***Mathguy18***

UNIT VI STUDY GUIDE

Understanding Benefits

Tired and frustrated? Need to make a change? Have a job but not satisfied with the benefits package? These are a few questions or statements that may be running through your head on a regular basis. What is in it for me? When conducting a job search, accepting a job offer, and starting a new job, how it benefits you comes to mind. Oftentimes, monetary compensation has a big impact on our career decisions, but many individuals are more interested in the employee benefits plan. Many employees do not view benefits from the monetary standpoint, but employee benefits is, and can be, a very costly part of employee compensation. Let’s take a look at Unit VI and see if we can determine “what’s in it for me” in regards to employee benefits.

Chapter 12 will focus on the key issues associated with employee benefits. As with all aspects of compensation, planning, design, and administration are all important. The cost associated with providing employee benefits is increasing. Many companies try to offer the best benefit plan while keeping it as cost effective as possible. Some companies do consider the needs of the employees when establishing benefit plans. Companies must be able to determine which benefits are necessary in order to retain current employees and attract new ones. Through past experience, it has been proven that when employees are happy with their compensation and benefit package they have a tendency to remain loyal to the organization. It has also been easier to attract and hire qualified applicants by offering great compensation and benefits.

When planning, designing, and administering benefit plans, the organization must also keep in mind those benefits that are mandated/required by state and federal legislation. Companies are required to communicate this information to the employees. Based on past experience, it is important to have a communication board that is visible to all employees and have these mandates posted on the boards providing specific information about each of these mandates. Employee handbooks should also be given to employees. The handbook covers company policies and benefit information. The HR professional should be certain this information is communicated to all employees and that the employees have an understanding of the benefits available to them.

Now that the plan is in place, we can look at the benefits available. Chapter 13 provides an overview of various employee benefits that can be offered by organizations. Keep in mind when reading this chapter that companies do have a right to decide what benefits they will offer. The only benefits they cannot disregard are those which are mandated by the state or federal government.

After reviewing Unit VI, you should have a better appreciation of the benefits offered by your organization, including the following:

 Understanding the planning, design, and administrative process of employee benefits

 Recognizing and being able to discuss those benefits mandated by state and federal legislation

 Having a better understanding of employee benefits and the cost associated with offering benefits

 Understanding the difference between required benefits and miscellaneous benefits.

Let’s explore Chapter 12 and Chapter 13 with an open mind, prepared to gain new insight into employee benefits.

Suggested Reading

Click here to access the Chapter 12 PowerPoint Presentation.

Click here to access a PDF of the presentation.

Click here to access the Chapter 13 PowerPoint Presentation

Click here to access a PDF of the presentation.

Key Terms

1. Benefit Communication

2. Cafeteria-style plan

3. COBRA

4. Cost containment

5. Defined benefit plan

6. Defined contribution plan

7. Employee benefits

8. ERISA

9. Family Medical Leave Act

10. HIPAA

11. HMO/PPO/POS

12. Short- and Long-Term Disability