Benefits of employee training program : implications for the insurance industry

The decision to commit to the cost of training employees in insurance
organisations of all sizes is similar in nature to the decision by their customers to buy insurance. Both believe it is necessary but each has some reservations about its benefits.

Portable sick leave in the Victorian building industry : managing cumulative employee benefits in the absence of employment security

The trend away from full-time permanent employment raises questions about the relevance of traditional approaches to managing and compensating employees. Employment in the Australian building industry is characterised by short-term, project-based employment. Employers and unions in the industry have adopted alternative compensation models to accommodate the short-term nature of employment, most notably through portable benefit schemes. In 1997, the Victorian building industry extended the range of portable benefits to include sick leave. Empirical evidence suggests a relationship between employee absence behaviour and accrual entitlement models. Research reported here supports this link, and suggests that both employers and employees can benefit from an alternative, portable, approach to accrued entitlements. Employers can benefit because employees may be less likely to take an instrumental approach to their entitlements. Employees benefit because they are able to accrue entitlements for the period they remain in the building industry, irrespective of the extent to which they change jobs.

The impact of the adoption of IAS 19 employee benefits on annual financial statements: an examination of Australian and United Kingdom companies

International Financial Reporting Standards (IFRS) have been adopted by a number of countries as a means of harmonising financial statements around the world. Proponents of IFRS suggest many benefits upon their adoption. This paper examines the effect of the adoption of IFRS on aspects of the company's financial statements, in particular, the adoption of the IFRS relating to post employment benefits and its effects on debt/equity ratios.

This study compared the reporting practices of a number of Australian and UK companies and found that for most companies there was a substantial increase in liabilities, a decrease in shareholders' equity and a corresponding increase in debt/equity ratios after the IFRS were adopted.

An examination of the effect on debt/equity ratios with the adoption of IAS 19 : employee benefits

A number of countries have adopted the International Financial Reporting Standards (IFRS) as a means of harmonising financial statements. .This paper examines the effect of the adoption of IFRS, relating to post employment benefits and its effects on debt/equity ratios. The adoption of the IFRS resulted in most companies reporting a substantial increase in liabilities, a
decrease in shareholders’ equity and a corresponding increase
in debt/equity ratios.

