Objectives:-

Objectives are the statements that state how the goals are achieved. They should be very concrete and specific in nature.

Objective of the study:-

The purpose of doing this project is mainly to make thorough study on employee relationship and benefit administration at Solugenix.

 To study the Employee relationship at Solugenix.  To study the employee job satisfaction and employee morale at Solugenix.  To understand the benefit programs offered at Solugenix.  To evaluate employee benefit programs as per industry standards.  To understand performance.  Suggest improvement in the existing system if necessary. the impact of motivational factors on employee

COMPANY PROFILE

COMPANY PROFILE

MISSION:

Solugenix was founded in 1969 by T. Russell Shields. It was known then as Shields Enterprises Incorporated, and later as SEI Information

technology. Through the years, the IT consulting business helped generate ground-breaking, industry-defining solutions. Before cell phones even became known to the general public, we developed the first cell phone billing systems. Our systems are in the DNA of most cell phone billing systems today. Before anyone believed in the practicality of it, we developed a comprehensive database and tools for geographic navigation. Our mapping and routing applications were the first to be deployed on the Internet - even before the web came into vogue.

Most mapping and routing solutions on the web today - include Yahoo Maps and Map quest - have some code and data that we developed in the 1990's. We also pioneered a structured approach to technology support for the quick service restaurant industry in the 1980's, when that industry was used to fragmented, spotty support.

Today, all these solutions are thriving as independent companies or parts of industry. Solugenix continues this spirit of innovation into the new century by leading the industry with innovative, important solutions for the changing times: Compliance issues for the Financial Services industry and Offshore Outsourcing issues for US corporations.

In a company-wide name contest, Solugenix employees chose the new name Solugenix to emphasize our relentless focus on generating solutions that are relevant and pioneering.

VISION: What makes Solugenix special?

In an industry known for its volatility and short-term focus, Solugenix has endured the test of time and still leads the thought on today's issues.

We approach all relationships from a long-term view: with an emphasis on the long-term value to both partners - not short-term exigencies.

We are an employee-owned company. All employees own stock of the company through a broad based ESOP plan. "People are our best asset" is not a clich to us: we believe in it and we show it through our actions.

More than anything else, the quality, professional maturity and dedication of our people make us special. EXPERIENCE Solugenix Corporation delivers customized service solutions which support the evolving business needs of our world-class clients. Our consulting and managed services are tightly focused on continuous improvement to ensure that our clients optimize their IT investments.

These are a few of the industries the Solugenix team has served over the years. y Financial Services Solugenix consultants have helped multinational financial corporations develop, enhance, and support sophisticated solutions that strengthen their competitive edge. One of Europe's largest banks turned to Solugenix consultants for project management in preparation for a Federal Reserve

Board examination. Our custom-built solutions include decision support, profit/loss analysis, and portfolio management systems. Financial Services is still the largest area of Solugenix operations today.

Education Solugenix solutions have helped educators focus on making a difference in the classroom. Solugenix consultants developed a Web-based system for DePaul University's Center for Urban Education that not only saved the organization $70,000 in its first year, but helped administrators get ahead of their case loads and proactively address problem patterns.

Entertainment

Global top 10 entertainment companies have turned to Solugenix consultants for specialized systems that meet their specific business needs, such as supporting the production of animated features and managing the availability of rights for diverse products across geographies, timeframes, and media type. We have also created sophisticated applications to manage DVD production and the distribution of home videos to retailers.

Healthcare

For more than two decades, our consultants have worked with a wide array of healthcare organizations-medical centers, pharmaceutical multinationals, and industry groups-to enhance the patient experience. We have developed systems that have supported the management of patient care, automated the

prescription process between doctors and a major pharmacy chain, and disseminated health resources via the Web.

Legal From industry-specific software packages to complex billing systems, we understand the unique legal technology environment and the need for immediate, high-quality service. Our consultants have a proven track record in delivering diverse, flexible services, including global technology deployments, to leading firms such as Baker & McKenzie.

Introduction to Employee relationship in general

Employee relationship

Employees play a significant role in an organization. Among all the four resources land labour, capital and machinery, employees are considered as important and

effective resource. Human resource consists of skills, knowledge, abilities and qualities of an organization. Employees are the key for the success of any business. To retain the efficient people and attract experienced and skilled workers, the business should maintain good employee relationship. Thus effective employee relationship must be maintained for an effective organizational performance. Employees in the job market today are seeking comprehensive benefits & compensation packages. Moreover, if the organization does not have good employee relationship, then the competitor certainly takes the advantage of it. Employee relationship takes care of day-to-day activities in the organization, A good employee relationship programs tries  to reduce the anxiety of the employee,  improves the communication between the employees,  Increases the employee morale and employee performance.  it reduces employee turnover in the organization and attracts efficient people from outside and improves the knowledge and skills required in the organization .  It also helps in reducing the conflicts among the employees and maintains organization culture and improves it. It takes cares of benefit and services for the development of the employees. Employee relationship to be complete must also include employee benefit and services administration and also identification developmental needs of employees.

Objective of Employee Relationship:y Good employee relationship is expected to aid the human resource management. y It is to help establish a cordial relationship between the management and its employees. y It should enable the manager to have an integrated approach to the situation in which he manages the business. y It is supposed to establish a mutual regard and recognition vertically and laterally. y A socialization of organization is expected while improving employee relationship. y It facilitates employee s involvement in the affairs of the organization leading to better productivity. y It is expected to act as a good motivator and facilitate mutual cooperation and Oneness in the organization. y Employee morale and job satisfaction are expected to improve as a result of cordial employee relations in organization

Importance of employee relationship in an organization

Employee relationship plays a crucial role in an organization; it is used to reduce the dissatisfaction among the employees, maintain hygienic environment for appropriate working conditions. Maintain high motivation level all the time to improve the productivity and development of employees. Solve the existing problem to promote good organization culture. Plan benefit programs to motivate the employees and retain capable employees from leaving the organization by providing good compensations and incentives. y Minimize dissatisfaction level.

y y y y y

Plan employee welfare programs and their safety measures. Maintain hygiene and motivation levels. Help employees in problem solving. It avoids the conflicts among the employees. Helps in proper functioning of organization.

Employee relationship communication includes:Dealing with boss: Dealing with the boss is an important as an executive s existence itself. Every executive must have a special skill and ability to deal with his boss. The subordinate s ability to get along with the boss, irrespective of his weaknesses, is an important determinant of his success. It is appropriate for the subordinate to conform to the policies, strategies, objectives and goals conveyed from the top. He must be able to make his superior s strengths productive, and to convert his subordinates potentiality into productivity. Dealing with peers: Dealing with the peers is another important challenge as they stand equal in rank and respect. An effective manager knows how to get along with his peers in his own and other department, cooperating with them in their tasks and not indulging in things which are not concerned with them. It is always proper to reserve reactions when one is in provocation, and control one s emotions when one is likely to lose temper. This is essential, especially in dealing with the peers. Line-staff conflict, conflict between departments, conflict of generation gap, stresses due to role conflict, and so on crop up in the relation between peers.

Proper approach on the part of the executive in dealing with peers will go a long way in preventing many such work place conflicts. Dealing with subordinates: Manager s behaviour to his subordinates is another determinant of his effectiveness. It is always appropriate on his part of the superior to bear in his mind that his subordinates are not machines and they cannot work like machines. They are also individuals human beings with passion, pride, prejudice, strengths, weaknesses, emotions, feelings, temperaments, and so on. They may not always be as efficient as the superior expects them to be. Therefore the responsibility of the manager is to take into account all such aspects, and to provide a conductive environment and motivation to the subordinate. The superior s behaviour has a considerable role to play in this respect. Dealing with problem employee: Among the various types of people a manager has to deal with, problem employees are important. If the problem is not properly dealt with, one problem employee can create problems for all. A little fire may consume a large forest, a small hole can sink a huge ship, a weak link can weaken a strong chain, and a problem employee can create problem for the whole organization. Hence, dealing with a problem employee is not a matter of less importance for a manager. Manager s imaginative approach and thoughtful behaviour are essential in dealing with every problem employee. Catharsis is a good method to deal with a problem employee, which is the discharge of emotional tensions. Even counseling is very positive method to deal with a problem employee.

Who is an employee and who is not.

An employee is... An employee is anyone who has agreed to be employed, under a contract of service, to work for some form of payment. This can include wages, salary, commission and piece rates. An employee is not... y a volunteer, who does not expect to be rewarded and receives only a reimbursement for their expenses y y y a self-employed or an independent contractor a sharemilker a real estate agent who has a contract that says they are an independent contractor. Indications of being an employee If all or most of these features are present in a work relationship, it is likely to be an employment relationship between employer and employee: y The intention of the employer and employee is to form an employment relationship, and this is shown in any written agreement or correspondence and/or by the behaviour of the parties to it. y y y y The employer or their agent controls the hours worked. The employer or their agent has the power to hire and fire. The employer makes the profit or loss from the enterprise. The employer deducts ACC premiums and PAYE tax on behalf of the employee. y The employer supplies materials for the work.

y y

The employer owns or leases the equipment needed. The employee is bound to one employer at a time and is expected not to compete or offer his or her skills to competitors of the employer.

