Human resources in transition
Diesel2018
Ch11_PowerPoint_Benefits.pptxBenefits
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chapter 11
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why do organizations offer employee benefits?
What are mandatory benefits, and why do organizations offer them?
What are customary benefits, and why do organizations offer them?
What are optional benefits, and why do organizations offer them?
What are some of the challenges in communicating benefits information to employees?
What influences an organization’s benefit choices?
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Learning Objectives
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What Is the Purpose of Benefits?
When salary budgets are tight, or when the hiring market is competitive, providing better benefits than competitors can help organizations attract and retain top employees.
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Types of Benefits—Mandatory
Mandatory Benefits
Required by law of organizations with a certain number of employees
Social Security
retirement income to qualified workers and their spouses after working a certain number of hours
Unemployment insurance
temporary income during periods of involuntary unemployment
Workers’ compensation
pays for medical costs and sometimes time off if an employee suffers a job-related sickness or accident, and survivor benefits in the case of an employee’s death
FMLA leave
most employers must provide employees up to 12 weeks of unpaid leave to care for family members
COBRA health coverage
a continuation of group health coverage for employees and qualified beneficiaries who might otherwise be ended when an employee experiences a qualifying event
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Types of Benefits—Customary
Customary Benefits
Life insurance: pays a beneficiary or beneficiaries a sum of money after the death of an insured individual
Health coverage: health care coverage for employees and their dependents
Retirement plans: defined benefits retirement plans and defined contribution retirement plan
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Benefits—Optional
Optional Benefits
Free food, exercise facilities, telecommuting, and other things that are at the discretion of the organization
Work-life benefits: telecommuting
Domestic partner benefits: providing benefits to two people who are not married, but are in a same-sex or opposite-sex arrangement similar to marriage
Flexible spending account: an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pretax basis
Nonfinancial benefits
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Types of Benefits
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Table 11-2
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Creative Benefits
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Table 11-4
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Benefits in Different Countries
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Table 11-4
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Case Study: Benefits at PwC
Exercise
What are the advantages of offering core benefits? Why not let employees choose all of their benefits?
How might offering such a variety of benefits create a competitive advantage for PwC?
Which benefits have the most appeal to you? Are there any benefits that you would require before accepting a job? Why?
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Communicating Benefits Information
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Benefits workshops, employee meetings, and social networking tools can help ensure that the benefits program is valued, understood, and best used by employees.
Total compensation statement: communicating total compensation in detail through a written summary of employee direct and indirect compensation
Benefits communication tools: regular mail, e-mail, text messages, benefits website, QR codes, face-to-face communication
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Total Compensation
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Table 11-5
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Managing Benefits
Benefits level: the choice of how much to invest in employee benefits influenced by the organization’s competition for talent, the compensation strategy, the organization’s culture, and characteristics of the organization’s workforce
Flexible benefit plans: give employees a set amount of credits or dollars to allocate among different benefits options provided by the employer
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
