Benefits and services
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This document discusses various types of benefits and services that companies provide to employees. It covers indirect financial payments like paid time off, insurance benefits, retirement benefits, and services. Specific benefits mentioned include sick leave, health insurance, pensions, childcare, flextime, telecommuting, and more. It also addresses issues around developing a benefits plan such as costs, eligibility, communication. The benefits discussed aim to attract, retain and reward employees while controlling costs for the company.
Benefits and services
- 1. HUMAN RESOURCE MANAGEMENT Benefits and Services
- 2. Benefits Benefits • Indirect financial and nonfinancial payments employees receive for continuing their employment with the company.
- 3. Types of employee benefit plans Supplemental pay: sick leave and vacation pay Insurance: workers’ compensation Retirement: Pensions Employee services: child- care facilities
- 4. Types of Employee Benefits Pay for time not worked Insurance benefits Retirement benefits Services
- 5. Issues in Developing Benefits Plans Benefits to be offered. Coverage of retirees in the plan Denial of benefits to employees during initial “probationary” periods Financing of benefits. Benefit choices to give employees. Cost containment procedures to use. Communicating benefits options to employees.
- 6. 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. • Payroll tax on employers 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 vacation days varies by employer. • Number of holidays varies by employer. • Premium pay for work on holidays.
- 7. 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 leave within a one-year period • Employees must take unused paid leave first. • Employees on leave retain their health benefits. • Employees have the right to return to their job or equivalent position.
- 8. Pay for Time Not Worked (cont’d) Severance pay(separation pay ) • A one-time payment when terminating an employee. • Reasons for granting severance pay: • Acts as a humanitarian gesture and good public relations. • Reflect employee’s two week quit notice. • Avoids litigation from disgruntled former employees. • Meets Worker Adjustment and Retraining Notification (“plant closing”) Act requirements. • Reassures employees who stay on after the employer downsizes its workforce of employer’s good intentions.
- 9. Pay for Time Not Worked (cont’d) Supplemental unemployment benefits (SUB) • Payments that supplement the laid-off or for employee’s unemployment compensation. • The employer makes contributions to a reserve fund from which SUB payments are made to employees for the time the employee is out of work due to layoffs, reduced workweeks, or relocations. • SUB payments are considered previously earned compensation for unemployment calculation purposes.
- 10. 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 worker 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.
- 11. Insurance Benefits (cont’d) Hospitalization, health, and disability insurance Provide for loss of income protection and group-rate coverage of basic and major medical expenses for off-the-job accidents and illnesses • Accidental death and dismemberment • Disability insurance
- 12. Insurance Benefits (cont’d) Health maintenance organization (HMO) • A medical organization consisting of specialists operating out of a community-based health care center. • Provides routine medical services to employees who pay a nominal fee. • Receives a fixed annual contract fee per employee from the employer (or employer and employee), regardless of whether it provides that person with service.
- 13. Other Cost-Saving Strategies Wellness programs Disease management Absence management On-site primary care
- 14. Retirement Benefits (cont’d) Types of pension plans Contributory: employees contribute to the plan. Noncontributory plans: employer makes all contributions to the plan. Qualified plans: plans that meet requirements for tax benefits for employer contributions. Nonqualified plans: plans not meeting requirements for favorable tax treatment. ETC
- 15. TEA BREAK
- 16. Personal Services Credit unions Separate businesses established with the employer’s assistance to help employees with their borrowing and saving needs. Employee assistance programs (EAPs) Provide counseling and advisory services: Personal legal and financial services Child and elder care referrals Adoption assistance Mental health counseling Life event planning
- 17. Employee Assistance Programs Key steps for launching a successful EAP program include: Develop a policy statement. Ensure professional staffing. Maintain confidential record-keeping systems. Be aware of legal issues.
- 18. Family-Friendly Benefits On-site or subsidized child care Elder care Fitness and medical facilities Food services Flexible work scheduling Telecommuting Educational subsidies Sabbaticals Loan programs for home office equipment Stock options Concierge services Trauma counseling
- 19. Executive Perquisites Management loans Golden parachutes Financial counseling Relocation benefits Sabbaticals Severance pay Out placement assistance Company cars Chauffeured limousines Security systems
- 20. Executive Perquisites cont’ Company planes and yachts Executive dining rooms Physical fitness programs Legal services Tax assistance Expense accounts Club memberships Season tickets Credit cards Children’s education
- 21. Flexible Benefits Programs The cafeteria (flexible benefits) approach • Each employee is given a benefits fund budget to spend on the benefits he or she prefers. • The fund limits the total cost for each benefits package. Flexible spending accounts • Enable employees to pay for medical and other expenses with pretax dollars by depositing funds in their accounts from payroll deductions.
- 22. Flexible Work Arrangements Flextime A plan whereby employees’ workdays are built around a core of mid-day hours when all workers are required to be present. Workers can arrange their own starting and stopping hours before and after the core period. Positive effects on employee productivity, job satisfaction, satisfaction with work schedule, and employee absenteeism. Positive effect on absenteeism was much greater than on productivity.
- 23. Flexible Work Arrangements (cont’d) • Increase productivity • Less disruption from shift changes • Longer time-off-work periods • Reduced absenteeism • Longer workdays; fewer workdays: • Four-day workweeks, with four 10- hour days. • Two days on, two days off, three days on, then two days off, two days on, and so forth. • Three 12-hour shifts, and then off for the next four days. Compressed workweeks
- 24. Other Flexible Work Arrangements Job sharing • Allowing two or more people to share a single full-time job. Work sharing • A temporary reduction in work hours by a group of employees during economic downturns as a way to prevent layoffs. Telecommuting • Employees work at home using telephones and the Internet to transmit letters, data, and completed work to the home office.
- 33. The End