BNY

Bank of New York Mellon
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The Bank of New York Mellon provides its employees with benefits plans
like pension plans, retirement plans, compensation plans and cash
balance benefit plans. The suggest solution here for Bank of New York
Mellon is to add child care benefit plans for employees. Child care
benefit plan would not only impact the company as a whole but would also
facilitate employees, in focusing more on their work. Employees, who are
parents, would be able to give their fullest to the company, and their
productivity would go up.
Bank of New York Mellon has a satisfactory record when it comes to
facilitating their employees and giving them the assistance of help that
they need in the working environment and at home. In older times,
employees used to come to work, do their jobs, attend to their
responsibilities and return home. Times have changed now. There is an
increasing communication between the employee and the employer and a
side by side increase in responsibility of an employer towards his
employee. Employees are assets of an organization therefore they are
also the priority. Bank of New York Mellon should implement the child
care benefit plan, and they would see a different kind of attitude of
employees, once they do that (BNY Mellon benefit plans, 2012).
To make sure that providing a child care benefit plan is the right
decision, BNY Mellon should evaluate some things. Firstly, they need to
see the reason why some employees leave their company. The reasons of
why an employee leaves a company can be known from their exit
interviews. Sometimes, employees leave a company because they have
better job offers with benefit plans and sometimes they leave because
they are not satisfied with the working environment or the management of
the company. Bank of New York Mellon should look interviews of employees
who left and should see whether the number of employees, who left,
because of the reason of no child care benefit plan, is significant.
Secondly, Bank of New York Mellon should also consider the fact that if
they offer child care benefit plans for employees, then this could prove
to be an attractive strategy when hiring employees. Existing employees
would also least consider the option of leaving the company, as they are
being offered an attractive benefit plan.
Child care benefit plan would prove to be an advantage for Bank of New
York Mellon. Child care benefit plan would promote meaningful
interactions between employees and the bank’s management. A child care
benefit plan would cover many aspects. Parents can use the child benefit
plan by spending money on babysitters for their children while the
parents are at work or some event. The money can also be used to cover
vacation plans, house care, pre-school, health care of the child which
includes home nurses and kindergarten (Implementing Family-Friendly
Child Care: Benefits for Families and Centers, 2004)
Before setting terms and conditions of eligibility, Bank of New York
Mellon should decide how they want their child benefit plan to function.
The bank has two options, to outsource child care services, or to make
their own department. Developing a department and outsourcing are both
expensive methods, but the long-term advantage of child care benefit
plan, out weights its cost. The company should choose the option of
outsourcing, as it would eliminate the burden of developing a department
specifically for the purpose of child care.
Bank New York Mellon can implement the child benefit plan by first
mentioning the criteria, through which employees would know if they are
even eligible for the child care benefit plan. Bank of New York Mellon
should specify that each employee needs to be approved before they can
benefit from the child care plan. Employees would be eligible if they
have children and are required to pay for child care. Some employees are
single parents or are divorced. Single parents would be eligible for the
child care plan, whereas the divorce parent’s eligibility would depend
on whether he is still entitled to pay child care. If an employee’s
child is immunized, the employee is eligible for the benefit plan and
even if the child is not supposed to be immunized, the employees can
still benefit from the program. Employees also need to meet the
residency requirements and the income tax. Some other factors which
would impact the eligibility of employees would be the school starting
age of their child, changes in income in case an employee gets a raise
in salary, a promotion or a bonus. If the employee is already in a
salary sacrifice arrangement with the bank, then he is automatically
eligible for child care and all the related child care fees are paid for
the employee.
Bank of New York Mellon should also set the number of hours that an
employee would get child care in a week or a month. Employees should be
given maximum twenty four hours of child care benefit per week, in case
the employee is the parent of the child. If the employee is a
grandparent, then the bank should give the benefit of fifty hours per
week. Also, if both parents work, then they should also get fifty hours
of child care. Every employee should be given brochures to guide them
through the process of registering for child care plan. Brochures would
further educate employee on their eligibility and details of options
that Bank of New York Mellon is offering them. Bank’s interest in the
personal life of employees, would give them a sense of belonging towards
the bank, and they would feel motivated to work hard, in order to take
advantage of benefit plans.
Bank of New York Mellon should give employees the advantage of paying
for education till kindergarten. Children who are three or four years
old should be given fifteen hours of nursery education. Fifteen hours
should apply weekly, which would finish till forty weeks. After the
child goes to pre-school, the bank can provide employees with day care
facilities and playgroups (Child Care Benefit, 2012).
The bank should give working parents the facility of flexible hours, so
that they can balance work and family. This would give Bank of New York
Mellon satisfied employees, and they would not have to spend so much on
child care. However, child care is essential, and Bank of New York
Mellon should pay specific attention in implementing the benefit plan
and then conducting a follow up. A follow up would let the bank know
whether the employees feel motivated and if they are receiving benefits
accordingly to what was promised *” Childcare benefits, tax credits
and other help for working parents, 2012).
