Compensation and benefits in the workplace are very different for the "baby boomer" generation in comparison to the benefits received by their parents. Parents of baby boomers worked for one company, put in their hours, and received a pay check. The amount of the take-home pay was fairly stable. Job security meant getting a job with a large corporation or government agency. One of the parents, usually the father, was a part of the company team until retirement. The company was an integral part of family life. The place of employment provided a social outlet, promised a secure retirement, and paid for complete medical coverage for the family.
Times have changed. The most significant change in employer/employee relationships is the shift of responsibility from the employer to employee. Across the country, companies are becoming less paternalistic in their management of employees. Companies are giving employees the opportunity to participate in the selection and planning of their retirement, compensation and other benefits programs. In another area, companies are becoming less paternalistic in their treatment of employees as workers. Employees are valued for their skills, levels of performance, and contributions to the growth and well-being of the company. Employers can no longer afford to carry long-term employees until retirement if they do not perform. Downsizing and reengineering are taking their toll on the workforce.
Retirement and pay are the two areas in benefits and compensation programs which have been the most affected. While many companies still offer some type of defined benefit plan, more than 65 per cent now also offer one or more contribution plans. Plans may include any one or more of the many available options--the popular 401(k), profit-sharing, and stock option programs, to name a few. Many small companies cannot support the costs of funding a defined benefit plan. This is one of the reas...