Compensation and Benefits at United Parcel Service: An Analysis

This report provides a detailed analysis of the compensation and benefits offered by United Parcel Service (UPS). It examines various aspects of employee compensation, including hourly wages, salary ranges, and bonus structures for different employee categories, such as full-time, part-time, and seasonal workers. The report highlights the specific compensation levels, such as the base hourly rates and potential bonuses, and also explores the benefits packages available to UPS employees. These benefits include health insurance plans, dental and vision coverage, retirement plans (including 401(k)), and other financial and career development resources. The report also differentiates between the benefits available to full-time and part-time employees, detailing eligibility requirements and specific offerings. Additionally, the report references various sources to support the findings and provides insights into how UPS attracts and retains employees through its compensation and benefits programs. The report also covers topics like career planning, coaching, mentoring, and tuition reimbursement, providing a comprehensive overview of UPS's approach to employee welfare and financial security.

Running Head: United Parcel Service
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Compensation Management
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Contents
United Parcel Service (UPS)...................................................................................................................3
References.............................................................................................................................................8
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United Parcel Service (UPS)
United Parcel Service (UPS), provides the compensation to employee of $17.06 per/hr. The
compensation provided by UPS varies from $10.64 to $28.35 per hour (Teamster, n.d.).
Part time employees at UPS are given $10 salary per hour. For seasonal Package Handler
employee salaries range from $8 - $16. If an employee work 400 hours or more in a fixed
determined period, the compensation provided will be as full time employees for the
corresponding three months period (Teamstercare, n.d.).
The performance and benefits offered by UPS all Package Drivers who are senior and in
progression on August 1, 2013 receive the contractual Wage increases and remain in the
2008-2013 thirty-six month wage progression. Some of the calculated examples are given.
UPS employees in Louisville could earn $250 bonuses each week this summer just for
showing up (Wdrb, 2018).
The bonuses are for part-time package handlers at the Worldport Air Hub who were hired
after Jan. 1. Part-time employees usually work 20 hours a week. Day shift workers can earn
a $150 bonus, while night shift workers are eligible to earn a $200 bonus. Employees who
work Sunday shifts can earn an extra $50.
The bonuses are on top of the regular pay rate of $10.35 an hour. UPS says the extra
incentive helps attract the best workers. "We need employees -- we know it's a competitive
job market," said UPS Public Relations Manager Jim Mayer. "This is a way to make a good
deal even better to bring those people in to come work for us." The bonus program starts this
weekend and goes through July 29 (UPS, n.d.).
United Parcel Service (UPS), employees has various benefits related to welfare and
retirement. United Parcel Service (UPS) provide health insurance of which premiums are
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paid by the organisation for their employees. It makes the contributions tax-free for
companies and employees. There are different services provided by UPS to its employees
such as health, dental, and vision plans. It also provides long term and short term disability
insurance to its employees. UPS also provide financial security to the employees in term of
pension plans in which a contribution is taken from employees from their salary and a
predetermined amount is given to employees upon retirement (Payscale, n.d.),
UPS Part-Time employee benefits
For part time employee UPS eligibility and benefits are different as per the rules. When a part
time employee works for 225 hours or more he becomes eligible for the three month
determination period. The employee working less than 400 hours are eligible for
TeamstersCare benefits (Sec, 2019).
According to Benefits pro (n.d.) the Career benefits available at UPS:
Career Planning: United Parcel Service (UPS) regular monitoring of employees work is done
in order to take out potential and provides direction of employee’s careers.
Coaching and Mentoring: United Parcel Service (UPS) to provide maximum benefit to
employees provides coaching and mentoring so as they become in their sector.
Development Resources: UPS, Development resources are provided to employees to groom
their existing skills and gain new skills continuously.
GED Reimbursement: United Parcel Service (UPS) bears all the cost of the course if an
employee takes a GED.
Leadership Programs: UPS in order to create new leaders provides leadership programs to the
employees.
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Onboarding: UPS does not offer onboarding.
Recognition Programs: To appreciate employees for their hard work Ups has implemented a
recognition program. Employees are given informal rewards which make sure employees are
appreciated.
