Strategic Compensation

ABSTRACT

This research paper provides details of the discretionary benefits offered by my company, the United States Air Force, a component of the Department of Defense (DOD) and the Federal government. While this paper will discuss many benefits, it will also make a compelling argument as to why the federal government is slowly and silently becoming an "employer of choice".

The Federal government provides a broad array of benefits programs and family friendly flexibilities to meet the needs of employees and their family. Although many companies will offer salaries that are higher; when you add all the discretionary benefits offered by the Federal government, you'll find the entire compensation package to be much better than those offered by the civilian counterparts. As an employee of the federal government, assigned to the DOD, working specifically for the Air Force as a civil servant, I'm offered many benefits at low or no cost that would other wise require a substantial amount out of my pocket.

INTRODUCTION

This research paper talks about discretionary benefits and before we proceed I'd like to define the term discretionary benefits. According to the Strategic Compensation textbook, discretionary benefits is; "benefits that employer's offer at their own choice. These benefits fall into three broad categories: protection programs, pay for time not worked, and services (Martocchio, 2010, p.241)". The Air Force offers several discretionary benefits in each of the three categories. I will discuss the characteristics of a few of these benefits.

Information about Federal pay, compensation, benefits and leave are all under the direction of the U.S. Office of Personnel Management currently under the direction of Mr. John Berry who as the Director is responsible for recruiting, hiring, and setting benefits policies for 1.9 million Federal civilian employees. The benefits are offered to all federal employees and I will refer to this site throughout my paper. I will also make reference to the Federal government and Air Force however for the purpose of this paper one is an extension of another and is all inclusive.

Although you will find many benefits and entitlements, I will elaborate on a few of what I consider important to the "value of employment". These discretionary benefits are life insurance, retirement programs, health protection and disability insurance programs, and the federal governments leave policy. Other benefits that I will not elaborate on however important to mention are privileges such as free use of a world class fitness center, and access to low cost facilities on the base (bowling ally's, golf courses, lodging, etc.) which are all part of the benefits offered to Air Force employees.

The Air Force offers a range of family friendly flexibilities including flexible work schedules, Tele-work; child care; adoption information and incentives programs; child support programs, including subsidies and dependent care flexible spending accounts.

BENEFITS

According to OPM.Gov, a website for the Federal government, the health insurance program for the Federal government is a nationally recognized model that offers a choice and flexibility along with a substantial employer contribution to premiums. You can pay your share of premiums as well as your out-of-pocket costs with pre-tax dollars. Called "The Federal Employees Health Benefits Program" (FEHB), this program represents the government's health benefit program which has about 180 health plan options throughout the United States, including consumer-driven health care and preferred provider network options. At least a dozen plan choices are available to each employee, which allows for a broad choice so that employees can select the plan that best meets their own individual health care needs. While specific benefits vary among FEHB plans, none can impose a waiting period or require a medical exam to enroll in their plan. (opm.gov)

Dental and Vision benefits are also available to eligible Air Force employees, retirees, and their eligible family members on an enrollee-pay-all basis. You can elect to take either Dental or Vision or both. This Program allows dental insurance to be purchased on a group basis which means competitive premiums and no pre-existing condition limitations. Premiums for enrolled Air Force employees are withheld from salary on a pre-tax basis. Enrollment takes place during the annual Federal Benefits Open Season in November and December. New and newly eligible employees can enroll within the 60 days after they become eligible. (opm.gov)

The Federal governments leave policy is another benefit that is often difficult to duplicate in the civilian sector. Paid time off includes all federal holidays. Federal employees are entitled to at least 13 days of vacation leave as well as 13 days of sick leave each year. Depending on years of service, employees can earn up to 26 days of vacation leave each year. In addition, Federal employees get 10 days paid holiday each year. This allows employees time to spend with their families and to pursue their own individual interests and avocations. (opm.gov)

Another program called the "Voluntary Leave Transfer Program" enables a person who is in excess of leave to donate their leave to an approved member who due to illness or injury is in need of additional Leave (afpc.com)

The official site to search for jobs in the Federal government is USAJobs.gov. In this site you'll find information about jobs as well as benefits. Here are a few of the benefits:

Retirement: Federal Employees Retirement System (FERS): is one of a 3-part long term retirement program which includes a social security benefit, a 401(k) type plan, and a defined benefit component based on years of employment and salary history. Employees who had previous Government service may be eligible to participate in the Civil Service Retirement System (this was not so in the past).

Life Insurance: A long term benefit program called Federal Employees Group Life Insurance (FEGLI) is a group term life insurance program that consists of Basic life insurance coverage and three options. In most cases, if you are a new Federal employee, you are automatically covered by Basic life insurance and your payroll office deducts premiums from your salary unless you waive the coverage. In addition to the Basic, there are three forms of Optional insurance that you can elect, (Standard, Additional, and Family). The program offers the opportunity to retain your coverage for your entire life. (USAJobs.gov)

The Federal Government's Alternative Work Schedule (AWS) allows employees to select certain arrival and departure