The tax treatment of employee stock options : generous to a fault

In the 2000 budgets, both the federal and Ontario governments introduced changes to the tax treatment of employee stock options for the explicit purpose of making their tax treatment in Canada similar to or more favourable than that in the United States. The federal budget added a deferral, similar to that currently applicable to options granted by Canadian-controlled private corporations, for up to $100,000 per year of public company stock options. The Ontario budget introduced an exemption from tax for employees involved in research and development on the first $100,000 per year of employee benefits arising on the exercise of qualified stock options or on eligible capital gains arising from the sale of shares acquired by the exercise of eligible stock options. These proposals reflect the apparent acceptance by the two governments that there is a “brain drain” from Canada to the United States of knowledge workers in the “new” economy and that reductions in Canadian taxes should stem this drain. In the author’s view, the tax treatment of employee stock options, even without these changes, is overly generous. Both the federal and provincial proposals ignore the fact that most employee stock options are taxed more favourably in Canada than in the United States in any event. In particular, most employee stock option benefits in Canada are taxed at capital gains tax rates, whereas in the United States most are taxed at full rates. While the US Internal Revenue Code does provide capital gains tax treatment for certain employee stock option benefits, a number of preconditions must be met. Most important, the shares acquired pursuant to the options must be held for a minimum of one year after the option is exercised. In addition, there are monetary limits on the amount of options that qualify for capital gains treatment. In Canada, there are generally no holding period requirements or monetary limits that apply in order for the option holder to benefit from capital gains tax rates. Empirical evidence indicates that the vast majority of employees in the United States exercise their options and immediately sell the shares acquired. These “cashless exercises” do not benefit from capital gains treatment in the United States, whereas similar cashless exercises in Canada generally do. This empirical evidence suggests not only that the 2000 budget proposals are unwarranted, but also that the existing treatment of employee stock options in Canada is already more generous than that in the United States. This article begins with a theoretical “benchmark” for the taxation of employee stock options. The author suggests that employee stock options should be treated in the same manner as other income from employment. In theory, the value of the benefit should be included in income when the option is granted or vests. However, owing to the practical difficulty of valuing employee stock options, the theoretical benchmark proposed is that the value of the benefit (the difference between the fair market value of the shares acquired and the strike price under the option) be taxed when the shares are acquired, and the employer be entitled to a corresponding deduction. The employee stock option rules in Canada and the United States are then compared and contrasted with each other and the benchmark treatment. The article then examines the arguments that have been made for favourable treatment of employee stock options. Included in this critique is a review of the recent empirical work on the Canadian brain drain. Empirical studies suggest that the brain drain—if it exists at all—is small and that, despite what many newspapers and right-wing think-tanks would have us believe, lower taxes in the United States are not the cause. One study, concluding that taxes do have an effect on migration, suggests that even if Canada adopted a tax system identical to that in the United States, the brain drain would be reduced by a mere 10 percent. Indeed, even if Canada eliminated income tax altogether, it would not stop the brain drain. If governments here want to spend money in order to stem the brain drain, they should focus on other areas. For example, Canada produces fewer university graduates in the fields of mathematics, sciences, and engineering than any other G7 country except Italy. The short supply of university graduates in these fields, the apparent loss of top-calibre academics to US
universities, and the consequent lower levels of university research in these areas (an important spawning ground for new ideas in the “new” knowledge-based economy) suggest that Canada may be better served by devoting more resources to its university institutions, particularly in post-graduate programs, rather than continuing the current trend of budget cuts that universities have endured and may further endure if taxes are reduced.
As far as employee stock options are concerned, if Canada does want to look to the United States for guidance on tax reform (which it seems to do with increasing frequency of late), it should adopt the US rules applicable to nonstatutory options, which are close to the proposed benchmark treatment. In the absence of preferential tax treatment, employee stock options would still be included in compensation packages provided that there were sound business reasons for their use. No persuasive evidence has been put forward that the use of stock options, in the absence of tax incentives, is suboptimal. Indeed, the US experience suggests quite the opposite.

The organisational benefits of teams

This study presents an analysis of the benefits of two team structures - quality circles and self-managing work groups - for Australian work organizations utilizing the Australian Workplace Industrial Relations Survey for 1995. The analysis indicates that firms with team structures have higher labor productivity, a flatter management structure and reduced employee turnover. The presence of team structures in Australian firms indicates a decrease in industrial harmony. The findings were inconclusive regarding absenteeism and profitability.

Organizational change in the public sector: augmenting the demand control model to predict employee outcomes under New Public Management

This study identifies the environmental and personal characteristics that predict employee outcomes within an Australian public sector organization that had, under New Public Management (NPM), implemented a variety of practices traditionally found in the private sector. These are more results-oriented, and their adoption can be accompanied by increased strain for employees. The current investigation was guided by two complementary theories, the Demand Control Support (DCS) model and Conservation of Resources (COR) theory, and sought to examine the benefits of building on the DCS to include both situation-specific stressors and internal coping resources. Survey responses from 1,155 employees were analysed. The hierarchical regression analyses indicated that both external and employee-centred variables made significant contributions to variations in psychological health, job satisfaction, and organizational commitment. The external resources, work based support and, to a lesser extent, job control, predicted relatively large proportions of the variance in the target variables. The situation-specific stressors, particularly those involving harmful management practices (e.g., insufficient time to do job as well as you would like, lack of recognition for good work), made significant contributions to the outcome measures and generally supported the process of augmenting the generic components of the DCS with more situation-specific variables. In terms of internal resources, problem and emotion-based coping improved the capacity of the model to predict psychological health. The results suggest that the impact of NPM can be ameliorated by incorporating the dimensions of the augmented DCS and coping resources into the change programme.

Business to employee (B2E) e-business model : service to employees or organisational management?

This paper is a discussion of the B2E e-business model from the perspectives of employee services and organisational management. It includes literature to support B2E as employee services and organisational management with benefits to both. Intranets and portals are technologies supporting the implementation of the B2E e-business model which are also discussed. A case study is included to understand the application of the B2E model in a large organisation. Case study analysis indicates that the B2E e-business model is a service to the employees, however, these services are to support organisational efficiencies.