Indications of being a self-employed contractor If all or most of the following features are present in a work relationship, it is likely to be a contract for services involving a self-employed contractor: y The intention of the parties to the contract is not to form an employment relationship, and the actual nature of the relationship reflects this. y y The contractor controls how and when the job is done. Payment is made in a lump sum at the end of a job, or in installments as progress is made on the job. y The contractor can choose who does the job and can hire other people without approval from the other party. y y y y The contractor pays any tax, ACC and insurance directly. The contractor can make a profit or suffer a loss directly. The contractor supplies equipment and materials. The contractor is free to accept similar work from a number of sources at the same time. Employee or contractor? Sometimes it is not clear whether someone is an employee or a self-employed contractor. This can be the case where: y someone is engaged as a self-employed contractor, but they think they are really an employee; or, more typically y during the course of either an investigation by a Labour Inspector, in the course of mediation or before the Employment Relations Authority, where

there is an action, say to recover arrears of wages or holiday pay, the actual nature of the relationship sometimes comes into question. Here, mediation assistance can first help settle the real nature of the relationship or the Authority can determine the matter. Also, the Employment Court can be asked to determine employment status either of an individual or a group of people in the same position. Home workers are employees Anyone who works for somebody else in a private home (other than work on the house or its fittings or furniture) continues to be classed as an employee under the Employment Relations Act 2000. This might be so even if the arrangement does not look like an employment relationship. For example, a person who works at home and buys in material to make a product that is sold back to the provider could be considered a home worker. People intending to work are employees The Employment Relations Act 2000 says that people who have been offered and have accepted employment are employees from the date of acceptance. They have the rights of employees. This applies even if the employees have not actually started to do the work.

Fixed-term and seasonal employees

Sometimes employers and employees agree that employment will be for a set period of time (e.g. for six months) or until a certain event occurs (e.g. until a particular project ends) or until work is completed (e.g. until the fruit is picked). The basic rights and obligations of employees and employers apply to fixed-term and seasonal employment, except that the employment relationship ends at the end of the fixed term. The way in which provisions for annual holidays, sick and bereavement leave are applied can vary for these employees Note, however, that employers must have genuine reasons for the fixed term. An employee cannot have a fixed-term arrangement when the job is really a permanent one. Also, employers have some special obligations when employing employees on a fixed term. They must set out in writing, in the employment agreement, the reasons for the fixed term and how the employment will end. Casual or part-time employees Sometimes employment is on a casual basis. In other words, the employer and employee agree that the employer will offer the employee work when work is available. Temping agencies often employ people on this basis. At other times, employers employ employees on a part-time basis (e.g. 7am to 10am on Tuesdays and Thursdays). The basic rights of full-time employees apply equally to part-time employees. These rights also apply to casual employees, but the way in which provisions for annual holidays, sick and bereavement leave are applied can vary for these employees.

Probationary or trial employees

Employers and employees may agree to an initial probationary period or trial period. This must be recorded in writing in the employment agreement. The basic rights and obligations of employees and employers apply to probationary employment. Employers have some special obligations when employing employees on a probationary arrangement.

Employee safety
Employee safety:- ever since the beginning of this century, employee safety and accidents have been attracting the attention of the psychologists, sociologists and industrial engineers. As an employer, he has the responsibility to provide a safe working environment for their most important assets, their employees! If an employee becomes injured at work, business may suffer. One of the highest priorities that an employer must consider is taking the necessary time and initiative to help protect employees. Ergonomics Visual Display Terminals: - It is important that employees are educated on the proper positioning of all elements within an employee s workspace. There are a variety of recommendations that can be followed in an effort to reduce the onset of injuries, including: y Limit twisting and unnatural body positions by placing everything that is needed regularly in close proximity.

Make sure that the visual display screen is positioned directly in front of the individual and at a comfortable height, preferably at or just slightly below eye level.

y y

Set the contrast or brightness of the screen to suit personal viewing. Position the keyboard and mouse directly in front and close to the individual.

Adjust the height of the workstation chair so that feet are firmly resting on the floor and weight is evenly distributed over the full seat surface.

Adjust the armrests of the chair and the position of the keyboard so they are in a neutral alignment, so that the arm, wrist, and hand also take on a neutral position when typing and using the mouse.

Perform simple exercises throughout the day to help reduce tension or stress that might be built up due to excessive computer work.

Employee health:One of the important areas which fall under employee relationship is employee health. Professional efficiency, good health and productivity are interrelated. Good health can promote high employee morale and productivity i.e. a healthy employee can work full time and has a greater productivity potential. Good employee health is also associated with better capability and leadership. Good health leads to positive attitude. The employees with good health are generally enthusiastic and try to achieve higher and higher goals in life. The world health organization (WHO) defined health as a state of complete physical, mental, and social well being and not merely an absence of disease or infirmity.

Objective of organization health:The basic objective is prevention of disease and injury rather than the cure of the disease. y The promotion and maintenance of the highest degree of the physical, mental and social well being of employee. y The prevention of factors which make ill health in their working conditions. y The protection of the employee in their occupation from risks arising from factors which are adverse to the maintenance for the health. Significance of employee health:y y y y y y y The employee health is significant because of the following reasons: To maintain and improve productivity and quality of work. To minimize absenteeism and employee turnover. To reduce industrial unrest, indiscipline and accidents. To improve employee motivation and morale. To reduce spoilage and cost of operation. To preserve the physical and mental health of employees.

Mental health of the employees:- the employee should adopt the following measures to improve the mental health of the employees because a mentally tense, anxious and sick persons has a tendency to develop various symptoms of organic:

Ensuring all facilities to employees in time to avoid tensions and diversion of mind.

y y

Prompt decision making regarding the cases of the employees. Ensuring transparency in administration to develop confidence and commitment among employees.

Encouraging honest and hardworking employees to create mental happiness. Psychologists have proved the motivational value of the nonmonetary factors. Such motivation to self actualize would lead to mental happiness.

Locating shirkers and providing counseling to them, to protect the mental health of the organization.

y y y

Inculcation of ethical values. Improve interpersonal communication at all levels. Arrange regular sessions to teach workers how to reduce stress by techniques like yoga, relaxation exercises etc.

Social health of the employees:-social health is another dimension of the employees health. Social health means how an individual can have health relations with persons with whom he comes in contact. The following measures may be initiated to ensure The social health of the employees: y Arranging meetings in office time to involve the employees, so that a sense of belongingness can be created in them. y Provision of the good staff clubs with all amenities of indoor and outdoor games. This informal relationship among employees and their families can generate bonds of friendship. Love and affection and these feelings can be transferred on the work situation.

Free access to seniors to remove a large number of tensions and unnecessary reference.

Arranging cultural programmes during festivals or other occasions so that employees can get relaxed and feel charged.

Arranging tours to nearby scenic places or hill stations to refresh the minds of the employees and to accelerate the rate of social interaction.

Spiritual health of the employees:- Health has its base in spiritual powers. Organization can arrange different lectures on spirituality which can keep the health of the employees in the good shape as well move them to positive actions. Many medical schools in the USA are offering courses in spirituality, religion and health. Studies have found that religious folks have lower blood pressure, less depression and anxiety, stronger immune system and generally spend less money on medicines than people who do not believe in the existence of god and are less involved in religious activities. Scientists cannot prove that god heals but they can prove that believe in god has a beneficial effect. There is little doubt that healthy religious facts and practices can help people get better. We can say that physical, social, mental and spiritual balance is the most desirable for the perfect employee s health. Thus, the employer s should devise ways and means to develop physical, social, mental and spiritual capabilities of the employees to generate and happiness in the organization.

Employee welfare Employee welfare:-employee welfare activities benefit not only the employee but also the management in form of greater organization efficiency.

Significance of employee welfare:- The basic objective of employee welfare is to enable employees to live a richer and more satisfactory life. Employee welfare is in the interest of the employee, employer and society as a whole. Benefits to employee y Welfare facilities provide better physical and mental health to the workers and make them happy. y Welfare facilities like housing, medical benefits, education and recreation facilities for the worker s families help to create contended workers. y Improvements in material, intellectual and cultural conditions of life, protects workers from social evils like drinking, gambling etc. Benefits to employer y Welfare measures help to improve the goodwill and public image of the enterprise. y Welfare serves to maintain some peace with the employee s unions. Employee welfare also helps to improve employee relationships and organizational peace. y Employee s turnover is reduced due to the provision of welfare facilities. Employees take active interest in their jobs and work with a feeling of involvement and satisfaction. y Employers secure the benefit of high efficiency, cordial employee relations and low absenteeism and turnover.

Benefits to society Employee welfare is also in the interest of the larger society because the health, efficiency and happiness of each individual present the general wellbeing

of all. Well housed, well fed and well looked after employee is not only an asset to the employer but serves to raise the standard of organization and employee in the country. Types of employee welfare services Within the organization services y y y y y y medical facilities recreational facilities libraries canteens rest rooms Washings and bathing facilities.