Tuition Reimbursement: Tis program at UPS provides reimbursement upto 50% of the
college fee for the courses which employees are doing that will benefit the organisation
sooner or later.
According to Benefits pro (n.d.) the Healthcare benefits available at UPS:
Counselling: United Parcel Service (UPS) the counselling program improves psychologically
health of employees by providing experts 24/7 for guidance.
Dental Plan: UPS covers 100% expenses of its employee for preventive dental care.
Health Insurance: United Parcel Service (UPS) it cover various exams and procedure related
to health.
Health Plan Incentives: UPS has different valuable health plan incentives for its employees.
Healthcare Spending Accounts: United Parcel Service (UPS) a part of salary from employees
is deposited into an account for expenses which are not covered under their health plan.
Maternity Support Program: United Parcel Service (UPS) expecting mothers are given access
to quality resources and administrative assistance.
Telehealth: United Parcel Service (UPS) provide access to exams & provide opinion to
employee over the phone. UPS also have its own list of doctors and institutions and also
cover up to 50% of the costs.
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Vision Plan: UPS offers this program for its employees and conduct eye exams the cost of it
is beard by the organisation.
According to Benefits pro (n.d.) the Financial benefits available at UPS:
401(K) Plan: UPS employees looking for economic stability in their late years a contribution
of 6% of salary is deducted and employees are also offered customised investment plan.
Adoption Assistance Reimbursement: UPS if an employee adopts a child the adoption fees is
reimbursed by the organisation.
Bonus Pay: UPS rewards are offered to employees who excel their works.
Childcare Discount: Through this service to employee for early stage of babysitting at UPS.
Commuter Benefit: United Parcel Service (UPS) The Company bears the travel costs for the
employee’s while travelling to work.
Day-care Flexible Spending Account: UPS offers a flexible amount is taken from employees
whom employees can use.
Disability: United Parcel Service (UPS) covers short & long term disability by providing
financial assistance to the employee while they are not working.
Life Insurance: United Parcel Service (UPS) it provides one of the best insurance plan to its
employee with no costs. The insurance policy provides three years’ worth salary to
beneficiaries this include dependent policy for the employee.
Paid Time Off: UPS provides paid holiday to employees which they can spend at their
preferred national location any time in the year.
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Paid Volunteer Time Off: this facility is not available at UPS, it does not provide paid
volunteer time off.
Parental Leave: For eligible employee it has parental leave policy.
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References
Benefits pro (n.d.), Compare UNITED PARCEL SERVICE (UPS)'s Employee Health
Insurance and Benefits, Accessed 1 April 2019 from
https://www.benefitspro.org/reports/7042-compare-united-parcel-service-ups-s-
employee-health-insurance-and-benefits
Payscale (n.d.), United Parcel Service (UPS), Inc. Benefits, Accessed 1 April 2019 from
https://www.payscale.com/research/US/Employer=United_Parcel_Service_(UPS)
%2C_Inc./Benefits
Shrm (2019), Keeping Compensation Fresh in 2019, Accessed 1 April 2019 from
https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/keeping-
compensation-fresh-in-a-tight-labor-market.aspx
Sec (2019), UPS excess coordinating benefit plan, Accessed 1 April 2019 from
https://www.sec.gov/Archives/edgar/data/1090727/000119312509040973/
dex106.htm
Teamster (n.d.), UPS Pay Progressions, Accessed 1 April 2019 from https://teamster.org/ups-
pay-progressions
Teamstercare (n.d.), UPS Part-Time Benefits, Accessed 1 April 2019 from
https://www.teamsterscare.com/active-members-2/ups-part-time-benefits/
UPS (n.d.), Future you makes the world move, Accessed 1 April 2019 from
https://www.jobs-ups.com/life-at-ups
Wdrb (2018), UPS offering bonus incentives to part-time workers through, Accessed 1 April
2019 from https://www.wdrb.com/news/business/ups-offering-bonus-incentives-to-
part-time-workers-through-july/article_c1a1a94f-0584-5b9f-bf79-c4090160a6e7.html
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