Topic7.2 a_benefit and service

1. Welcome toHUMAN RESOURCES
MANAGEMENT
Benefit and Service
Dyah Pramanik, MM
[ ]
Copyright © 2011 Pearson Education, Inc.
publishing as Prentice Hall

2. 8–2
CHAPTER 7.2a
PAY FOR TIME NOT WORKED:

3. 8–3
LEARNING OUTCOMES
1. Name and define each of the main
pay for time not workedbenefits.

4. Benefits
Workers’ Compensation.
Controlling workers’ compensationcosts
1. Death or disability:a cash benefit based on earnings per
week of employment.
2. Specificloss injuries:statutory list of losses.
3. Injured workers are protected by ADA provisions.
1. Screen out accident-prone workers.
2. Make the workplace safer.
3. Thoroughlyinvestigate accident claims.
4. Use case management to return injured employees to work as
soon as possible.
Provides income and medical benefits to work-related accident victims
or their dependents, regardless of fault

5. Supplemental
pay
Executive
services
Insurance
benefits
Retirement
benefits
Types of Employee
Benefits
Benefits

6. FIGURE 13–1 U.S. Health Care Cost Increases*
Total Spending on Health Care 2004 2009 2015
Dollars $1.9 trillion $2.9 trillion $4 trillion
% of GNP 16% 18% 20%
*Note: Figures for 2009 and 2015 estimated. Health care costs rose 7.9% in
2004, about twice the rate of inflation, and are expected to rise at that rate
through 2015.

7. FIGURE 13–2 Private-Sector Employer Benefits Costs by Category,
March 2009

8. TABLE 13–1 Some Required and Discretionary Benefits
* While not required under federal law, all these benefits are
regulated in some way by federal law, as explained in this chapter.
Benefits Required by Federal
or Most State Law
Benefits Discretionary
on Part of Employer*
Social Security
Unemployment Insurance
Workers’ Compensation
Leaves under the Family Medical
Leave Act
Disability, Health, and Life Insurance
Pensions
Paid Time Off for Vacations, Holidays,
Sick Leave, Personal Leave, Jury Duty,
etc.
Employee Assistance and Counseling
Programs
“Family Friendly” benefits for Child
Care, Elder Care, Flexible Work
Schedules, etc.
Executive Perquisites

9. 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

10. Pay For Time Not Worked
Vacations and
holidays
Parental leave
Supplemental
unemployment
benefits
Supplemental
Pay Benefits
Unemployment
insurance
Sick leave
Severance pay

11. Pay for Time Not Worked
• Unemployment Insurance
• Provides for benefits if a person is unable to work
through
no fault of his or her own.
• Is an employer payroll tax that is determined by an
employer’s rate of personnel terminations.
• Tax is collected and administered by the state.
• Vacations and Holidays
• Number of paid leavedays and holidays variesby
employer.
• Qualification for and calculation of holiday and leave
pay variesby employer.
• Premium pay for those who work on holidays.

12. TABLE 13–2 An Unemployment Insurance Cost-Control Checklist
Do You:
• Keep documented history of lateness, absence, and warning notices
• Warn chronically late employees before discharging them
• Have rule that 3 days’ absence without calling in is reason for automatic discharge
• Request doctor’s note on return to work after absence
• Make written approval for personal leave mandatory
• Stipulate date for return to work from leave
• Obtain a signed resignation statement
• Mail job abandonment letter if employee fails to return on time
• Document all instances of poor performance
• Require supervisors to document the steps taken to remedy the situation
• Document employee’s refusal of advice and direction
• Require all employees to sign a statement acknowledging acceptance of firm’s policies and
rules
• File the protest against a former employee’s unemployment claim on time (usually within 10
days)
• Use proper terminology on claim form and attach documented evidence regarding separation
• Attend hearings and appeal unwarranted claims
• Check every claim against the individual’s personnel file
• Routinely conduct exit interviews to produce information for protesting unemployment claims

13. Pay for Time Not Worked (cont’d)
• Sick Leave
• Provides pay to an employee when he or she is out of
work because of illness.
• Costs for misuse of sick leave
• Pooled paid leave plans
• Parental Leave
• The Family Medical Leave Act of 1993 (FMLA)
• Up to 12 weeks of unpaid leavewithin a one-year period.
• Employees must take unused paid leave first.
• Employees on leave retain their health benefits.
• Employees have right to return to job or equivalent position.

14. FIGURE 13–3
Your Rights Under
the Family and
Medical Leave Act
of 1993

15. FIGURE 13–4
Online Request
for Leave Form

16. Pay for Time Not Worked (cont’d)
• Severance Pay
• A one-time payment when terminatingan employee.
• Reasons for granting severance pay:
• Acts as a humanitarian gesture and good public relations.
• Mirrors employee’s two-weekquit notice.
• Avoidslitigation from disgruntled former employees.
• Reassures employeeswho stay on after the employer
downsizesits workforce of employer’s good intentions.

17. Copyright © 2011 Pearson
Education,Inc. publishing as
Prentice Hall
13–17
K E Y T E R M S
• benefits
• supplemental pay benefits
• unemployment insurance
• sick leave
• severancepay
• supplemental unemployment benefits
• workers’ compensation
• health maintenanceorganization
(HMO)
• preferred provider organizations(PPOs)
• group life insurance
• Social Security
• pension plans
• defined benefit pension plan
• defined contribution pension plan
• portability
• 401(k) plan
• savingsand thrift plan
• deferred profit-sharing plan
• employee stock ownership plan (ESOP)
• cash balance plans
• Employee Retirement Income Security Act
(ERISA)
• Pension Benefits GuaranteeCorporation
(PBGC)
• early retirement window
• employee assistance program (EAP)
• family-friendly (or work–life) benefits
• flexible benefits plan/cafeteria benefits
plan
• flextime
• compressed workweek
• workplace flexibility
• job sharing
• work sharing

18. 8–18
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Printed in the United States of America.
Copyright © 2011 Pearson Education, Inc.
publishing as Prentice Hall