Out side the organization services y y y y y y y housing accommodation children education sports fields holiday homes leave travel facilities Interest free loans. Transportation

Introduction to benefits programs in general

Benefit programs: -

Employee benefits have a significant financial and administrative impact on a business. The educated American work force has come to expect a comprehensive benefits program; the absence or inadequacy of such a program can seriously hinder a company's ability to attract and retain the best personnel. Designing the right benefit plan for your employees is a complex task that includes taxes, legal aspects, funding, and selection of vendors or administrators.

Effective management of employee benefits is an important means by which organization successfully attract, motivate and retain employees. The employers should establish and maintain as employee benefits programs that reward the efforts of employees in the organization. Cash compensations received inn the form of wages, salaries and incentives, comprise direct compensation, which forms a major part of organizational cost. Benefits and services also referred to as indirect compensation, account for the about 40% of an average firm s costs in United States and even higher in percentage in European countries. Employers have sought to increase indirect compensation to motivate and retain employees, discourage labor unrest and remain competitive in employee market. Employees seek benefits and services from the employer to take advantage of low costs, taxes and inflation protection. Moreover, they view benefits and services as a means to increase the quality of work life. The level and type of benefit program available to employees varies widely from firms to firms. Many organizations have adopted flexible benefit plans. The management decides the benefits programs by assessing employee preferences, considering the rules of administration and after analyzing the cost of benefits.

What is an Employee Benefit Plan?

An employee benefit plan protects employees and their families from economic hardship brought about by sickness, disability, death, or unemployment; it provides retirement income to employees and their families; and it provides a system of leave or time off from work. A comprehensive benefit plan can include health insurance, disability insurance, life insurance, retirement plan, flexible compensation (cafeteria plans), and leave from work. Broadly defined, a benefit plan can include other components such as bonuses, service awards, reimbursement of employee educational expenses, and other benefits appropriate to employee responsibility. Why Offer Your Employees Benefits? Here are some of the reasons employers offer benefits: y y y y To attract and hold capable personnel. To keep up with competition. To foster good morale. To provide opportunities for advancement and promotion as older workers retire. A combination of benefits programs is the most effective and efficient means of meeting employees' economic security needs. For many employers, a benefit plan is an integral part of total compensation, because employers either pay the entire cost of a benefit plan or have employees contribute a small portion of premium costs for their coverage

Employee benefit and services includes:-

y y y y y y y

Leave Programs Health and Life Insurance Benefits Retirement Benefits Survivor Benefits Long Term Care Insurance Flexible Spending Accounts Health Savings Accounts

Retirement and Benefits y y y y y y y y Retirement Leave Health Insurance Life Insurance Long Term Care Insurance Flexible Spending Accounts Work/Life Enrichments Survivor Benefits

401(k) Plans
401(k) plans are retirement plans that are designed to encourage long-term retirement savings by employees. 401(k) plans need to meet a variety of rules contained in Section 401(k) of the Internal Revenue Code. But these be plans are very popular among companies and employees

Here are the key features of such plans:

Employer contributions: The employer can contribute to the plan (subject to certain limits) for the employee's benefit, and the employee doesn't have to pay immediate income tax on that contribution. Employee contributions: The employee can elect to contribute a portion of his or her salary to the plan, and then the employee doesn't have to pay immediate income tax on that contributed salary. Investment of contributions: The employee can choose how to invest contributed money (in stocks, bonds, and other qualifying investments, for example). Tax deferral: The taxes on the contributions and the plan's investment earnings are deferred until the employee withdraws them (generally at retirement). Loan: In some instances, a participant may be able to take a loan against the 401(k) account, and as long as the employee repays the loan before taking a distribution from the plan, the funds remain tax deferred. Withdrawals: Unless the employee is age 59 or another exception applies (such as total disability), withdrawals by an employee may be subject to both a 10 percent penalty and regular income tax. Rollovers: Penalties and taxes generally do not apply if the employee changes jobs and "rolls over" his or her sums in the plan to the new employer's qualified plan that accepts rollovers. Penalties and taxes can also be avoided in certain circumstances for rollovers into an IRA.

Incentives plans

Incentive plans are designed to compensate employees for work done, skills they have acquired and used, the time they spend on their jobs, etc. There are a variety of possible arrangements that can be made including: stock options, bonuses and profit sharing plans, flexible schedules, telecommuting or additional vacation days. The type of incentives organization offer will depend largely on: y y y y y The size of your business and number of employees The structure of your business The profitability of your business The level of experience and base salaries of the employees The economic climate

Some of the incentives systems the organizations commonly used are:

Stock option plans: Stock option plans are typically structured so that an employee must be employed by the company for a certain amount of time before he is able to exercise the option (often referred to as "vesting"). For example, a company may offer a stock option of 10,000 shares, vesting equally each year over four years. This means that the employee can, after one year, exercise options for 2,500 shares at the option price set forth on the initial date of grant. If the stock has doubled or tripled in the course of the year, the employee can exercise his option to take ownership of the shares and then sell them for a profit. If, however, the stock has remained the same or the per share price has dropped, the employee can deicide not to exercise his option at that time. In recent years, employees have met Stock Option Plans with less enthusiasm than in the late 1990 s. As the stock market took a downturn, the incentive of

receiving options became less of a motivating factor. Nonetheless, since the stock market has traditionally rebounded over time, Stock Option Plans still remain a valuable part of a long-term incentive package for employees who are expected to remain with the company for many years. When the economy is strong, Stock Option Plans can make employees very wealthy as they share in the success of the company. All of the terms, including the time frame, vesting, the exercise price (typically the market price at which the employee can purchase shares of the stock) and the total number of shares of the stock to be issued should all be clearly detailed in the Stock Option Plan.

Bonuses: A monetary bonus can certainly serve as an incentive. However, it can also set a standard that can be hard to follow. Once word spreads that an employee received a monetary bonus, others will anticipate the same for their good work. Therefore, unless the bonus is part of an Employment Agreement, you need to establish a policy that details the expectations of an employee before he or she will be eligible to receive such a bonus. Any plan to offer monetary bonuses should be made prior to the annual budget so it can be included as a budget item. Bonuses are typically determined based on a percentage of the employee s salary in conjunction with his or her position and/or standing in the company and the value of the work he or she has performed.

Besides cash bonuses, other types of incentive bonuses include: y Gifts

y y

Extra vacation time Extra personal days

Profit sharing plan: If a company is doing well, sharing profits with employees serves as a very strong incentive. Such plans will need to be carefully designed and spelled out. Typically, the company will set a starting point for determining when profits will be shared, such as once the company earns profits of at least $250,000 for the fiscal year. What percentage will be shared and who is eligible to benefit from the Profit Sharing Plan must also be determined in advance. For example, a company might decide that 15% of all profits over $250,000 will be distributed to all senior employees who have been with the company for at least three years. Each employee will receive an amount based on his or her salary at the end of the previous calendar year. All of these parameters should be decided upon with the help of your financial advisor and/or attorney. Retirement plans: Many companies offer 401(k) plans, which are retirement plans for long-term employee savings. Employees may contribute up to a certain amount of their salaries into the retirement plan on a regular basis. The money is not considered taxable income upon contribution and it is generally deducted automatically from each paycheck. It is then typically invested in stocks, bonds or mutual funds. The employee can select from several choices of investment options. The employer can also contribute money, or in some cases stock, to the employee s 401(k) plan. The money invested must remain in a 401(k) plan until the employee reaches age 59 , at which time he or she can start withdrawing from the plan without penalties. At this point, however, he or she will pay income taxes. Should an

employee change jobs, the plan can be rolled over into a new 401(k) plan within a certain time frame. Some plans also allow a participant to take out a loan against the plan. The loan must then be repaid before the employee takes any money from the plan in order for the funds to remain tax deferred. Before setting up such a plan you should review the particulars with your accountant who will help you abide by the IRS rules and regulations concerning 401k plans. Retirement plans are generally an attractive benefit for employees. Piece-rate system:- A standard rate of pay is fixed for each unit of output produced by a worker. This is called straight the piecework plan. For example, many computer chips manufactures pay the workers at a flat rate of $3 per component. These systems are easy to understand, simple to calculate and act as effective motivational tool. This system cannot be used for a job which cannot be used be objectively measured as in the case of a receptionist or jobs which are interrelated like that of assembly-line workers. Standard hour plan:- In this system, incentives are provided when an employee completes the work than the time required for its completion. For example, the standard time set for servicing a car is four hours for an auto mechanic. The pay rate for each hour is set as $6 per hour. Even if the mechanic completes the work in three hours, he is paid $24. Commissions: Employees are paid commission either as straight commission or salary-plus-commission : Straight commission- the total pay of the employee is determined by the commission formula. A company s turn over, its policies and strategies determine the commission formula.

Salary-plus-commission- a basic monthly salary along with a commission incentive is provided in this method. The commission portion may vary from 2040% of the total value of the company s turnover.

