University of the Philippines

School of Labor and Industrial Relations

Diliman, Quezon City

Employee Benefits Program Proposal

By

Valerin Gale S. Robles

2017-90783

Master in Industrial Relations

School of Labor and Industrial Relations

University of the Philippines

Submitted in partial fulfillment for the course

IR 217 – Employee Benefits Program

First Semester, Academic School Year 2019 - 2020

Under the supervision of

Prof. Milan Rochelle Bernardo, MIR

 Human Resource
Department ABC CORP.
P R O P O S A L

TO : Ms. Juana Dela Cruz, Managing Director

FROM : HR Department
DATE : November 23, 2019
SUBJECT : Employee Benefits Program Improvements Proposal1

Dear Ms. Dela Cruz,

In line with the completion of the HR Department’s annual review of ABC Corp.’s Employee
Benefits Program, we would like to propose various improvements on our current benefits. These
improvements can be a big boost not just for our employees but also for our company.

The industry that we are in, specifically the IT industry, is expected to continue its rapid growth
according to Harper and Hill’s article2. However, our attrition rate this year is at 20%, twice the rate of last
year – so it is wise to be more competitive to retain and attract qualified people to take care of our
business. As the saying goes, “If you take care of your employees, they will take care of the clients.” (R.
Branson)3.

The following pages will provide you with additional information to guide you with your decision.
We, the HR Department, is hoping for your favorable response. If you have questions and/or clarifications,
let me know immediately. Thank you.

Sincerely,
Ms. Valerin Gale S. Robles
Human Resource Department

1 Disclaimer Notice: Business name and other related thoughts present in this paper are either the products of the author’s
imagination or used in a fictitious manner. Any resemblance to actual businesses, operating or non-operating, is purely
coincidental.
2 What are the Booming Industries in the Philippines?. (2016). Harper and Hill Executive Search, Inc. Retrieved from

https://harperandhill.com/company-news/what-are-the-booming-industries-in-the-philippines/
3 Why is looking after your employees so important?. (2015). Virgin. Retrieved from

https://www.virgin.com/entrepreneur/why-is-looking-after-your-employees-so-important
 Human Resource
Department ABC CORP.
I. LIST OF ABC CORP.’S CURRENT EMPLOYEE BENEFITS (40 Employees)
1. Flextime Schedule (until 12nn only) 6. Parking Space
2. HMO Card (with 1 dependent) 7. Gym Membership
3. Group Life/Accident Insurance 8. Medical Reimbursement
4. 12 Sick Leaves / 12 Vacation Leaves 9. Laptop Allowance
5. Education Assistance 10. Laptop Loan

II. ANNUAL HRD REVIEW OF EMPLOYMENT BENEFITS PROGRAM (EBP) SUMMARY REPORT
Human Resources Department recently conducted the annual review of the organization’s EBP and found
out that:
 Most used benefits

Utilization
Laptop Loan

Medical Reimbursement

0 5 10 15 20 25 30 35 40

Utilization

 Least used benefits

Utilization
Parking Space
Gym Membership

0 5 10 15 20 25 30 35 40

Gym Membership Parking Space

Human Resource
Department ABC CORP.
 Comparison of employee benefits budget (per employee per year)

Budget
200000

150000

100000

50000

0
2019 2018

Budget

 Comparison of ABC Corp.’s Revenue Growth (per year)

Revenue Growth
30

20

10

0
2018 2019

Revenue Growth

 Comparison of Attrition Rate (per year)

Attrition Rate
25
20
15
10
5
0
2018 2019

Attrition Rate

o Reason for leaving: Management, Workload, Benefits, Growth

Human Resource
Department ABC CORP.
 Summary Report of the Employee Benefits Satisfaction Survey conducted by HRD to employees
o Profile
 21 – 36 years old
 50% Females; 50% Males
 12.5% are married with kids
 Average of 1 kid per married employee
o Overall rating

Rating
Very Satisfied
Not Satisfied
2%
At All
13% Fairly Satisfied
Not Very 25%
Satisfied
15%

Satisfied
45%

o Suggestions:
 Performance-Based Bonus  Work From Home Scheme
/ 14th Month Pay  Meal Allowance / Free Lunch
 Clothing Allowance  More than 1 HMO dependent
 Communication Allowance  Salary Loans
 Transportation Allowance  Company Car
 Wellness / Massage
Benefits
 Employee Benefits of Top IT Companies that ABC Corp. doesn’t have
o Profit Sharing Plan o Free Lunch
o Car Loans o Free Transportation
o Salary Loans / Financial o Pension Plan
Assistance o Retirement Benefits
Human Resource
Department
III. PROPOSED IMPROVEMENTS TO ABC CORP.’S EBP
Current Employee Benefit
Flextime Schedule (until 12nn
only)
HMO Card (with 1 dependent)
Group Life/Accident Insurance
ABC CORP.
Proposed Improvement Remarks
Retain Employees enjoy this benefit
starting on their first day and no
complaints were received both
from employees and clients.
However Flextime Schedule
Policy should still be strictly
followed.
Retain Retention due to the following:
- rate of married employees
- age group of our employees
(most of their parents are still
working and are HMO card
holders)
- Average of 15k per year with
annual increases dependent on
usage (huge expense in the
future if not controlled)
Retain Retention due to the following:
- Current Group Insurance and
its riders are still ideal for the
organization
- Insurance provider provides
seminars regarding personal
insurances to employees
Human Resource
Department ABC CORP.
12 Sick Leaves / 12 Vacation Retain Retention due to the following:
Leaves - Average monetary value of 1
SL/VL is at P1,750.00
- Additional leaves would mean
additional days of no work and
may affect urgent tasks.
Educational Assistance Provide larger limit of financial Studies show that further
assistance – from P15,000 to education and/or pursuing
P30,000 per year (at least 2 higher educational degrees (of
semesters). employees) are also beneficial to
company’s competency and
performance. It is just right to
invest heavily on this to have
growth in both employees and
revenue.
Parking Space P8,000 monthly payment of Not really a benefit if not all
parking space can be allotted to employees use cars on their way
a more usable benefit. to work.

