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HRM Dessler CH# 13
This document discusses employee benefits and compensation. It covers several types of benefits including supplemental pay benefits like vacations, holidays, and severance pay. Insurance benefits like workers' compensation and health insurance are examined. Retirement benefits such as defined benefit plans and defined contribution plans are also outlined. The document considers policy issues in designing benefit packages and strategies for controlling healthcare costs. Flexible benefit programs and work arrangements are described as well. Key terms related to benefits and compensation are defined.
HRM Dessler CH# 13
- 1. Human Resource Management 1 ELEVENTH EDITION GARYDESSLER Part 4 | Compensation Chapter 13 Benefits and Services © 2008 Prentice Hall, Inc. All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama
- 2. After studying thischapter, you should be able to: 1. Name and define each of the main pay for time not worked benefits. 2. Describe each of the main insurance benefits. 3. Discuss the main retirement benefits. 4. Outline the main employees’ services benefits. 5. Explain the main flexible benefit programs. © 2008 Prentice Hall, Inc. All rights reserved. 13–2
- 3. Benefits Types of Employee Benefits Supplemental Pay Insurance Benefits ©2008 Prentice Hall, Inc. All rights reserved. Retirement Benefits Employee Services 13–3
- 4. Policy Issues inDesigning Benefit Packages Which benefits to offer Who will be covered Whether to include retirees Coverage during probation Policy Issues How to finance benefits Degree of employee choice Cost containment procedures Communicating benefits options © 2008 Prentice Hall, Inc. All rights reserved. 13–4
- 5. Pay For TimeNot Worked Vacations and Holidays Unemployment Insurance Sick Leave Supplementa l Pay Benefits Severance Pay © 2008 Prentice Hall, Inc. All rights reserved. Parental Leave Supplemental Unemployment Benefits 13–5
- 6. Insurance Benefits • Workers’Compensation Provides income and medical benefits to work- related accident victims or their dependents, regardless of fault. Death or disability: a cash benefit based on earnings per week of employment. Specific loss injuries: statutory list of losses Controlling workers’ compensation costs Screen out accident-prone workers. Make the workplace safer. Thoroughly investigate accident claims. Use case management to return injured employees to work as soon as possible. © 2008 Prentice Hall, Inc. All rights reserved. 13–6
- 7. Trends in HealthCare Cost Controls Cost-Control Trends Communication, Involvement, and Empowerment Premiums and Co-Pays Prevention Programs © 2008 Prentice Hall, Inc. All rights reserved. Health Savings Accounts 13–7 Claim Audits
- 8. Other Cost-Control Options Automatinghealth care plan administration Defined contribution health care plans Controlling Health Care Costs Outsourcing health care plan administration Eliminating retiree health care coverage Benefits purchasing alliances © 2008 Prentice Hall, Inc. All rights reserved. 13–8
- 9. Retirement Benefits (cont’d) PolicyIssues In Pension Planning Membership Requirements Benefit Formula © 2008 Prentice Hall, Inc. All rights reserved. Plan Funding Vesting 13–9
- 10. Retirement Benefits (cont’d) DefinedBenefits Plans Defined Contribution Plans Types of Pension Plans Qualified Plans Nonqualified Plans © 2008 Prentice Hall, Inc. All rights reserved. 13–10
- 11. Retirement Benefits (cont’d) Typesof Defined Contribution Plans 401(k) Plans Savings and Thrift Plans Deferred Profit-Sharing Plans © 2008 Prentice Hall, Inc. All rights reserved. Employee Stock Ownership Plans (ESOPs) 13–11 Cash Balance Pension Plans
- 12. Personal Services (cont’d) Stepsfor Launching an EAP Program 1 Develop a policy statement. 2 Ensure professional staffing. 3 Maintain confidential record-keeping systems. 4 Be aware of legal issues. © 2008 Prentice Hall, Inc. All rights reserved. 13–12
- 13. Flexible Benefits Programs •Cafeteria (Flexible Benefits) Approach Each employee is given a limited benefits fund budget to spend on preferred benefits. Types of plans Flexible spending accounts Core plus option plans • Flexible Work Arrangements Flextime schedules Compressed workweek schedules Job sharing Work sharing Telecommuting © 2008 Prentice Hall, Inc. All rights reserved. 13–13
- 14. KEY TERMS benefits supplemental paybenefits unemployment insurance sick leave severance pay supplemental unemployment benefits workers’ compensation case management health maintenance organization (HMO) preferred provider organizations (PPOs) group life insurance Social Security pension plans defined benefit pension plan defined contribution pension plan portability 401(k) plan © 2008 Prentice Hall, Inc. All rights reserved. savings and thrift plan deferred profit-sharing plan employee stock ownership plan (ESOP) cash balance plans Employee Retirement Income Security Act (ERISA) Pension Benefits Guarantee Corporation (PBGC) vested funds early retirement window employee assistance program family-friendly benefits flexible benefits plan/cafeteria benefits plan flextime compressed work week job sharing work sharing telecommuting 13–14