Employee Health Plans and Other Benefits

A variety of health insurance and related benefits are tax-deductible to corporations for all employees. If the business is not incorporated, business owners can't deduct the cost of these insurance plans (with the exception of health insurance plans) for themselves, but they can deduct these costs for their employees. Health insurance Due to rising medical costs, employees usually value their health insurance coverage over other traditional employee benefits. Consider these issues when establishing a health insurance plan for your small business: Commitment of the insurer to its health insurance business: Choose among the biggest plans in your area. Besides increased likelihood of staying in the business, larger players can negotiate better rates from providers. Comprehensive, catastrophic coverage: So-called major medical coverage pays for the potentially large expenses such as hospitalization, physician, and ancillary charges (such as lab work). Health insurance plans specify the maximum total benefits ("lifetime maximum benefits") that they'll pay over the course of the time that you're insured by their plan. Choice of health care providers: Health maintenance organizations (HMOs) and preferred provider organizations (PPOs) restrict your choice of health care providers to reduce costs. The major difference between HMOs and PPOs is that

PPOs pay the majority of your expenses if you use a provider outside their approved list, whereas an HMO won't cover this at all.

Dependent care plans A dependent care plan enables you and your employees to put away money from your paycheck on a pretax basis, which you can then use to pay for childcare expenses or to care for an ill or aging parent. Doing so saves you federal, state, and even Social Security taxes. Dependent care spending accounts are a "use it or lose it" benefit. If you or your employees aren't able to spend the money for childcare expenses in the current tax year, at the end of the year the IRS forces you to forfeit all the money that you haven't used.

Flexible benefit plans Under a flexible benefit plan (also called cafeteria or Section 125 plans), employees have a choice for a portion of their compensation to receive it as pay or to put those dollars toward purchasing benefits of their choosing from a menu offered by their employer. However, because flexible benefit plans are timeconsuming and fairly costly to establish (around $1,000) and administer (about $1,000 per year), they aren't practical for a small business with fewer than ten employees. Disablement benefit

Employees who are disabled temporarily or permanently due to employment injury or occupational disease are entitled to get the cash benefit. Compensation is provided to employees depending on whether, employees are covered in Employee s state insurance Act or workmen s compensation Act. Maternity benefit The maternity benefit act, 1961 aims at regulating employment of women employees in certain establishment. Under the Act , a women employee gets maternity leave up to 12 weeks from date of delivery(with full wages) with an option to take this leave at 6 weeks prior and 6 weeks after the date of delivery.

Key Compensation Components

Compensation has become a far more complicated issue than just deciding how much to pay your employees. In addition to salary, employers must consider many other components 401(k) plans, stock options, bonuses and vacation

that have become part of compensation packages today. Employees also have greater expectations of what should be included in their compensation packages, and they may demand specific benefits that can be costly for small businesses. Costly or not, building a fair and attractive compensation packages is critical for attracting and retaining employees. When setting up your compensation package, consider the following.

Salary and wages

This is usually the single largest component of a compensation package and, not surprisingly, the most common point of comparison used by employees and potential employees. Salary should be tied to a person's skills and experience. Subsequent increases need to be based on an employee's performance, value and contribution to an organization Check salary surveys and want ads, and scout out competitors to see if they are underpaying or overpaying their staff. Paying too much is an unnecessary drain on your resources, but paying too little will make it difficult to find and keep the best people. Bonuses Employee bonuses, which are usually paid in a single lump at the end of the year, are one way of providing performance incentives. Profit-sharing plans are a more formal way of doing this, but they're not as effective for rewarding individual performance and compensating employees for meeting their goals. Long-term incentive Stock options or stock grants not only provide long-term incentives to employees, but they can also help retain valuable team members through your organization's crucial start-up phase. Health insurance Employer-sponsored health insurance is fairly standard among medium-size companies. And it's a benefit that has great value to employees. An employersponsored plan saves employees money and gives them peace of mind in knowing that they won't be denied coverage, even if they have existing health problems.

If you think you can't afford it, think again. Providing insurance to your employees sends the message that you care about their health and the health of their families. To minimize costs, consider having employees pick up part of the tab. Employees who have coverage through a spouse may want to opt out of a plan, particularly if there's a cost associated with it. Life and/or disability insurance This is also a benefit that usually costs less when it's purchased by an employer rather than an individual. Retirement plans 401(k) plans have become popular because they are relatively easy to administer and are less expensive than traditional pension plans. Many employees like these plans because they maintain some control over the amount of their contribution and how the money is invested. Most small companies try to put some kind of savings or 401(k) plan in place, even if they don't contribute money to them. Time off and flexible schedules This includes holidays, vacations, sick days and personal days. An employer unable to offer competitive salaries may close part of the gap by offering more time off or flexible work hours. Some employers make no distinction between sick, vacation and personal days and allow employees a set number of days off each year to be used at their discretion. This prevents employees from abusing sick days and keeps employees from feeling that they need to lie when a child is ill or a personal emergency arises. Miscellaneous compensation

Other forms of compensation to consider include employee assistance programs, which can provide everything from psychological counseling to legal assistance; discounts on company products; use of company cars; and any other incentives that motivate employees and give your company a competitive advantage.

Pension Plan Basics

Finding and keeping good employees is a difficult prospect for any business. Yet even small firms can compete in the job market if they know how to use the right benefits to beef up their compensation packages. One way to do this is to offer your employees pension plans. Types of Plans Pension plans fall into two major categories: qualified (or tax-qualified) and nonqualified plans. Qualified plans come in two flavors: y Defined benefit plans. In this type of plan, an employer pays a retired employee a fixed amount, based on a formula that includes such factors as an employee's age, earnings and years of service. Most employers fund their plans by placing money in dedicated investment funds under the control of professional money managers. y Defined contribution plans. In this plan, employees contribute to their own pension accounts and assume a share of the investment risk. In some cases, the employer also contributes to the plan, usually by matching the employee's contribution. Some of the most popular retirement plans, including 401(k) plans, fall into this category.

Pension Plan Guarantees

Defined benefit plans provide a safety net: If an employer is no longer able to fund its pension plan, the federal Pension Benefit Guaranty Corporation (PBGC) can step in and take over the plan. The PBGC collects insurance premiums from employers that offer defined benefit plans; in return, the government guarantees that pension recipients will continue to receive their benefits. Defined contribution plans do not enjoy similar guarantees. The return on this type of plan depends largely on how much employees (and employers) contribute to their plans and how they decide to invest their funds. Qualified pension plans meet guidelines established in the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code. As a result, qualified plans offer several key benefits: Growth inside a qualified plan is not taxable until it is distributed; employer contributions are tax-deductible; and employee contributions also are not taxable until they are distributed. Nonqualified plans don't meet ERISA guidelines and the requirements of the Internal Revenue Code, and they don't get the same tax breaks. These plans are usually designed to provide deferred compensation for executives and high-level employees, and are not as well-suited for basic employee retirement plans. Discontinuing Pension Plans occasionally, an employer will terminate a pension plan, either voluntarily or due to factors beyond its control. There are two ways to proceed with a termination: y Standard termination An employer can terminate a fully funded plan if it demonstrates that it has enough money to pay all of its future benefits. The plan then provides benefits by purchasing an annuity usually distributed periodically over an employee's lifetime lump-sum payment. which is or through a

Distress termination under certain conditions (such as bankruptcy), an employer can terminate a plan even if it lacks the money to pay what it owes. In order to complete a distress termination, an employer must show that it is financially unable to support the plan. The PBGC then steps in and ensures that current and future retirees receive their benefits.

Developing Vacation and Sick Leave Policies When developing sick leave and vacation policies for your company, there are some things you must do, because you're required to by law, and some things you should do, because they'll help you retain your top people First, the legalities: The Fair Labor Standards Act (FLSA) doesn't require payment for time not worked, such as vacations, sick days or holidays. These benefits are matters of agreement between an employer and an employee (or the employee's representative). Believe it or not, the only legally required benefit employers are obligated to maintain is workers' compensation insurance; employers aren't required to give paid time off for sick days or vacation days.

Furthermore, the Family and Medical Leave Act (FMLA) entitles eligible employees to take up to 12 weeks of unpaid, job-protected leave in a 12-month period for specified family and medical reasons. The FMLA applies to all public agencies as well as any private-sector employers who employed 50 or more employees in 20 or more workweeks in the current or preceding calendar year. Eligible employees include those who have worked at least 1,250 hours over the previous 12 months. Beyond your legal duties, you should adopt policies that make sense for your employees and your business. Good benefits are a key component of employee satisfaction and retention. Traditionally, companies have set up programs where

employees get a certain number of days for paid sick leave and a certain number of days for paid vacation. This type of plan is easy to institute; you simply decide how many sick days and vacation days to give employees per year, put it in writing know. While this system works well for many companies, you might want to consider altering it to give your employees more respect and autonomy. There are ways to do it that won't cost you anything extra. For example, some companies pool these different types of leave into a unified bank of hours that employees withdraw from; instead of giving employees 10 vacation days and 5 sick days a year, you might decide to give each person 120 hours of paid time off a year to use as they see fit. your employee manual is a good place to start and let everyone

This plan has many benefits. First, it allows employees to schedule days off without having to tell any white lies. It also means that employees don't feel cheated when they're not eligible for certain types of leave. What good is it when you give employees time off to be with sick kids if an employee has no children? The great thing about this plan is that employees get choices for using their time off. They may use it for vacation, personal time or sick days, or they can just accumulate it; it's like a savings account. Some employers even allow employees who accrue more than a predetermined amount of paid time off example 80 hours, for

to redeem the excess hours by exchanging them for cash at the

worker's current pay scale The amount of paid leave you give your employees is up to you, but there are industry standards to keep in mind. On average, new employees usually get about 17 or 18 days off per year, allocated evenly between sick and vacation days. Professional, long-term employees could accrue 30 or more days off a year. To learn more about the norms in your industry, check the Chamber of

Commerce salary and benefits reports for your area. Industry associations might also be able to provide this type of information.

