Comparison Of Compensation, Benefits And Healthcare Services In Different Countries

Abstract 

Compensation and benefits are an integral part of any employee satisfaction package. Most companies have a standard policy which is applied to different employees based on their levels. The standard practice should be equitable and should be the standard that is used in the home country. The country plays a huge role in determining the amount of compensation and benefits that employees receive. Different countries pass different laws and regulations regarding employee compensation. Analyzing the different countries is important to understand how the countries compare and to identify ways that compensation and benefits plans can be improved for the different countries. This paper compares the compensation, benefits, and healthcare services of Canada, the United Kingdom, France, and the United States. 

Compensation and Benefits Package 

Canada 

Canada is a country that has a competitive compensation and benefits package that is similar to the United States. Canada has a stated minimum wage law. The pay scale is usually set based on the province where an individual works. This is different from the United States where the minimum wage is set by the federal government and wage laws can be set by the state. In case there is a higher amount of minimum wage law that is different between the state and the federal minimum wage law, the worker is entitled to the higher amount (Baskaya & Rubinstein, 2012). 

The Canadian law states that their employees are entitled to paid holidays and can have two weeks of paid vacation. The United States is different because employers have the option to offer paid vacation and paid holidays. 

In the event that one has a baby, Canadians are entitled to both paternity and maternity leave. Canada offers a maternity leave of approximately 17 weeks while the United States offers a maternity leave of approximately 14 weeks. Canada recently adopted a compensation care program that could run for up to 18 months (Abedi, 2018). It involves an unpaid leave for one to care for their family member. The compensation in the United States is known as a Family and Medical Leave Act. It would provide up to 12 weeks of unpaid leave for one to care for their family member or simply themselves (Givati & Troiano, 2012). 

Canada does not provide time off for individuals in the military. This is different from the United States where in case an employee is in the reserves, they can be given some time off to meet any military requirements. An employer can hold a military position for up to 6 months of deployment where they should be reinstated to their original position afterward (Martocchio, 2011). Canada offers a pension and retirement plan that is similar to the United States. The plan followed by Canada has several similarities to the plan that is offered in the United States. It is similar to the 401(k) plan that is offered in the United States (Lusardi and Mitchell, 2011). 

United Kingdom 

The pension and retirement plan in the UK is also similar to that of the United States. UK employers are required to provide their employees with a workplace pension that has a pre-agreed contribution rate. It should involve a pension plan that is 5% of the basic salary. The UK Workplace Pension is similar to the 401(k) plan in the United States but is different because it does not allow accessing the funds before one ’s retirement (Lusardi and Mitchell, 2011). 

The UK offers a Group Life Assurance that is described as death in service which is higher than that offered in the United States. The UK makes a provision for life assurance that ranges between three to four times that of the United States. Most UK employers self-insure in case an employee is absent due to injury or illness. Employees are usually entitled to payments in case they fall ill and are unfit for work. The provision for disability in the UK is similar to that of the United States. It allows for coverage of approximately 66% of an individual’s salary after 14 days of absence due to an injury or illness (Dixon and Scheurell, 2016). 

France 

The compensation package in France is also competitive when compared to that of the United States. Employers have to compensate individuals for working more than 35 hours per work. The 35-hour limit is due to the shorter working week in France created to reduce unemployment. In case employers exceed the limit, workers are entitled to RTT days which stands for R éduction du Temps de Travail (Lehndorff, 2014). This is additional time for paid holidays, it is the reason why several French workers can take a whole month off. Employers that do not provide with a time off have to pay an individual for the overtime. 

The regulation of family care is quite different in France. Employers are required to provide up to four days off when one gets married and two days off in case a family member dies. Individuals are also guaranteed a day off when one partner joins the civil union and a day off when one of their children engages in a wedding. The French government also provides a minimum wage to protect its employees. The minimum wage in the country is an equivalent of $10.90 (" The Benefits and Perks of Working in France ", 2014). 

