Introduction
Employee retention is one of the critical issues confronting many employers around the world. In many studies, it has been proven that employee relations and compensation and benefits packages are two of the main factors affecting employee retention. For the purpose of this essay, let’s focus on the Employee Relations and Compensation & Benefits Packages of the US Department of Veterans Affairs. To support our discussion, we will quote Smith & Mazin’s guidelines for successful employee relations and competitive compensation and benefits packages.
VA Employee Relations
Smart employers simply don’t want to lose their best employees. It actually costs resources spent on training and developing them, as well as the relationship that both sides have developed and maintained for years. Employees must be content, motivated, and regularly focused on their work. When the opposite takes place, employees become unhappy, morale and productivity decrease, turnover increases, and worst of all – they might decide to quit their jobs.
Aside from unresolved compensation complaints, lowering employee retention rates are also people-driven: resulting from poor communication, lack of appreciation and recognition, unresolved grievances and conflicts (Smith & Mazin, 2004).
Handling people-driven factors is crucial to the success of employee retention efforts. The following actions must be taken into account:
Promoting effective workplace communication, structuring rewards and recognition programs, maintaining work-life balance, resolving workplace conflicts, and providing competitive compensation and benefit packages are all important factors for a successful organization. The VA Compensation System is one way that employers can ensure their employees are fairly compensated for their work.
VA owes its success to the quality and contribution of its workforce. In return, it provides employees with a comprehensive compensation package that includes competitive pay rates, recruitment incentives, pay increases, premium pay, and incentive pay.
VA Working Hours: Balancing Work and Life Responsibilities
Working Hour Requirements
Flexible Working Hours
Employees can have their own working hour preferences.
Arrival and departure times may vary. Employees may work longer hours but fewer days per pay period. Telework is also an option. These measures are in place to ensure employees maintain a balance between their family and work responsibilities.
Employees may work from home regularly or on an ad hoc basis.
VA recognizes the value of balancing work/life responsibilities. Employees feel more comfortable when they have the option to select their preferred working hours within a day. For instance, an employee can work for less than 7 hours on a certain day and then work for 9 hours the next day. When employees work for longer periods per day, the extra amount of time can either be computed as overtime or used to cover duties for upcoming days, allowing employees to take rest.
Employees’ arrival time can be flexible. The ability to work from home either regularly or on an ad hoc basis gives employees an opportunity to manage personal matters while performing their job duties.
Typical employers do not offer such working schedule flexibility. In most cases, employees are forced to stick with their working schedules. When an employee commits tardiness or works under the allotted time, the cost of damaged time is deducted from their salary, which can make employees unhappy, especially when they know that their mistake was unintentional. This is one type of problem that commonly occurs in fixed working hour systems where both employers and employees are governed by operational policies and specific organization’s working hour laws. Although most of these policies are government-regulated, they still offer no protection for employees who frequently commit tardiness or work under the allotted time, whether intentional or not. As a result, both employers and employees must adhere to the agreed-upon working schedules. Generally speaking, VA’s flexible time is preferable.
VA Compensation Rates
RATES:
- BASIS: Starting Rates
- Education and trainings attained
- Period of experience
- Duties required by the position
- Guidelines from professional boards
- Adjustments for specific locations to keep pay competitive
Recruitment Incentives:
Newly Hired but eligible may receive the following:
Recruitment, relocation, and retention bonuses are all offered at 25% of the basic pay rate. Additionally, pay increases are available through regular performance-based evaluations as well as accelerated increases for outstanding performance. Pay comparability increases approved by the President are also provided. Premium pay is determined based on work schedules.
Overtime work, Sunday work, Saturday work, holiday work, time spent on-call, and evening and night work are all factors that can affect an employee’s salary. At VA, the starting rate is attractive and directly proportional to the type of duties performed and the amount of time spent on those duties. According to Smith and Mazin (2004), salary rates should be based on job duties and time spent performing them rather than job title or description. This approach addresses employee complaints about executives receiving higher pay despite potentially working less than other employees in more hazardous roles. Unfortunately, private employers often prioritize paying executives high salaries over compensating employees who face greater risks.