Survivor Benefits
If the employee, annuitant or compensationer was enrolled in the Federal Employees' Group Life Insurance (FEGLI) Program, life Insurance benefits may be payable. If the deceased was a Federal employee, you must contact the employing agency where he or she last worked. If the deceased was receiving compensation from the U.S. Department of Labor for an on-the-job injury or was a Federal retiree, you must contact the OPM Retirement Office by phone toll free 1 (888) 767-6738 or click here: Report the Death of Someone who receives Benefits from OPM The appropriate office will supply the claim form needed to apply for FEGLI benefits and will complete the required paperwork to certify the life insurance OPM pays annuities and provides retirement and benefit services to over 2.3 million Federal retirees and their families

Health Savings Accounts (HSA)

A High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) or a Health Reimbursement Arrangement (HRA) provides traditional medical coverage and a tax free way to help you build savings for future medical expenses. The HDHP/HSA or HRA gives you greater flexibility and discretion over how you use your health care benefits. The HDHP features higher annual deductibles (a minimum of $1,100 for Self and $2,200 for Self and Family coverage) than other traditional health plans. The maximum amount out-of-pocket limits for HDHPs participating in the FEHB Program in 2006 is $5000 for self and $10,000 for Self and Family enrollment.

Depending on the HDHP you choose, you may have the choice of using innetwork and out-of-network providers. Using in-network providers will save you money. With the exception of preventive care, you must meet the annual deductible before the plan pays benefits. Preventive care services are generally paid as first dollar coverage or after a small deductible, or co-payment. A maximum dollar amount (up to $300, for instance) may apply. When you enroll in an HDHP, the health plan determines if you are eligible for a Health Savings Account (HSA) or a Health Reimbursement Arrangement (HRA). If you are Medicare enrolled, you are not eligible for an HSA. Each month, the plan automatically credits a portion of the health plan premium into your HSA or HRA, based on your eligibility as of the first day of the month. You can pay your deductible with funds from your HSA or HRA. If you have an HSA, you can also choose to pay your deductible out-of-pocket, allowing your savings account to grow.

Introduction to motivation

Motivation
Motivating employees is one of the main objectives of employee relationship management, as motivated employee is more productive and creative.

Motivation is considered as one of the most important aspects of actuating because it is motivation that energizes the behaviour of people, while behaviour activates action and action leads to actuation. Motivation is a set of processes concerned with the force that energizes behaviour and directs it towards attaining some goal. Motive: - it s an inner state which stimulates action or moves backed by drive. It can be the cause of an inner drive. The terms like wants, needs, desires, wishes, aims, goals, drives, motives and so on are related to motivation. This may be the reason why the Latin word movere which means to move is considered as the root of the term motivation. The relationship between needs drives and goals can make an integral part of motivation. Motivation implies a goal towards which the movement occurs. It means that motivation causes action. needs are synonymous with wants, motives or impulses which results in action, while a drive is a force that affects a situation by pushing on a specific direction. Goals on the other hand are ultimate objectives for the achievement of which behaviour and action are directed. Motivation is an internal state or condition (sometimes described as a need, desire, or want) that serves to activate or energize behavior and give it direction. y y y y internal state or condition that activates behavior and gives it direction; desire or want that energizes and directs goal-oriented behavior; Influence of needs and desires on the intensity and direction of behavior. The arousal, direction, and persistence of behavior.

Offering a great health plan, a 401k retirement plan, and four weeks of vacation each year is not motivation. Benefits, vacation, and salary are employee retainers and not employee motivators. A company offers these benefits in order to attract

and retain talented workers. Take a look at any company and we will find that the more valuable the employee is to the company, the more valuable their benefits packages will become. The employees who work for our company are naturally motivated. All we need to do is to utilize their natural ability, which we can do without spending money. In fact, money can actually decrease an employee's motivation and performance. The first step in utilizing your employees' natural abilities is to eliminate your organization's negative practices that zap away their natural motivation. The second step our organization can take is to develop true motivators which can spark all our employees into being motivated. By decreasing negative zapping demotivators and by adding true motivators, we will tap into your employees' natural motivation. Our employees' natural motivation relies on the fact that all people have human desires for affiliation, achievement, and for control and power over their work. In addition, they have desires for ownership, competence, recognition, and meaning in their work. The following are examples of true motivators that will help our employees tap into their natural ability to be motivated. Remember; implement these true motivators without spending money. Instead of focusing on money, focus on how you can make some changes within your organization. y If your employees do routine work add some fun and variety to their routine. y y Provide employees with input and choice in how they do their work. Encourage responsibility and leadership opportunities within your company. y y y Promote social interaction and teamwork between employees. Tolerate learning errors by avoiding harsh criticism. Promote job ownership.

y y y y

Develop goals and challenges for all employees. Provide lots of encouragement. Make appreciation part of your repertoire. Develop measurement that shows performance increase.

By eliminating demotivators and adding in no cost motivators you are tapping into your employees' natural human desires to perform at their maximum level of motivation and productivity. The following are the human desires that we are tapping into.

y y y y y y y y

Desire for activity Desire for ownership Desire for power Desire for affiliation Desire for competence Desire for achievement Desire for recognition Desire for meaning

Evolution of motivational theories:In early 50 s Abhram Maslow identified the fact that employees have a basic human need and a right to strive for self-actualization and he gave hierarchy of needs motivational theory and Frederick herzberg s gave motivation and hygiene factors theory. These theories remain valid today for understanding human motivation, management training, and personal development. The concept of motivation has been explained very clearly and they become the base for all motivation programs in an organization.

Abraham Maslow's Hierarchy of Needs motivational model Abraham Maslow developed the Hierarchy of Needs model in 1940-50's USA, and the Hierarchy of Needs theory remains valid today for understanding human motivation, management training, and personal development. Indeed, Maslow's ideas surrounding the Hierarchy of Needs concerning the responsibility of employers to provide a workplace environment that encourages and enables employees to fulfill their own unique potential (self-actualization) are today more relevant than ever. Each of us is motivated by needs. Our most basic needs are inborn, having evolved over tens of thousands of years. Abraham Maslow's Hierarchy of Needs helps to explain how these needs motivate us all. Maslow's Hierarchy of Needs states that we must satisfy each need in turn, starting with the first, which deals with the most obvious needs for survival itself. Only when the lower order needs of physical and emotional well-being are satisfied are we concerned with the higher order needs of influence and personal development. Conversely, if the things that satisfy our lower order needs are swept away, we are no longer concerned about the maintenance of our higher order needs. Maslow's original Hierarchy of Needs model was developed between 1943-1954, and first widely published in Motivation and Personality in 1954. At this time the Hierarchy of Needs model comprised five needs. This original version remains for most people the definitive Hierarchy of Needs Maslow s hierarchy of needs

1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc. 2. Safety needs - protection from elements, security, order, law, limits, stability, etc. 3. Belongingness and Love needs - work group, family, affection, relationships, etc. 4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.

Self-actualization Personal growth and fulfillment

Esteem needs Achievement, status, responsibility, reputation

Belongingness and Love needs Family, affection, relationships, work group, etc

Safety needs Protection, security, order, law, limits, stability, etc

Biological and Physiological needs Basic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.

Maslow s Hierarchy of needs (Original five stage model)

Frederick Herzberg's motivation and hygiene factors Frederick Herzberg's book 'The Motivation to Work', written with research colleagues B Mausner and B Snyder man in 1959, first established his theories about motivation in the workplace. Herzberg's work, originally on 200 Pittsburgh engineers and accountants, has become one of the most replicated studies in the field of workplace psychology. Herzberg was the first to show that satisfaction and dissatisfaction at work nearly always arose from different factors, and were not simply opposing reactions to the same factors, as had always previously been (and still now by the unenlightened) believed. He showed that certain factors truly motivate ('motivators'), whereas others tended to lead to dissatisfaction ('hygiene factors'). According to Herzberg, Man has two sets of needs; one as an animal to avoid pain, and two as a human being to grow psychologically. He illustrated this also through Biblical example: Adam after his expulsion from Eden having the need for food, warmth, shelter, safety, etc., - the 'hygiene' needs; and Abraham, capable and achieving great things through selfdevelopment - the 'motivational' needs. Herzberg's research proved that people will strive to achieve hygiene needs because they are unhappy without them, but once satisfied the effect soon wears off - satisfaction is temporary.