One of the least used benefit of

2019.
Gym Membership P15,000/employee/year is not Not really a benefit if not all
being utilized to its full capacity employees are committed to go
since not all employees are to the gym on a daily basis.
committed to use the gym for
the whole year. It is best to allot One of the least used benefit of
the budget to other usable 2019.
benefit.
Human Resource
Department ABC CORP.
Medical Reimbursement Retain Retention due to the following:
- P15,000/employee/year is
generous
- Can be used in buying
medicines, vitamins, and/or
corrective/eye glasses
Laptop Allowance Retain Retention due to the following:
- P10,000/year is generous
- Helps lessen our expenses in
buying desktops/laptops since
our employees would opt to use
their personal laptops for work
- With regular
maintenance/update of system
embedded in their personal
laptop for protection of ABC
Corp.’s data and information
*Data Privacy Act of 2012
Laptop Loan Retain Retention due to the following:
- P35,000/employee with 40%
subsidy on a two-year payment
scheme is just right
- Systems, programs, and the like
required in a laptop is already
provided through our license
capacity
- Beneficial if all employees use
laptops instead of desktop to
ensure portability of resources
 Human Resource
Department ABC CORP.
Retirement Plan Additional Employee Benefit *See Part IV
Pension Plan Additional Employee Benefit *See Part IV
Financial Assistance Additional Employee Benefit *See Part IV
Free Lunch/Snacks Additional Employee Benefit *See Part IV

IV. PROPOSED ADDITIONAL EMPLOYEE BENEFITS

 Retirement Plan
o It would boost our employees’ motivation to stay in our company for many years.
o Government may provide us with tax incentives/credits if we provide this benefit – more
than what the Labor Law stipulate4.
o As per Labor Law, “an employee upon reaching the age of sixty (60) years or more, but
not beyond sixty-five (65) years which is hereby declared the compulsory retirement age,
who has served at least five (5) years in the said establishment, may retire and shall be
entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year
of service”5
o Minimum Retirement Pay = Daily Rate x 22.5 days x # of years in service
o Proposal to have a third party to design a retirement plan based on our financial capacity
and standing.
o Investing in these types of benefits would be advantageous in the long run, especially if
we are talking about employee retention and attraction.
 Pension Plan
o Our employees would have another reason to stay if they would invest their hard-earned
money to their employer.
o It would also provide good performance rating since the rate of this plan is dependent on
the company’s performance, thus also depending on the employees’ output.
o Just like the Retirement Plan, proposal to have a third party to design a pension plan based
on our financial capacity and standing.

4
Balusdan, S. (2018). Witholding on retirement benefits. Business Mirror: Tax Law for Business. Retrieved from
https://businessmirror.com.ph/2018/06/27/withholding-on-retirement-benefits/
5
Republic Act No. 7641: Retirement Pay Law of 1992
Human Resource
Department ABC CORP.
o Just like the Retirement Plan, investing in these types of benefits would be advantageous
in the long run, especially if we are talking about employee retention and attraction.
 Financial Assistance
o Supporting our employees in times of need is necessary in our employer-employee
relationship. It may be a risk, but it is a risk we need to take in order for us to be trusted
and be recognized as kind and considerate employer.
o Providing Financial Assistance, specifically Salary Loans, would be of most help to our
employees during crisis. However, certain conditions should be followed:
 No interest whatsoever;
 Payable to a maximum of 2 years;
 Limit of P20,000 per employee;
 Higher amount should be approved by Management, depending on the gravity of
need;
 Should be a regular employee.
 Free Lunch/Snacks
o Proposal to have the budget for Parking Space and/or Gym Membership be transferred
to Free Lunch/Snacks .
o Parking Space: P8,000/monthly would constitute a P200 budget per employee (40
employees).
o Gym Membership: P15,000/yearly would constitute a P50 daily budget per employee.
 Human Resource
Department ABC CORP.
ESTIMATED BUDGET IF ALL IMPROVEMENTS AND ADDITIONS BE APPROVED
Employee Benefit 2019 Budget 2020 Budget
Flextime Schedule - -
HMO Card P15,000/year P15,000/year
Group Life/Accident Insurance P600/year P600/year
12 SL / 12 VL P42,000/year P42,000/year
Educational Assistance P15,000/year P30,000/year
Parking Space P8,000/month -
Gym Membership P15,000/year -
Medical Reimbursement P15,000/year P15,000/year
Laptop Allowance P10,000/year P10,000/year
Laptop Loan P35,000/year P35,000/year
Retirement Plan - c/o Third Party
Pension Plan - c/o Third Party
Financial Assistance - P20,000/year
Free Lunch/Snacks - P1,000/month

Prepared by:
Human Resource Department