Valuing participation : artists and the Adelaide fringe festival

Based on interviews and focus group discussions with participating artists in the 2009 Adelaide Fringe Festival, this paper is an interrogation of one aspect of the cultural value of the festival in terms of the benefits it delivers to one of its key constituent communities. The evaluation of special events has tended to focus on measuring the economic benefits that festivals can deliver to local economies. However, scant attention has been paid to the indirect impacts of arts events on communities and in particular to the impacts felt by the artists who participate. The Fringe festival plays a critical role as a facilitator of new work dedicated to creating opportunities for artists to practice their craft. Our research findings suggest that the stated goals of the Fringe – to provide a multi-artform and inclusive platform for the presentation of art works through the provision of resources and other services to artists – are largely being met, and that participating artists report a high degree of satisfaction with the work of the organisation. In terms of impact, the research finds that artists see themselves as the beneficiaries of a number of positive short-term outcomes resulting from their participation in the festival. We call for further longitudinal study to address the potential long-term career development impacts of festival participation for artists.

The impact of employee perceptions of organizational corporate social responsibility practices on job performance and organizational citizenship behavior: evidence from the Chinese private sector

This paper examines the impact of employee perceptions of organizational corporate social responsibility (CSR) practices on their job performance and organizational citizenship behavior (OCB). Hierarchical regression analysis on two-wave data from 184 supervisor/subordinate dyads from three organizations located in Zhejiang Province, South-East China, revealed that employee perceptions of CSR toward social and non-social stakeholders strongly influenced their OCB. However, employee perceptions of CSR toward employees, customers and government influenced neither their job performance nor OCB.

Assessing the economic benefits of starling detection and control to Western Australia

The common starling (Sturnus vulgaris) has a proven invasion history in many countries, and at a continental scale in North America and Australasia. In Australia, starlings are firmly established throughout the eastern states and Tasmania. Incursions of starlings into Western Australia (WA) represent a significant threat to this State’s agricultural, public amenity and biodiversity assets. We present models of starling population dynamics that incorporate environmental and control effort variability. We incorporate knowledge of starling ecology with economic data to assess the potential economic cost of starlings establishing in WA, evaluating the cost–benefits for each management scenario. We calculated starling population size will approach carrying capacity in WA within as little as 30 years if left unchecked. A population of this size could cost the WA economy up to $43.7 million annually in 2011/2012 dollars. Over a 50 year horizon, the conservative benefit–cost ratio for ongoing detection and control at the current level of expenditure is 6.03:1. However, even under current levels of control, starling numbers are projected to increase to almost 11 million by 2061. Further improvements in the efficiency of starling detection and control and/or an increased level of expenditure on detection and control are required.

The impact of employee perceptions of training on organizational commitment and turnover intentions: a study of multinationals in the Chinese service sector

This study examines the impact of employee perceptions of training on organizational commitment, and the latter's relationship with turnover intentions. Structured equation modelling is conducted on survey data from 437 Chinese employees of five multinational enterprises operating in the Chinese service sector. The results of the survey are consistent with social exchange theory. They highlight the importance of training as a tool to enhance the affective organizational commitment of employees, and reduce turnover. The findings differ from that of previous studies in non-Chinese settings. No evidence was found to indicate that motivation to learn and the perceived benefits of training impact on the organizational commitment of employees. This may be explained by three factors: the involuntary nature of employee training, the limited career development opportunities on offer to local employees of multinational enterprises and the difficulty employees face in applying learnt skills given cultural differences. The implications for research and practice are discussed.

Be nice to your innovators: employee treatment and corporate innovation performance

This paper investigates the effect that employee treatment schemes have on corporate innovation performance. We find that firms with better employee treatment schemes produce more and better patents through improving employee satisfaction and teamwork. Additional tests suggest that our main findings cannot be attributed to job security, unionization, reverse causality, and omitted variables. We also find that firms with better employee treatment schemes produce patents that enhance market valuation and facilitate better future operating performance. Collectively, our findings show that treating employees well benefits firms and shareholders, for well treated employees are encouraged to create intellectual property.