Examples of hygiene needs (or maintenance factors) in the workplace are: y y y y y y y y y policy relationship with supervisor work conditions salary company car status security relationship with subordinates personal life

True motivators were found to be other completely different factors, notably in Herzberg's research factors such as: y y y y y y achievement recognition work itself responsibility advancement personal growth

Herzberg's Motivators and Hygiene

Employee relationship at Solugenix

It is participative type of management at Solugenix. Subordinates are given a chance to confirm the policies, strategies, objectives and goals of the organization which are communicated from the top. And the superior, identifies subordinates productive strength and guide their potentiality into productivity, with this the organization is able to make optimization of resources, as well as employees are also happy about recognition for their talent which helps in developing themselves. The transparency level is well maintained at Solugenix. Any subordinate can directly interact with his superiors with out any hurdle. Superiors if possible directly interact with subordinates and solve the issues, if not they use emails or telephones as communication tools. For betterment of employee s relationship, Solugenix offers various benefit policies and compensation packages, which are very motivating and attractive. Employees are provided with safe ambience and hygiene environment to work. The relationship with subordinates is well managed at Solugenix, which we can make out from the past success of the company in past 26 years. The numbers of clients have increased at steady rate. A very effective problem solving mechanism is followed at Solugenix, which always prevents line staff conflict, conflict between departments etc., if in case any issue arises the HR Manager personally takes care of it. As an individual, employees have their own weaknesses, strength, passion, pride, emotions etc.,. At Solugenix the employees are provided with lot of opportunities and freedom to complete their task in their own style. As they know that employees are not machines. A well-planned and balanced working hour has been scheduled to take care of the employees and strong team of logistics experts supports this. Approachability is very transparent and clear. If still employees are facing problems then they are solved by mutual understanding and face-to-face talks

between the problem employees in the presence of HR Manager who later concludes the decision with an optimum solution

The organization is trying their best to provide and promote healthy and strong employee relationship by all means like

y y y y y y

Good ambience Hygiene condition Positive work culture Better benefit and compensation programs Counseling employees Training and development To motivate and improve the morale of the employees.

BENEFITS AT SOLUGENIX. Eligible employees at SOLUGENIX (USA) are provided a wide range of benefits, which are Medical Insurance COBRA-consolidated omnibus budget reconciliation act The law amends the employee retirement income security act (ERISA), the internal revenue code and the public health services act to provide continuation of group health coverage that other wise would be terminated. Cobra contains provisions giving certain former employees, retirees, spouses and dependent children the right to temporary continuation of health coverage at group rates. this coverage, however is only available in specific instances. Group health coverage for cobra participants is usually more expensive than health

coverage for active employees since usually the employer formerly paid a part of the premium. It is ordinarily less expensive, though, than individual health coverage. As an employee of the company, the employee, his/her spouse children are insured by the company under a Group Insurance Policy as per the rules stipulated by the Insurance company, to cover the cost of Hospitalization arising out of sickness to insured individuals. The Medical benefits provided under the terms of the plan and available to COBRA beneficiaries include: 1. Impatient and Outpatient Hospital care 2. Physician care 3. Surgery and other major medical benefits 4. Prescription drugs 5. Any other benefits, such as Dental and Vision care.

Life insurance by reliance standard 100% paid by the employer y y y Basic life insurance AD & D STD for @50,000.

Accidental Death & Dismemberment Additional $50,000. weekly benefit 60% of weekly salary or 12

short term disability

maximum of $1500 which ever is lesser- maximum of 13 weeks

weeks for maternity and 1 week of vacation- after 7 days the benefit starts. y LTD-Long term disability- 90 days of disability- monthly benefit -60% of annual salary or $10000 maximum which ever is lesser. FMLA- family and medical leave act y y y y At least one year Up to maximum of 12 weeks Employee doesn t get paid Leave is approved and the employer cannot terminate the employee.

FSA- Flexible spending account- conexis Pretax benefit- Amount gets detected before an employee s tax is worked out. y y Health Care Allowances Day Care Allowances HCA -DCA

Annual remit is $5,000 for DCA and 4500 for HCA( use or loose policy) Calendar year benefit (Jan to dec is the calendar year) 401(k) - fidelity (no employer contribution) y y Pre tax benefit Retirement benefit

1 to 60 % of annual salary up to $14000 for the year 2005 and 15000 for year 2006. Done 1st of every month. 59 years is the retirement.

Vacation policy: Vacation year starts from January to December. Paid time off: All fulltime employees are entitled to paid time off from their date of hire. Paid time off-hourly employees The employee who is full time and paid hourly earns:-

0-5 years of services-198 hours/year 5+ years of services-243 hours/year 10+ years of services-288 hours/year To receive any leave accrual, you must be an active employee on the last calendar day of the pay period. If you have unused leave at the time of termination, you will be paid for it. You can take paid leave for the purpose of vacation, holiday, personal leave, medical leave, childcare leave, family leave, bereavement or for other similar reasons. Absence from work must be approved by the supervisor and scheduled in advance except as provided in the family and medical leave time. If you have not used all the leave time you earned by December 15, you can: y y Elect to be paid for up to 80 hours of unused leave time. Carry up to 90 hours of unused leave forward into the following year subject to maximum accrual limits. y y Choose a combination of payment/carry forward. Any exception to carry forward more than 90 hours needs approval from the regional director. y The maximum accrued leave an hourly employee may have at any time is 240 hours. Leave will stop accruing once the 240 hours maximum limit is reached. y For leave other than that taken for reasons cited above, please refer to the subsection. Family and medical leave .

Paid time off salaried employees: If your are a salaried employee, you will earn: 0-5 years of services-22days/year 5+ years of services-27 days/year 10+ years of services-32days/year To receive any leave accrual, you must be an active employee on the last calendar day of the pay period. You can take paid leave for the purpose of vacation, holiday, personal leave, medical leave, childcare leave, family leave, bereavement or for other similar reasons. Absence from work must be approved by the supervisor and scheduled in advance except as provided in the family and medical leave time.

The maximum accrued leave a salaried employee may have at any time is 30 days. Leave will stop accruing once the 30 days. Maximum limit is reached. If you have not used all the leave time you earned by December 15, you can: y y You can elect to be paid for maximum of 10 days. Carry up to 30 days of unused leave forward into the following year, subject to maximum accrual limits. y y Choose a combination of payment/carry forward. Any exception to carry forward more than 30 days needs approval from the regional director. y If you have unused leave at the time of termination, you will be paid for it

Consumption: Salaried employees must take leave time in full or half day increments. Leave time entered on a time sheet for less than 4 hours in a day will be counted as half day. Leave time entered on a time sheet for more than 4 hours in a day will be counted as 1 day. Vacation will accrue at the end of each pay period and the current vacation balance will be reflected in the employee s pay stub. Vacation time will not accrue for the period an employee is on unpaid leave. Leave/holiday reporting: Hourly employees- on any day you record leave time; the maximum total number of reported hours (hours worked plus leave hours) is twelve. Salaried employees- to be paid for a day you do not work, report eight hours of leave. Compensation adjustment: A compensation adjustment is made when you report time (work or leave) for less than five days in a week. The adjustment is your day rate multiplied by the number of days less five for which you did not report any time (work or leave).

BENEFITS AT SOLUGENIX India

Eligible employees at SOLUGENIX (India) are provided a wide range of benefits, which are Medical Insurance As an employee of the company, the employee, his/her spouse children are insured by the company under a Group Insurance Policy as per the rules stipulated by the Insurance company, to cover the cost of Hospitalization arising out of sickness to insured individuals. The Medical benefits provided under the terms of the plan and available to COBRA beneficiaries include:  Impatient and Outpatient Hospital care  Physician care  Surgery and other major medical benefits  Prescription drugs  Any other benefits, such as Dental and Vision care.

Leaves of Absence

LEAVE POLICY: Solugenix recognizes that employees have to take a break from the regular office routine to attend personal work, for reasons of sickness or for annual vacation.

LEAVE YEAR:

The leave year in Solugenix is the Calendar year i.e. January to December.

LEAVE TYPES:

Employees at Solugenix are eligible for the following categories of leave:  Privilege Leave  Casual Leave  Sick Leave  Maternity Leave  Paternity Leave

LEAVE APPROVAL

Employees at Solugenix are eligible for all types of leaves from the day they are confirmed. Leave will accrue to them at the end of every pay period on a Prorata basis Employees must apply for leave using a prescribed leave request form, which are available with Administration Department.

Employees must apply for leave to the manager or the Administration Department. Manager will approve the employees leave after Considering the workload, schedules, essentiality of leave and any other relevant factors. Leave can be taken only after the manager or the administration department has approved the leave.

