Define contribution plans have a variety of options

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Assertions for each thread must be supported with at least 2 citations in current APA format. You must also post 2 replies of at least 250 words each. Each reply must also cite at least 2 different sources for each reply.

1) According to Martocchio (2015) paid time off consists of specific times that the company allocates for employees based on certain conditions (p. 209). The types of these events differ by occurrence but they all share in common a necessity to have time off. Namely, they encompass particular moments and reasons that employees can take time off for. Specifically, the author lists times such as holiday, vacation, sick leave, personal leave, jury duty, funeral leave, military leave, travel time, rest period, lunch period, integrated paid time off, volunteerism and sabbatical leave (p. 209). Although most companies offer some type of paid time off policy, the types of policies that companies approve varies. In particular, some companies have paid time off banks. This refers to time off policies being combined into one without forcing the employee to justify the reason for taking time off (p. 209). In doing so, the author argues, companies enable employees to feel more freedom and at ease with taking time off.

In general, time off has been seen as a time for employees to unwind and motivation. Altmann & Suess (2015) argue that "by offering temporary time off programs, companies aim at increasing their employer attractiveness. However, little is known about whether temporary time off programs increase the attractiveness of employers" (p. 282). In other words, companies view paid time off as a means to bring more workers into their offices. Presumably, companies believe their current programs do not do enough. As a result, if they increase their offerings, employees will feel more appreciated. The authors make sure to stress that paid time off has not been studied in its ability to attract employees to the company. However, the belief that this thought is accurate seems pervasive.

On one hand, paid time off does seem to motivate employees. One employee states that "to me, having a generous vacation package provides me the time I need to believe I really live" (Emond,2016, p.75). The sentiment that paid time off allows for more time of the employee to dedicate to themselves and goals is an important note. For instance, the employee also states that it allowed her to put her time towards earning a master's degree and also to vacation (p.75). The idea that paid time off applies to a whole myriad of employee goals. In some ways, the idea of paid time off can be considered a form of compensation for the time that the employee has put into the company.

All in all, there are two types of paid time off. Specifically, the paid time off which has been separated into specific times employees can take time off for and an all-encompassing bucket of time that does not require justification. Employers seem to believe that this time is great benefit to employees-although no formal studies have seen that this attracts new employees. However, employees do take the time seriously as a time to take back the hours that have been put into work and direct some time to their own goals.


Altmann, S., & Suess, S. (2015). The influence of temporary time offs from work on employer attractiveness - An experimental study. Management Review, 26(4), 282-305. doi:10.1688/mrev-2015-04-Altmann

Emond, A. E. (2016). Work-Life balance. OD Practitioner, 48(3), 74-75. Retrieved from

Martocchio, J. J. (2015). Strategic compensation: A human resource management approach (8th). Upper Saddle River, NJ: Prentice Hall.


Part A: Discretionary Benefits

A company's new hire structure can be as unique as the business itself. However, there are some known processes that are validated. One area that I did not elaborate on in the case study concerning Nutriment's new hire strategy was the ability to incorporate benefits into the compensation plan. Without analyzing the financials of Nutriment, I would advise Nutriment to invest in discretionary benefits as part of the compensation package. Some of the benefits they should intentionally offer as part of their compensation package are protection programs, paid time off, and services. As Christian's, made in the image of God, we are designed to be intentional and organized just as God is. God intentionally in an organized form, created the heavens and the earth in six days (Genesis 1:1-31, New American Standard Bible). In the beginning, Nutriment should intentionally design the structure of the compensation package with benefits that strategically benefit the company. Not all discretionary benefits, "can contribute to a company's competitive advantage" (Martocchio, 2015). Another important attribute of discretionary benefits is to take into account our responsibility to graciously take care of one another. Paul instructed us to "do nothing from selfishness or empty conceit, but with humility of mind regard one another as more important than yourselves; do not merely look out for your own personal interests, but also for the interests of others" (Philippians 2:3-4, New American Standard Bible). These instructions are relevant when choosing discretionary benefits for employees.

Part B: Defined Contribution Plans

Defined contribution plans have a variety of options. "These include Section 401(k) plans, profit sharing, stock bonus plans, employee stock ownership plans, savings incentive match plans for employees (SIMPLEs), Section 403(b) tax-deferred annuities, and Section 457 plans" (Martocchio, 2015). Whether a defined contribution plan is appropriate for your business you must first understand the assets from the plan that is being considered.

"To value a defined contribution plan, it is necessary to:

· understand the different defined benefit plans;
· understand the plans' basic accounting formula;
· make the necessary adjustments to properly value the participant's equity; and
· apply the vesting formula to the participant's adjusted equity in order to present value the account" (Lipman, 1983).

Although the options are vast, there is not an ideal one that fits all employees or all companies. What they do all have in common is both benefits and costs. The obvious costs of defined contribution plans are the research, implementation, upkeep and any explicit employer contribution amounts. The implicit benefits appear to outweigh the cost associated with some form of defined contribution plans regardless of employee demographics. Susan Lambert, in her research Added benefits: the link between work-life benefits and organizational citizen behavior she addresses the comparison of employees diverse demographics to their perceived benefit usefulness to how the organization supported the employee as well as the commitment into the organizational engagement and behavior. "The more valuable workers found the work-life benefits available to them, the more supportive they viewed their organization as being" (Lambert, 2000). This actual had a direct correlation to engagement back to the organization, due to employees perceiving the level their organization cares and invest in them. This is a form of reciprocity unequivocally related to job performance and organizational behavior.


Lambert, S. (2000). Added benefits: the link between work-life benefits and organizational citizenship behavior. The Academy of Management Journal, 43(5), 801-815. Retrieved from

Lipman, J. (1983). Valuing defined contribution plans. Family Advocate, 5(4), 19-21. Retrieved from
Martocchio, J. J. (2015). Strategic compensation: a human resource management approach (Eighth ed.). Upper Saddle River, NJ: Pearson Education.

Reference no: EM131229560

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