Upbringing of a child is an expensive process. Bank of New York Mellon,
in order to retain or motivate employees, need to effectively implement
the child benefit care plan. The plan should be well-communicated. The
management should sort out employees who fulfill the requirements of
eligibility. The eligible employees should have children and must be
according to the requirements mentioned above. The management of New
York Mellon should then send forms and documents to employees. These
forms and documents must discuss in detail about the child care benefit
plan, and how this plan would affect or facilitate the employee. The
bank should tell employees that they have an opportunity to take better
care of their children and the organization cares about their personal
lives too. The child care benefit plan would interest employees and it
would also positively impact the brand image of the bank. If an
employee’s child is sick, that sickness would not only affect the
child but also the productivity of the employee. Thus, not providing
child care, would be a disadvantage for the bank too. Bank of New York
Mellon should also understand that if they provide child care services,
employees would be less stressed and worn out at the end of the day.
Employees would also be more loyal and committed towards the company,
and they would be more likely to stay employees of New York Mellon. The
bank should treat setting up budget for child care benefit plan as an
investment in the future, instead of an expense.
Management of New York Mellon can communicate the child care benefit
plan through a parent seminar, in which they can list the
characteristics of the benefit plan. Parents would want to know what
their child would be doing, while they are working. Parents would also
like to know the company or the people who would be handling their
children. Communicating through a seminar would be less expensive than
communicating the plan individually. Employees can meet their child’s
care taker in person and be satisfied about their child’s safety and
development.
Bank of New York Mellon should also specify the child care benefit plan
on their website and after a candidate is selected for a job. Mentioning
the details of the child care benefit plan on the website would give
employees and nonemployees further information of the benefit plan.
Non-employees would be attracted towards the bank and would appreciate
the efforts that the bank has put in to retain and motivate employees.
The biggest advantage that the Bank of New York Mellon is going to
achieve from this benefit plan is the increase in the productivity of
employees and a solid brand image.
Bank of New York Mellon should consider the budget that they need to
assign to this benefit plan. The budget would be set for every year. The
budget would consist of money for a child’s education up to
kindergarten, health care, babysitting, playgroup and outdoor trips.
Expenses of child care would vary from employee to employee, because
they would have different number of children, going to different
schools, with different health problems.
Bank of New York Mellon can also try discount programs, in which instead
of paying for child care, they can simply get parents discounts on the
necessities of child care. This would reduce the cost burden from the
bank. Another point that Bank of New York Mellon should consider is
that, that they have a diverse workforce, and they would need to
outsource a company which can handle children from different
backgrounds. Employees from different cultures and languages would want
their child to learn what they had. This would be a challenging task for
Bank of New York Mellon as outsourcing a company that deals with
diversification would be hard to find. Bank of New York Mellon would
have to increase their budget to accommodate the changes.
The steps involved in implementation of the child care benefit programs
are to first communicate with the employees and tell them what the bank
is offering. Secondly, sort out employees who are eligible for the child
care benefit plan. Thirdly, draw up a budget to support the benefit
plan. Fourth, conduct a seminar to further give parent’s details about
the activities that their child would be involved in and the people who
would be looking after them. That is how the plan can be effectively
implemented to function.
The child care benefit plan for the employees of Bank of New York Mellon
would be expensive, but keeping in view the long term benefits of the
plan, the Bank of NYM should consider implementing it effectively.
Further, after the implementation of the plan, the bank should conduct a
follow up. The follow up should see whether the plan had an impact on
the performance or employees. The follow up should also observe if there
is any significant impact of the child care benefit plan on the company
as a whole. If both the things are positive, then it would be a smart
move on the bank’s part.
References
Abrams, R. (2003). An easy to give child care benefit. Retrieved August
25, 2012, from HYPERLINK
“http://www.inc.com/articles/2003/04/25366.html”
http://www.inc.com/articles/2003/04/25366.html
BNY Mellon benefit plans. (2012). Retrieved August 25, 2012, from
HYPERLINK
“http://www.bnymellon.com/search/mellon/search.cgi?query=benefit+plans”
http://www.bnymellon.com/search/mellon/search.cgi?query=benefit+plans
Child Care Benefit. (2012). Retrieved August 24, 2012, from HYPERLINK
“http://www.humanservices.gov.au/customer/services/centrelink/child-care
-benefit”
http://www.humanservices.gov.au/customer/services/centrelink/child-care-
benefit
Childcare benefits, tax credits and other help for working parents.
(2012). Retrieved August 24, 2012, from HYPERLINK
“http://www.direct.gov.uk/en/Parents/Childcare/DG_4016029”
http://www.direct.gov.uk/en/Parents/Childcare/DG_4016029
Implementing Family-Friendly Child Care: Benefits for Families and
Centers. (2004). Retrieved August 24, 2012, from HYPERLINK
“http://www.abcdependentcare.com/docs/implementing-family-friendly-child
-care-benefits.pdf”
http://www.abcdependentcare.com/docs/implementing-family-friendly-child-
care-benefits.pdf
Hahn, C. (2007). Day Care: An Office Affair. Retrieved August 25, 2012,
from HYPERLINK
“http://www.businessweek.com/debateroom/archives/2007/04/day_care_an_off
ice_affair.html”
http://www.businessweek.com/debateroom/archives/2007/04/day_care_an_offi
ce_affair.html
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