Employers are also entitled to provide up to 16 weeks of paid maternity leave which should be taken six weeks before delivery and ten weeks after. There are regulations for one to qualify for maternity leave. One should be registered with the social security system of France ten months before giving birth. Additionally, one should have worked for more than 200 hours over the past three months. Paternity leave is also provided where dads are entitled to 11 consecutive days off from the birth of their child. In case one has twins, the father can get an additional six days off (" The Benefits and Perks of Working in France ", 2014) . 

What Countries Might do Better 

The employee compensations and benefits package in the three countries is well-established and similar to that of the United States. However, there are ways which they can be improved to ensure employee satisfaction and to ensure the adequate protection of citizens in a specific country. For instance, the paid sick leave can be improved in Canada to go for a higher number of days. The current system involves employees getting two weeks of sick leave at the company with the provision for a few additional days. In order to combat the spread of illness as a result of employees attending work while sick, employers can provide sick leave for a certain number of additional days as long as the employee is not feeling well. 

Educational support with payment should also be incorporated into the laws and regulations of different countries. In the current work environment, individuals should become lifelong learners so that the entire economy can improve. While some companies provide a paid educational leave, other companies do not. The UK and France government can incorporate a stated number of days for educational leave for individuals. The leave should involve a paid plan that could be a certain percentage of one’ s income. 

Many employees also today face several challenges with the work-life balance. Economic challenges have led to many people overworking which reduces their productivity. Regulations should be set up to ensure that employees can get additional time off and spend additional time with their families. The number of days where individuals get time off when dealing with family issues should be increased in the United States. Additionally, the number of vacation days in the United States should be improved. Compared to other countries that provide a paid vacation time for up to one month, the United States offers only leave days. Increasing the number of vacation days should enable different individuals to achieve a work-life balance and this, in turn, increases productivity. 

Health Insurance Benefits 

Canada 

The governments of both the United States and Canada are actively involved in the country ’s healthcare. However, there is a structural difference in the health insurance offered by the two countries. The federal government in Canada provides funding support for provincial governments for their healthcare expenditure as long as they abide by certain laws and regulations set by the Canada Health Act. The Canadian system is different from the public delivery system like that in the UK. 

The Canadian healthcare system follows a single-payer system. The single-payer system means that only one party, the Canadian government, pays for healthcare and has full control of the healthcare systems. However, the system is not owned by the government. Canadian doctors operate on a private basis and their healthcare facilities operated privately. The systems are mostly paid for through the use of taxes. The single-payer system has several advantages. For instance, prescription drugs become more affordable. This is because the government can buy them in bulk and reduce competition among different sellers (Blomqvist and Busby, 2017). 

The Affordable Care Act in the United States does not follow a single-payer system. It is a multi-tiered system where different individuals and different parties for care. Americans can personally pay for the costs of care with subsidies provided based on one’s income level. A large percentage of Americans receives their healthcare from their employer, 50 million receive through the federal Medicare program while 60 million receive through Medicaid (Squires and Anderson, 2015). 

As long as one is a legal citizen in Canada, they are entitled to healthcare and are automatically enrolled in a territorial or provincial health plan. This is different from the United States where the Affordable Care Act (ACA) does not establish the right for an individual to have access to healthcare, it also does not provide automatic coverage for anyone. The Affordable Care Act follows the American mentality which states that healthcare is something that an individual would have to pay for. The system makes it easier to provide care for more people at low costs and provides poor people with programs that could cover the costs. 

The provision of health care insurance in the United States by the government is largely limited to Medicaid, Medicare, and the State Children ’s Health Insurance Program. The program covers eligible elderly, the poor, the disabled, and children. The government also runs a veteran administration program that provides care to the disabled or retired veterans, their families, and survivors through clinics and medical centers. 

France 

The health care system of France follows universal health care which is mainly financed by the government ’ s national health insurance. Approximately 77% of health expenditures in France are usually covered by agencies funded by the government. France has been known to offer one of the best overall health care compared to other developed nations. France also spent less on health care compared to the United States. A 2011 study estimated that France spends 11.6% of its GDP on health care. This amount is higher than that of other countries in Europe but is less than that of the US. The United States spends 16 percent of its GDP on healthcare. The capita in dollars becomes even more dramatic. By that measure, the United States spends averagely twice the same amount on health care as France (Squires and Anderson, 2015) However, the United States has less to show for its huge expenditures in healthcare. 