Education and training acquired by employees before hiring or during service is credited by VA. This is often connected with promotion to higher positions. When employees are assigned to specific locations, VA adjusts pay rates when necessary to help them enjoy the kind of comfort they deserve. Employers must have a good estimate of the cost-of-living and inflation rate to make necessary adjustments (Smith & Mazin, 2004, p. 105).
The best thing about VA being federally funded is that it can afford to give salary rate adjustments. In contrast, most private sector employers’ salary rates are constantly threatened by business outcomes. Higher degrees of failure may directly affect salary rates resulting from cost-cutting reduction efforts.
With VA and many government organizations in other countries, employees often enjoy higher salary rates and more benefits. This is another factor why employee retention rates in terms of salary comparison remain high.
The recruitment incentive given to eligible employees is high. According to the US Office of Personnel Management website, this type of incentive is given to newly hired employees when positions are difficult to fill. The website also provides a list of eligible positions, including General Schedule (GS), Senior Level (SL), Scientific or Professional (SP), Senior Executive Service (SES), Federal Bureau of Investigation and Drug Enforcement Administration (FBI/DEA) SES, Executive Schedule (EX), and law enforcement officer. Requests for recruitment incentives for other positions may be submitted for approval by the Head of an Executive Agency.
During the ongoing service of an employee, VA gives regular increases based on their performance, an accelerated rate for outstanding performance, and a comparability rate approved by the President.
Compared to private employers, the VA recognizes the value of time spent by employees beyond their working schedules or holidays. Private companies often face problems with issues concerning premium rates because they do not give credits to employees for extra time spent. Whether the extra time is voluntary, approved by managers, or not, employees are entitled to their pay (Smith & Mazin, 2004, p. 104).
VA Leaves and Vacation
Below is a table that shows the vacation, sick, and holiday leaves entitled to VA employees. This demonstrates how VA values Work/Life Balance, which is crucial in creating a healthy and comfortable working environment for all staff.
Annual Leave
Observed Holidays
VA observes 10 paid federal holidays per year:
New Year’s Day, Martin Luther King Jr.’s Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day and Christmas Day are all recognized holidays at VA.
Annual Leave Vacation allows for a minimum of 13 and a maximum of 26 days per year. Accrued annual leave can also be used as time off to attend to personal business, emergencies and family needs.
All employees are allowed to have 13 days of sick leave a year. There is no limitation on the number of days which employees can carry over from year to year. Sick leave can be used for family care, bereavement or adoption matters.
When leave extension is needed VA allows for up to 12 weeks of unpaid Family and Medical Leave during childbirth or caring for newborns; placement of a child for adoption or fostering; serious medical conditions affecting the employee or their spouse, son/daughter or parent.
The Leave Sharing program allows any employee to voluntarily transfer annual leave to cover reasonable absences of co-employees under the Voluntary Leave Transfer Program.
Court Leave is paid time off that VA encourages its employees to use when fulfilling civic responsibilities.
Bone Marrow and Organ Donor Leave provides seven days excused absence per year with full pay for bone marrow donors and thirty days paid leave per year for organ donors.
Military Leave and Reinstatement adheres with the Uniformed Services Employment and Reemployment Rights Act (USERRA) as well as other applicable laws regarding all leave and employment rights for VA employees serving in the Armed Forces.
VA employees have the benefit of Leave Sharing, which is not commonly offered by other employers. This system demonstrates the strong working relationship and trust among employees. It is rare for an employee to willingly transfer their leave to cover a co-worker’s absence. The VA’s system allows for sufficient flexibility in terms of employee breaks and annual vacation time.
One unique feature of VA’s sick leave system is that it does not set any limitations on the number of unused sick leave days that can be carried over to the next year. In contrast, other companies specify a maximum number of sick leave days that can be carried over.
