Indirect Compensation In The Public Sector

3528 Words15 Pages
Abstract Employers, especially the public sector, are attempting to implement innovative benefits programs to suit the needs of mass workforces. Because there are a variety of employee desires, a one-size-fits-all benefits program is obsolete. This paper will discuss and analyze such benefits paradigms as Flexible Spending Accounts (FSAs), Employee Assistance Programs (EAPs), family-friendly policies, and flexible benefits packages such as cafeteria plans. The programs discussed in this paper are included to provide insight into the indirect compensation matters in public sector human resource management. Programs such as cafeteria plans, FSAs, and family- friendly policies add much needed help to the public sector to become more competitive in recruitment and retention efforts of its human capital. Additionally, these newer forms of indirect compensation help both employers and employees negotiate work, family, and community needs to create a more balanced and stable workforce. Introduction to An Analysis of Indirect Compensation in the Public Sector Today, the public sector workforce is a heterogeneous group made up of individuals with varying needs and desires. Over 21 million individuals are employed by public entities in the United States, which accounts for approximately 16 percent of the American workforce or nearly one in six workers. With these high personnel rates, a range of indirect compensation choices must be available in order for public sector employers to be competitive with the private sector (Office of Personnel Management, n.d.). Major changes to family relationships, lifestyles, and trends have come about in recent years to the point that traditional programs are becoming obsolete in that “the very nature of the American workplace has changed” (Carre, et al., 2000, p.21). These changes have given way to the need for
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