The French health care system is at the top of international ranking while the United States falls is below the list. The US health care policymakers have a lot to learn from other countries like France. The French system shows that it is possible to universal access to health care of optimum quality. The French system also maintains the freedom of choice for its doctors and patients. Patients in French have the freedom to choose their own doctors with little or no restrictions and can see a specialist of their choice. French doctors have the freedom to choose treatment options that they find appropriate. For instance, France can make use of cutting-edge treatments and cancer drugs can cost $100,000 per year. The use is restricted in other countries such as the US and also by governments such as the UK and Canada. 

United Kingdom 

The healthcare system of the UK and US are largely different and represent different extremes in healthcare. The US has one of the largest private health care system while the UK has the largest public sector system. The coverage of healthcare in the UK is largely universal. The health care is provided by the National Health Service where ordinary residents in England become automatically entitled to the care. The care is largely free at the point of use and nonresidents that have a European Health Insurance Card can get care. Additionally, other people such as undocumented immigrants and non-European visitors can get free treatment for infectious diseases or emergency treatments. 

The care provided by the National Health Service is free at the point and available for anyone that needs it. It is easy to access and one does not have to fill any huge amount of paperwork. It is free whether one goes to the hospital or one goes to see a family doctor. No one in the UK can thus go bankrupt as a result of medical costs. No one should delay medical treatment because they cannot afford it or because they are not insured. 

The United Kingdom spends 9.9 percent of its GDP on health care. The NHS accounts for 79.5 percent of the total expenditure on public funding (Squires and Anderson, 2015). This is the lowest percent when compared to other developed countries such as France, Netherlands, Germany, Switzerland, and France. A large percentage of the funding of the NHS comes from general taxation while a small percent comes from the national insurance which is a payroll tax. The percentage of healthcare provided directly by the state is higher in the UK compared to other European countries. Other countries have insurance-based healthcare systems and the state provides for those that cannot afford insurance. 

Private health insurance is also provided for different residents in the UK. Approximately 10.5 percent of the population in the UK have private voluntary health insurance. Many individuals opt for private insurance because they offer convenient and rapid access to care. They offer the best policies for maternity services, mental health, general practice, and emergency care. 

Salary 

The average salary of the United States is largely similar to that of Canada, the United Kingdom, and France. The United States has the largest salaried individuals amounting to an average of $4,893 in the group. Canada has an average salary of $4,134, the United Kingdom has an average salary of $3,461, and the average salary of France is $3,374 (Squires and Anderson, 2015). The data shows that the average income of an American and a Canadian are almost similar. The United Kingdom and France have similar salaries but France has the lowest average income. 

Paid Time Off 

Employees in Canada are entitled to a minimum of 20 days off every year. This can be different for some companies where they have a policy of getting extra days once one stays in the company for several years. Companies are not required to pay for sick days in some states. For instance, in Ontario, companies that have 50 employees or more do not offer sick days. The tradition is that companies can offer up to 5 paid sick days. 

U.K employees have additional leave days and have a paid vacation time of approximately 5.5 weeks. This is in contrast to the U.S which does not have paid or unpaid or vacation time. Paid vacation time in the UK is accepted and they are entitled to paid sick time. France citizens are also guaranteed five weeks of vacation. Apart from the additional five weeks, they can several dozens of public holidays. 

Conclusion 

The United States compares favorably with Canada, the United Kingdom, and France. The three countries have several similarities regarding the compensation and benefits program. They are geared toward protecting employees from exploitation by employers. Employers are entitled by the different countries to provide paid sick leave, leave days, and family or medical leaves. Some countries such as the United Kingdom and France offer additional vacation days that can run for 5 weeks. The health insurance benefits for the different countries vary widely. Canada is popular for being a single-payer system while the United States ’ care relies on Medicaid and Medicare. The United Kingdom and France offer a free health care system for its citizens. 

References 

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