LEAVE WITHOUT PAY:

Leave without pay is discouraged except in special circumstances. The salary (excluding any reimbursements) of an employee going on Leave without Pay (LWOP), for that month will be reduced proportionately for the days of Leave without Pay. In case the employee is absent from work without prior approval or when the application for leave has not been approved, such absence will also be treated as LWOP. Depending on the circumstances, such absence may attract Disciplinary action. Laptops and Mobile phones Solugenix will provide laptops and mobile phones to employees as needed, based on project need and position. Professional Development In the spirit of encouraging learning and personal growth, Solugenix will pay for relevant Degree courses required to do the job more efficiently, offered by reputed colleges, both evening courses and full time courses.

Provident Fund This is administered according to the Employees Provident Act. The company will make base contributions to a provident fund as per Employee s Provident funds and Miscellaneous Provisions Act, 1952. The Employer s and Employee s contribution toward Provident Fund will be paid as cash component until such time the company registers itself under the Provident Fund Act. On registration, the contribution towards Provident Fund will be deducted accordingly.

Individualized Allowances Various allowances such as 1. 2. 3. 4. House rent allowance Vehicle allowance Child Education Allowance Medical allowance Are offered to the employees of Solugenix based on position. All employees are eligible for Medical reimbursements for ailments as per terms of Income Tax Act. Medical allowances are paid along with monthly salary. However, bills pertaining to other allowances must be submitted every quarter and to the extend the Allowances are in excess of the bills submitted; they will be added to taxable income and applicable tax deducted.

Referral Bonus Employees working in Solugenix who refer and persuade known Friends and Family to join the company, resulting in the referred person joining the company and staying for 6 months will be eligible to receive a referral bonus of Rs.2500 for referring up to Manager and Rs.7500 for senior managers and above. The referral bonus will be paid only after the referred employee completes a minimum period of 6 months with the company. Brokerage costs for the relocation Employees only Employees seeking rental accommodations at the time of joining will be eligible for brokerage fees up to 1 month s rent. Travel Solugenix will reimburse all pre-approved and pre-defined expenses for travel related to company s work. It will defray visa costs as necessary, stay costs, food and living and all other costs arising out of the need to travel on company business. It will also provide travel Insurance to cover treatment of illness and accidents abroad. Relocation Solugenix will reimburse for reasonable relocation expense. Reimbursement will be made at the time of joining after the employee produces official receipts for the expense. Such reimbursement is conditional to employees being employed at Solugenix one year after joining, therefore the full and final settlement at the time of the employee s end of the employment with Solugenix will include a reckoning of re-location costs.

Transportation Services Solugenix will arrange for pickup of employees along prearranged routes and pickup points based on employees distribution across the city or will pay conveyance Allowance as per the norms of the company. Gratuity Employees at Solugenix are eligible for a gratuity benefit. The benefit will pay 15 days salary for every completed year of service after completing 5 years of service. Solugenix is committed to provide a work environment that is in line with its core values. To accomplish this, it is imperative that every employee understand and comply with the professional code of conduct. Some of them are

Focus on the work

Respect towards colleagues

 Responsibility towards company property

Research methodology

Introduction

Research methodology is a way to systematically solve the research problem; it may be understood as a science of studying how research is done scientifically. Thus where we talk of research methodology we not only take of research method, but also consider the logic behind the methods we use in the context of our research study and explain why we are using the particular method.

Research design After having defined the objective the next is to formulate steps, which will specify the ways of achieving the primary and secondary objectives. Generally the data collection method and sampling plan are the main elements that constitute the research design.

Research design provides smooth operations yielding maximal information with minimum expenditure of effort time and money.

Research design has a plan in advance of data collection analysis for our research report.

A research design is the logical and systematic planning and directing piece of research.

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to confirm relevance to the research purpose with economy procedure.

The study is designed as descriptive one based on survey method.The sample was selected based on convenience sampling method. Both primary data and secondary data were collected. And the collected data were analyzed by using statistical tools like percentage method and pie charts.

Pre testing of questionnaire The researcher to remove questions that are vague and ambiguous in the nature conducted the pre testing. The samples of 10 respondents were selected and the questionnaire was pre-tested and the researcher did necessary modification.

Data collection There are two types of data

Primary data: - the primary data is that information which is collected for the first time, and thus happen to be original in character. Primary data can be collected through method of survey, observations and questionnaire.

Here the data has been collected through questionnaire.

Secondary data Secondary data are those which have already been collected by some other agency and which have already been processing. Here the secondary data was collected from websites, journals and books.

Sample

A sample is a segment of the population selected to represent the population as a whole.

Sample size

The sample size is 20 in respect of staff, supervisors and managers from each department namely software developers, marketing, finance and Human resource.

Limitation

 The sample size is 20 only  The survey was conducted at Solugenix India only.

Analysis & Interpretation

Are you optimistic about your future success with the company?

Employee s response Particulars Strongly agree No of employees 13 4 1 2 Agree Neutral Disagree Strongly disagree 0 20 Total

Disagree 10% Neutral 5% Agree 20%

Strongly Agree Strongly disagree 0% Agree Neutral Strongly Agree 65% Disagree Strongly disagree

Inference: From the above graph we can infer that 65% of the employees currently working with the Solugenix strongly agree about their future with the company and 20% agree the same and 5% are not in a position to comment about it and 10% disagree about their future with there company. 10% is negligible when compared with 85% of people which exhibit their successful future with the company.

Do you feel that the company care about its people?

Employee s response Particulars Strongly agree No of employees 13 4 3 0 Agree Neutral Disagree Strongly disagree 0 20 Total

Disagree 0% Neutral 15% Agree 20% Strongly Agree 65% Strongly disagree 0%

Strongly Agree Agree Neutral Disagree Strongly disagree

Inference:

From the above graph, we can say that 65% of the employees strongly agree that the company cares about them and 20% agree with the same where as 15% are not in a position to comment on it. This shows the strong relationship between the employees and management.

How much are the employees involved in company s development?

Employee s response Particulars Completely involved No of employees 13 Partially involved 4 Not at all involved 3 20 Total

Employees Involvement
Not at all involved 15% Partially involved 20%

Completely involved Partially involved Completel y involved 65% Not at all involved

Inference: The above graph depicts that 65% of the employees feel that they are completely involved in the company s development, whereas 20% of them feel that they are partially involved and 15% are not involved. I.e. a good indication for the organization.

How satisfied are you with the following?

Employee s response Particulars Strongly agree compensation Benefits Work culture work responsibility Level transparency Freedom experiment to 55%(11) 25%(5) 15%(3) 5%(1) 0 75%(15) 80%(16) 80%(16) 60%(12) 70%(14) of 90%(18) 20%(4) 10%(2) 20%(4) 40%(8) 25%(5) 10%(2) 0 0 0 0 5(1) 0 5%(1) 10%(2) 0 0 0 0 Agree Neutral Disagree Strongly disagree 0 0 0 0 0 0

Inference

The above graph displays that almost 75% of the employees strongly agreeing with their compensation, benefits, work culture, work, responsibility, level of transparency which indicates the presence of better benefit and compensation package where as only 55% of them strongly agree with freedom to experiment and 25% agree with it.

The professionalism of the people with you works.

Employee s response Particulars Strongly agree Employees response 15 2 0 3 Agree Neutral Disagree Strongly disagree 0 20 Total

professionalism

Disagree 15% Neutral 0% Agree 10%

Strongly Agree Strongly disagree 0% Agree Neutral Disagree Strongly disagree

Strongly Agree 75%

Inference: Through above graphical representation, we can infer that 75% of the employees strongly agree about the presence of professionalism in the people around them whereas 10% of them just agree and 15% of the employees feel the absence of professionalism with whom they work with.

Have you ever faced any problem while working?

Employee s response Particulars Employees response Yes 8 No 12 Total 20

Yes 40% No 60%

Yes No

Inference:

The above diagrammatic data represents that 60% of the employees has not faced any problem while working, whereas 40% of the people have faced some minor problems while working. next graph shows that 87% of the employees who have faced problem are highly satisfied with the problem solving mechanism.

Are you satisfied the way it was handled?

Employees response Particulars Employees response Yes 7 No 1 No response 0 Total 8

problem solved

13%

yes no

87%

Inference: The above graph depicts that 87% of the employees are satisfied with the way the problem was tackled and 13% of them were not satisfied. This proves that the working environments is problem free and have a very effective mechanism to solve the problem

Have you received appropriate recognition for your contribution? Employee s response Particulars Strongly agree Employees response 17 3 0 0 Agree Neutral Disagree Strongly disagree 0 20 Total

Recognition
Neutral 0% Disagree 0% Strongly disagree 0%

Agree 15%

Strongly Agree Agree Neutral

Strongly Agree 85%

Disagree Strongly disagree

Inference:

The above analysis reveals that 85% of the surveyed employees strongly agree that they have received appropriate recognition for their contribution in the organization whereas 15% of them just agree about it and none of them opposes the recognition policies, this show that Solugenix have good rewards and recognition policy.

Does the organization provide long-term job security?