VA Employee Recognition
VA Awards:
- Superior Performance Awards
- Special Contribution Awards
- Quality Step Increases
- VA Honor Awards
- Non-Monetary Recognition
VA recognizes the outstanding performance of its employees, which is crucial for maintaining good working relationships at all levels (Smith & Mazin, 2004, p. 76). The organization has a well-structured reward and recognition system that is designed to be competitive. To achieve this competitiveness, the system must be based on a Performance Appraisal process with structured procedures (Smith & Mazin, 2004, p. 42-46).
VA Employee Assistance Programs
On-Site Child Care
Employees are allowed to bring their children to work. VA has an On-Site Child Care center that caters to employees’ children of different ages, providing the following services:
Educational programs are available to teach family values, as well as social, cognitive, and physical development. Parents can also enjoy meals with their children. Additionally, eligible employees have access to Lifecare/Worklife4You for free. This program provides:
Get personal and professional assistance for financial and legal matters, health and wellness, elders’ services, and more.
Take advantage of VA’s tax-lowering spending accounts with Flexible Spending Accounts for employees.
Health Care Flexible Spending Accounts allow employees to reimburse up to $4,000 per year for out-of-pocket expenses on a pre-tax basis. This covers medical, dental, and vision expenses.
Dependent Care Flexible Spending Accounts allow employees to reimburse up to $5,000 per household per year for eligible day care and elder care expenses on a pre-tax basis.
Child Care Subsidy: VA provides funds for quality child care for employees’ children. These funds can be used to offset the cost of before-school or aftercare programs or summer care programs.
Transit Subsidy: Employees who regularly commute to and from work are eligible for commuting cost reimbursement each month up to the maximum allocated amount.
VA has plans to ensure long-term income security.
VA employees are encouraged to plan ahead for their future. Below is a table that shows VA’s income protection packages:
Thrift Savings Plan is the government’s version of the private sector’s 401K plan.
Contributions are made from pre-tax dollars, and investments and earnings are tax-deferred until they are withdrawn. The plan offers a variety of investment funds to choose from, and it allows for the transfer of money from other eligible retirement savings plans. Additionally, the government contributes 1% of an employee’s salary plus other contributions up to 5%. Life insurance is also included in the plan, with Federal Employees’ Group Life Insurance (FEGLI) providing affordable coverage and benefits that can be carried into retirement.
VA pays 1/3 of the Basic Life Insurance Premium which includes Standard, Additional, and Family coverage. In addition to this, employees can also plan ahead for their future healthcare needs with Long Term Care Insurance. This insurance covers a wide range of services including nursing home care, assisted living facility care, home health care, hospice care, respite care and other long term care services.
It is worth noting that VA is contributing a reasonable amount towards employee insurance plans. Many employers nowadays are depriving their employees of the same benefits, especially when their companies are under cost-cutting efforts. The problem with other employers, particularly in the private sector, is that they often make late payments for insurance despite deducting these amounts from employees’ salaries.
VA Health Care and Benefits
TYPES
Description:
Health insurance through the VA is comprehensive, affordable, and flexible. The VA contributes approximately 75% of the biweekly health benefit premium. Employees can choose premium conversion, which allows for payments to be made with pre-tax dollars.
Employees have the option to choose from:
There are various healthcare options available to employees, including:
- Health Maintenance Organizations (HMOs)
- Fee-for-Service Health Plans
- Employee Assistance Programs
The VA also offers assistance to employees and their family members with wellness assessment, referral, and short-term voluntary counseling. Additionally, health and fitness facilities are available.
To prevent long-term health problems such as glaucoma, high cholesterol, diabetes, and depression, regular health checkups are provided through healthcare screenings.
Healthcare centers staffed with trained physicians and nurses are also available to provide these screenings.
In addition to these resources, healthcare seminars can be conducted to increase employee awareness of health problems.
The beauty of working for the VA is that, as an organization dedicated to providing quality service to American veterans, VA employees can enjoy similar benefits. One such benefit is a competitive compensation and benefits package that includes assistance programs (Smith & Mazin, 2004, p. 136). The VA offers a variety of services from which employees can choose. In contrast, private employers often struggle with the cost of providing employee assistance services; the higher the cost, the more likely it is to be neglected.
