Benefit Plan Design Analysis - Research Paper Example

Benefit Plan Design Analysis Profile of Organization and its Current Benefits Programs In order to analyse benefit plan, American Airlines Incorporation has been chosen as the organisation. AMR Corporation is the organization’s parent company and is located in Fort Worth of Texas. As of 31st December, 2010, the organization had a total of 87, 000 employees inclusive of both part time as well as full time employees. The airline company operates in more than 50 countries with in excess of 3600 flights running each day on an average. The organization has aimed at creating an advantageous environment for its employees and it strives for achieving this aim through creating and upholding a work environment which assures safety and security to its employees. American Airlines Incorporation believes in arranging its corporate responsibility in the form of responding comprehensively towards its concerns and interests of its stakeholders. The organization seeks for gathering loyalty factor from its customers by constantly realizing and fulfilling their expectations. The benefit programs of American Airlines Incorporation at present are inclusive of primarily traveling privileges, support of ‘work-life’ plans, benefits of health and life, policies of savings and retirement and various programs for training and development of its employees. The traveling privileges provide the benefit to its employees to travel to any place in the world at discounting rates, provided the employees travel by either American Eagle or American. The support programs of the work life in the organization are inclusive of different types of resources for the purpose of accomplishing various needs, both personal as well as professional. The benefit programs related to health and life of the employees are inclusive of aiding incompetency of the employees with respect to vision, physical disability and dental among others. The various policies related to savings and retirement for the employees in the organization are composed of plans such as that of incentives, sharing of profit, credit union and similar others. The benefit programs related to training and development to the employees are aimed towards helping the employees for growing adequately and enhancing their respective prospects of career within the airline industry (American Airlines, 2010). Key Facts for Analyzing the Benefit Programs The airline company offers several benefit programs for attracting the best talent to work for their organization. The programs in relation to social security and compensation to the workers are quite typical and requisite by the law. However, there are even certain benefit programs which the company offers to its employees with the prime objective of attracting and retaining talents. The programs such as 401K-Super Saver that offers provision for tax up to an amount of 20 percent, the plan for purchasing stock and the credit union plan that assists the employees in buying house are a few of the plans which are beyond the requirement of the American law. Apart from these, the airline company also provides a number of holidays during which the employees are not required to work but at the same time they are entitled to be paid by the company. Along with these competitive employee benefit programs, the airline company also holds certain loopholes in its schemes for the employees. For example, the organization does not offer its employees to travel free of cost unless they have covered a tenure of ten years within the company. With the aim of becoming more effective within the airline industry in America, the organization should inculcate this plan within its list of employee benefit programs for generating more competencies within its organization. This airline company holds a wide range of benefits and incentive programs for its employees which its competitors fail to provide. However, simultaneously, it has developed one of its biggest weaknesses by not providing the offer of free travel to its employees (American Airlines AA Career, 2008). References American Airlines AA Career. (2008). Summary Of Material Modifications For Health And Welfare Benefit Plans Sponsored By American Airlines, Inc. Retrieved July 07, 2011, from http://www.aacareers.com/ebg/Archive/smm2009/hw_smm_pilot_08dec.pdf American Airlines. (2010). Corporate Responsibility - Responsibility Comes First. Retrieved July 07, 2011, from http://www.aa.com/i18n/aboutUs/corporateResponsibility/main.jsp?anchorEvent=false&from=Nav Read More