to offer paid sick leave, BNSF does not apply to individual state rules as the railroad is Federal. If an employee wants to take a ‘sick day,’ they must either use a day of vacation or call off and take an attendance hit. Many employees do not want to use leave or take an attendance hit; therefore, they come to work feeling under the weather or sick.

Resources:

Hagel, S. (2016, April 13). Five factors to consider when designing benefits plans. Retrieved September 20, 2020, from https://www.fm-magazine.com/news/2016/apr/designing-benefits-plans-201614223.html

Mullins, F., & Holmes, J. (2018, March 1). Balancing board? The effects of board independence and capital on firms offering work-family benefits. Retrieved September 20, 2020, from https://eds-b-ebscohost-com.libauth.purdueglobal.edu/eds/pdfviewer/pdfviewer?vid=2

OVERVIEW OF BNSF BENEFITS AND THIS SPD. (2020). THE BNSF GROUP BENEFITS PLAN. DOI: http://www.bnsf.com/employees/benefits/spd/Benefits_OV.pdf