VA Continuing Education and Reimbursement.
Another way of maintaining work-life balance for employees is through VA’s training and educational programs. Employees can voluntarily or necessarily enroll in courses that are crucial to improving their performance. It’s good to know that VA provides its employees with continuing support for growth and development while conducting federal service.
TYPES
Description:
- Student Loan Repayment: VA offers a Student Loan Repayment Program to eligible employees, providing $10,000 per year and a lifetime maximum of $60,000 to help repay student loans.
- Tuition Reimbursement: VA provides monetary awards for medical or work-related training support or student loan payments. The VA has two programs available:
- The Tuition Assistance Program, which provides up to $4,500 per fiscal year for approved courses.
- The Employee Incentive Scholarship Program, which offers scholarships of up to $2,500 per semester or quarter.
The Employee Incentive Scholarship Program (EISP) offers scholarships for earning a degree or training in health care disciplines where recruitment or retention is difficult. To qualify, applicants must have at least 1 to 3 years of full-time VA service.
The Education Reduction Repayment Plan (ERRP) allows employees to loan up to $45,364. To qualify for this program, employees must be appointed to direct patient care services or service incident to direct patient care.
VA offers various employee training and educational development programs.
TYPES
Description
Online Learning
VA Learning Online (VALO) is a web-based learning platform that offers 1500 e-learning courses. Employees can access these courses 24 hours a day, whether they are at work or at home. This platform aims to provide professional development opportunities for employees.
VA Knowledge Networks
The VA provides state-of-the-art digital satellite systems that deliver learning and professional performance development aired on four channels 24/7.
Colleges and Universities
Employees can sign up for general or specialized coursework from nearby universities and colleges. They may also elect for temporary assignments to other agencies to broaden their work experiences.
Managers and Executive Training
The VA sponsors a nationally recognized executive development program in partnership with private sector organizations and universities.
VA Retirement Benefits
Retirement Benefits
VA employees are part of the Federal Employees Retirement System (FERS), which offers:
Monthly retirement benefits are available after 10 years of Federal Service. Additionally, portable retirement benefits are offered where Social Security Components can be carried over to an employee’s new employment. Disability Retirement is also available, as well as Long-Term Disability benefits which require at least 18 months of federal service.
VA recognizes the value of employees’ years of federal service. The Federal Employees Retirement System is a retirement plan that provides benefits from the Basic Benefit plan, Social Security, and the Thrift Savings plan. Both Social Security and the Thrift Savings plan can be carried over to your next employment if you leave federal service before retirement.
Comparison with Other Employers
In general, VA’s employee relations and compensation and benefit packages offer more advantages to employees compared to employers, especially in private sectors. The flexible working hours, unlimited sick days that can be carried over to the next year, retirement plan, income protection strategies, and employee assistance programs provide comfortable and balanced work-life opportunities for its employees.
Recommendation:
Based on my personal understanding, VA’s employee relations and compensation and benefits packages are effective. However, to maintain a good working relationship and high employee retention rate, they must be mindful of their work-life balance ideals. Providing flexible working hours for employees is beneficial, but if not implemented structurally, it can become detrimental. Employees may develop sarcastic behavior (abusing the flexibility of working hours) over time under this type of condition. To avoid this, VA should regularly provide recognition and reward systems, conduct performance appraisals regularly, inform employees about VA’s short- and long-term goals regularly, and motivate them to cooperate in achieving VA’s goals.
References:
Smith, S. and Mazin, R. (2004). The HR Answer Book: An Indispensable Guide for Managers and Human Resource Professionals. United States of America: Amacom.
The website of the United States Department of Veterans Affairs provides information on job benefits available through the VA. The page can be accessed at http://www.va.gov/jobs/job_benefits/benefits.asp and was retrieved on Feb. 10, 2009.
The website of the US Office of Personnel Management can be accessed at http://www.opm.gov/retire/. This information was retrieved on February 9, 2009.