Employee s response Particulars Employees response Yes 12 No 3 No response 5 Total 20

long term job security

no response 25% yes 60%

yes no no response

no 15%

Inference:

From the above chart we can comment that 60% of the employees have faith that they will be provided long-term security, 15% doesn t support it and 25% of them did not responded about it. The company should try to win the faith of not satisfied (15%) employees.

Are you satisfied with the relationship with the superiors? Employee s response Particulars Employees response Yes 15 No 5 Total 20

Relationship with superiors

No 25% Yes No Yes 75%

Inference:

The above chart indicates that 75% of the total employees are satisfied with their relationship with the superior that s a good sign for Solugenix because this clearly shows how effectively they are maintaining relationship with employees whereas 25% of them reject it. The company should try to work out this difference to make it best in the industry.

What is the transparency level between superiors and subordinates?

Employee s response particulars Employees response Good 14 Moderate 5 Bad 1 Total 20

Transparency level
Bad 5% Moderate 25% Good Moderate Good 70% Bad

Inference: From the above-analyzed data we can say that, there is a good transparency level, as 70% of the total have opted good transparency between superiors and subordinates and there exists 25% of moderate and 5% of the bad transparency level between them.

Are you satisfied by the group insurance?

Employee s response Particulars Employees response Yes 14 No 5 No response 1 Total 20

Group insurance
No response 5% No 25% Yes 70% Yes No No response

Inference: The above diagram indicates that, 70% of the employees are satisfied with the group insurance, 25% of the oppose it and 5% of them have not responded to it. On an average 70% are very satisfied with the group insurance but 25% is not satisfied which is not an negligible percentage the company should interact with them and try to find out the reason for it.

Are medical allowances provided substantial for your requirements?

Employee s response Particulars Employees response Yes 14 No 6 No response 0 Total 20

Medical allowances

No 30% Yes No Yes 70%

Inference: From the above information it has been found that 70% of the employees says that the medical allowances provided to them are substantial whereas 30% of them feel its not adequate to meet their medical requirements, this might be due to their large family size or frequent health problems.

Are you satisfied the way incentives are awarded?

Employee s response Particulars Employees response Yes 14 No 5 No response 1 Total 20

Incentives plan
No response 5% No 25% Yes 70% Yes No No response

Inference: The above data infers that 70% of the employees are content with the way incentives are provided to them that s a healthy sign for any organization and 25% of them are not content this might be due to lot of expectation whereas 5% of them did not respond to the question.

If provided with Better opportunities will you .

Employee s response Particulars Give thought. second Straight leave the job away Total

Employees response

16

20

straight away leave the job 20%

Give second thought Give second thought 80% straight away leave the job

Inference The above graph reveals the type of work culture and Employee satisfaction Solugenix is offering to its employees 80% of the employees are going to give a second thought before leaving the job where as 20% of them will straight away leave the job. 80% of the totals surveyed are content with this job that s a good sign for Solugenix as compared to industry, which is facing high turn over.

Are you satisfied with the vacation policy? Employee s response Particulars Strongly agree Employees response 5 12 1 2 Agree Neutral Disagree Strongly disagree 0 20 Total

Vacation policy
Strongly disagree 0% Strongly Agree 25% Strongly Agree Agree Neutral Agree 60% Disagree Strongly disagree

Disagree 10% Neutral 5%

Inference: The above graphical representation conveys that 60% of the employees are satisfied with their vacation policy, 10% of them disagree, 5% are neutral and 25% of them strongly disagree regarding the vacation policy provided to them.

25% of the employees are not satisfied with the vacation policy followed at Solugenix ltd the reason for this might be the company follows USA standards.

Findings and suggestions

Findings Findings of this research are based on the survey conducted using the questionnaire and other data related employee relationship available on net and journals supplied by the company.  Employees at Solugenix India are very optimistic about their future with the company. This is a good sign for limited turnover expectations by the company.  Employees feel that organization cares for their employee which reflects the bond between the company and employee.  In Organization employee feels that they are allowed to participate in decision making this reflects professionalism of the company.  Employees are given a chance to deal with problem situation; they are allowed to approach their seniors for any problem situation. Most of the employees (90%) are satisfied with problem solving mechanism available in the company.  On an average almost all the employees are satisfied the way rewards and recognition is awarded to them. That shows the company is offering awesome benefit package to the employees.  Only 60% of the employees are of the view that they are having long term job security it is a good percentage but still 25% are in different. So company should try to win the faith of them.  A good and effective relationship among the employees and superiors is the sing of trust and understanding which Solugenix is witnessing as 75% of them are satisfied with the relationship with superiors.  On an average 70% of the employees are satisfied with incentives and medical allowances at Solugenix

 80% of the employees say that they will give a second thought before leaving this job which shows that they are content with it and this is a healthy sign in today s market where companies are facing high turnover.  Above all the at Solugenix the transparency level is well maintained as only 5% feel that its bad that indicates the culture and climates of the firm.

Suggestions
After comparing the benefits programs offered at Solugenix with industry standards the following suggestions were made by the researcher on the knowledge he holds on the subject. The following suggestion are given only to improve the benefit program which does not mean that the existing program is not good or employees are not satisfied with it.

Beefing Up companys Benefits Package

Today's workers expect their employers to offer more than basic health insurance. They want comprehensive benefits packages that help them lead healthy and productive lives. Benefits can range from pet insurance to onsite child care, so how do you decide which ones to provide to your employees? The common suggestions made are as follows y y Make sure the benefit is important to a large number of your employees. Choose benefits that work well with your corporate culture.

Decide if your benefits package will offer a good return on your investment.

y y

Let your benefits package evolve with your company and employees. Perform a cost analysis of each benefit to determine how it will affect your bottom line.

New Benefits Ideas Call company s health-care provider and ask how you can supplement existing benefits. Company may be able to offer its employees new benefits and perks without spending a lot of cash. Some traditional providers offer such benefits as prenatal care, smoking cessation and weight loss programs, gym subsidies, onsite flu shots, CPR training and retiree health-care benefits. Then try adding a few new perks that your employees will appreciate and enjoy. Offer assistance to new recruits In addition to offering a relocation package, consider providing services that will help spouses of its new employees find jobs. Family transition packages help family members find jobs, schools, activities, and churches or synagogues. Give perks to business travelers Encourage employees to use their company-earned frequent-flier miles to bring their spouses and children on business trips. And offer to pay for their longdistance calls and dry cleaning while they're on the road. Incorporate "lifestyle" benefits Add benefits that help employees simplify their personal lives. Consider offering dry cleaning services, legal assistance, onsite cash machines and health insurance for pets.

Offer domestic-partner benefits Many businesses include packages that accommodate an employee's significant other, regardless of their marital status. Create a time bank Build a sense of loyalty among coworkers with a time bank. Encourage its employees to donate sick, vacation or personal days to others in the company. Match employees' charitable contributions. Donate money to its employees' favorite charities, and offer employees paid time off when they volunteer for a charity. Utilize the Web There are a number of Web sites that help you supplement your benefits package. Sites like BenefitsLink.com can help employers create perk programs for their employees. Explore options for child care Company child-care centers help cut down on absenteeism. If company is too small to provide onsite care, consider offering referral services and subsidies.

Questionnaire
This survey is regarding a study on Employee Relationship and Benefit Administration at Solugenix. Kindly spend your valuable time in going through and filling the questioner.

1. Are you optimistic about your future success with the company? A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree 2. Do you feel that the company care about its people? A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree 3. How much are the employees involved in company s development? A) Completely involved B) partially involved C) not at all involved 4. How satisfied are you with the following? Strongly agree compensation Benefits Work culture work responsibility Level of transparency Freedom to experiment agree neutral disagree Strongly disagree

5. The professionalism of the people with you works. A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree 6. Have you ever faced any problem while working and are you satisfied the way it was handled? A) Yes B) No A) Yes B) No

7. Have you received appropriate recognition for your contribution? A) Strongly agree B) Agree c) Neutral D) Disagree E) Strongly disagree

8. What factors would ensure your stay in the organization?

9. List any three factors that motivate you to perform well. A) B) C) 10. Does the organization provide long-term job security? A) Yes B) No 11. Are you satisfied with the relationship with the superiors? A) Yes B) No 12. What is the transparency level subordinates? A) Good B) moderate C) Bad between superiors and

13. Are you satisfied by the group insurance? A) Yes B) No 14. Are medical requirements? A) Yes B) No allowances provided substantial for your

15. Are you satisfied the way incentives are awarded? A) Yes B) No 16. If provided with Better opportunities will you . A) Give second thought. B) Straight away leave the job.

17. Are you satisfied with the vacation policy? A) Strongly agree B) Agree C) Neutral D) Disagree E) Strongly disagree

18. Would you like to make any suggestion to improve the employee participation and relationship at Solugenix?

Bibliography

Referred Books Ashwatapa Rose Mary joshi and shashi k gupta Mamoria :-Human Resource Management :- Human Resource Management :-Personal Relations

Journals

ICFAI journals Solugenix journals

Websites
www.employer-employee.com www.businessballs.com www.allbusiness.com www.aednet.org www.opm.gov