Dessler 13


Published on

Eleventh Edition

Published in: Business, Economy & Finance
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Dessler 13

  1. 1. Benefits and Services Chapter 13 Part 4 | Compensation
  2. 2. After studying this chapter, you should be able to: <ul><li>Name and define each of the main pay for time not worked benefits. </li></ul><ul><li>Describe each of the main insurance benefits. </li></ul><ul><li>Discuss the main retirement benefits. </li></ul><ul><li>Outline the main employees’ services benefits. </li></ul><ul><li>Explain the main flexible benefit programs. </li></ul>
  3. 3. Benefits Supplemental Pay Employee Services Insurance Benefits Retirement Benefits Types of Employee Benefits
  4. 4. Policy Issues in Designing Benefit Packages Policy Issues Who will be covered Coverage during probation Degree of employee choice Which benefits to offer Whether to include retirees How to finance benefits Cost containment procedures Communicating benefits options
  5. 5. Pay For Time Not Worked Vacations and Holidays Parental Leave Supplemental Unemployment Benefits Supplemental Pay Benefits Unemployment Insurance Sick Leave Severance Pay
  6. 6. Insurance Benefits <ul><li>Workers’ Compensation </li></ul><ul><ul><li>Provides income and medical benefits to work-related accident victims or their dependents, regardless of fault. </li></ul></ul><ul><ul><ul><li>Death or disability: a cash benefit based on earnings per week of employment. </li></ul></ul></ul><ul><ul><ul><li>Specific loss injuries: statutory list of losses </li></ul></ul></ul><ul><ul><li>Controlling workers’ compensation costs </li></ul></ul><ul><ul><ul><li>Screen out accident-prone workers. </li></ul></ul></ul><ul><ul><ul><li>Make the workplace safer. </li></ul></ul></ul><ul><ul><ul><li>Thoroughly investigate accident claims. </li></ul></ul></ul><ul><ul><ul><li>Use case management to return injured employees to work as soon as possible. </li></ul></ul></ul>
  7. 7. Trends in Health Care Cost Controls Communication, Involvement, and Empowerment Health Savings Accounts Premiums and Co-Pays Cost-Control Trends Prevention Programs Claim Audits
  8. 8. Other Cost-Control Options Automating health care plan administration Defined contribution health care plans Eliminating retiree health care coverage Benefits purchasing alliances Controlling Health Care Costs Outsourcing health care plan administration
  9. 9. Retirement Benefits (cont’d) Membership Requirements Vesting Benefit Formula Plan Funding Policy Issues In Pension Planning
  10. 10. Retirement Benefits (cont’d) Defined Benefits Plans Defined Contribution Plans Qualified Plans Nonqualified Plans Types of Pension Plans
  11. 11. Retirement Benefits (cont’d) 401(k) Plans Employee Stock Ownership Plans (ESOPs) Savings and Thrift Plans Types of Defined Contribution Plans Deferred Profit-Sharing Plans Cash Balance Pension Plans
  12. 12. Personal Services (cont’d) Be aware of legal issues. Ensure professional staffing. Steps for Launching an EAP Program Develop a policy statement. Maintain confidential record-keeping systems. 1 2 3 4
  13. 13. Flexible Benefits Programs <ul><li>Cafeteria (Flexible Benefits) Approach </li></ul><ul><ul><li>Each employee is given a limited benefits fund budget to spend on preferred benefits. </li></ul></ul><ul><ul><li>Types of plans </li></ul></ul><ul><ul><ul><li>Flexible spending accounts </li></ul></ul></ul><ul><ul><ul><li>Core plus option plans </li></ul></ul></ul><ul><li>Flexible Work Arrangements </li></ul><ul><ul><li>Flextime schedules </li></ul></ul><ul><ul><li>Compressed workweek schedules </li></ul></ul><ul><ul><li>Job sharing </li></ul></ul><ul><ul><li>Work sharing </li></ul></ul><ul><ul><li>Telecommuting </li></ul></ul>
  14. 14. K E Y T E R M S <ul><li>benefits </li></ul><ul><li>supplemental pay benefits </li></ul><ul><li>unemployment insurance </li></ul><ul><li>sick leave </li></ul><ul><li>severance pay </li></ul><ul><li>supplemental unemployment benefits </li></ul><ul><li>workers’ compensation </li></ul><ul><li>case management </li></ul><ul><li>health maintenance organization (HMO) </li></ul><ul><li>preferred provider organizations (PPOs) </li></ul><ul><li>group life insurance </li></ul><ul><li>Social Security </li></ul><ul><li>pension plans </li></ul><ul><li>defined benefit pension plan </li></ul><ul><li>defined contribution pension plan </li></ul><ul><li>portability </li></ul><ul><li>401(k) plan </li></ul><ul><li>savings and thrift plan </li></ul><ul><li>deferred profit-sharing plan </li></ul><ul><li>employee stock ownership plan (ESOP) </li></ul><ul><li>cash balance plans </li></ul><ul><li>Employee Retirement Income Security Act (ERISA) </li></ul><ul><li>Pension Benefits Guarantee Corporation (PBGC) </li></ul><ul><li>vested funds </li></ul><ul><li>early retirement window </li></ul><ul><li>employee assistance program </li></ul><ul><li>family-friendly benefits </li></ul><ul><li>flexible benefits plan/cafeteria benefits plan </li></ul><ul><li>flextime </li></ul><ul><li>compressed work week </li></ul><ul><li>job sharing </li></ul><ul><li>work sharing </li></ul><ul><li>telecommuting </li></ul>