HRM 5th chapter 11 employee benefits

Requirements for a Sound Benefits Program Strategic Benefits Planning Allowing for Employee Involvement Benefits for a Diverse Workforce Providing for Flexibility Communicating Employee

PowerPoint Presentation by

Managing Human Resources

Belcourt * Bohlander * Snell 5 th Canadian edition

Employee Benefits

After studying this chapter, you should be able to:

1 Describe the characteristics of a sound benefits

program.

2 Indicate management concerns about the costs of

employee benefits and discuss ways to control those costs.

3 Identify and explain the employee benefits required

Objectives (cont’d)

After studying this chapter, you should be able to:

6 Discuss the recent trends in retirement policies and

programs.

7 Indicate the major factors involved in the

management of pension plans.

8 Describe the types of work/life benefits that

employers may provide.

The Chief Objectives of Benefits Programs

• Improve employee work satisfaction

• Meet employee health and security

Requirements for a Sound Benefits

Program

Strategic Benefits Planning

Allowing for Employee Involvement

Benefits for a Diverse Workforce

Providing for Flexibility

Communicating

Employee Benefits

Information

Providing for Flexibility

• Flexible Benefits Plans (Cafeteria Plans)

 Benefit plans that enable individual employees to

choose the benefits that are best suited to their

particular needs.

 A basic or core benefits package of life and health

insurance, sick leave, and vacation ensures that employees have a minimum level of coverage.

 Employees use “credits” to “buy” whatever other

benefits they need.

Flexible Benefits Plans: Advantages and Disadvantages

ADVANTAGES

• Employees select benefits to match their individual needs.

• Benefit selections adapt to a constantly changing (diversified)

workforce.

• Employees gain greater understanding of the benefits offered

to them and the costs incurred.

• Employers maximize the psychological value of their benefits

program by paying only for highly desired benefits.

• Employers limit benefit costs by allowing employees to “buy”

benefits only up to a maximum (defined) amount.

• Employers gain competitive advantage in the recruiting and

retention of employees.

Figure 11.1

Flexible Benefits Plans: Advantages and Disadvantages (cont’d)

DISADVANTAGES

• Poor employee benefits selection results in unwanted financial

costs.

• There are certain added costs to establishing and maintaining

the flexible plan.

• Employees may choose benefits of high use to them that

increase employer premium costs.

Figure 11.1

Communicating Benefits Information

• In-house publications (employee handbooks and

Highlights in HRM

Crafting an Effective Benefits Communication Program

In building an identity:

• Design materials that are eye-catching and of high interest to employees.

• Develop a graphic logo for all material.

• Identify a theme for the benefits program.

In writing benefits materials:

• Avoid complex language when describing benefits Clear, concise, and

understandable language is a must.

• Provide numerous examples to illustrate benefit specifics.

• Explain all benefits in an open and honest manner Do not attempt to conceal

unpleasant news.

• Explain the purpose behind the benefit and the value of the benefit to employees.

In publicizing benefits information:

• Use all popular employee communication techniques.

• Maintain employee self-service (ESS) technology to disseminate benefits

information and to update employee benefits selections.

• Use voice mail to send benefits information.

• Employ presentation software such as PowerPoint or Lotus Freelance to present

information to groups of employees.

Benefits Issues

Rising costs of providing benefits

Rising costs of providing benefits

Benefits offered by other employees

Benefits offered by other employees

Concerns of Management

Concerns of Management

Union demands for additional benefits

Union demands for additional benefits

Tax consequences of benefits

Tax consequences of benefits

Benefits coverage for domestic partners

Benefits coverage for domestic partners

Types of Employee Benefits

Payment for time not worked

Payment for time not worked

Severance Pay

Severance Pay

Canada /Quebec Pension Plans

Canada /Quebec Pension Plans

Provincial Hospital and Medical

Services

Provincial Hospital and Medical

Services

Life and LT care insurance

Life and LT care insurance

Retirements and pensions

Retirements and pensions

Canada and Quebec Pension Plans

• Covers all employees between ages of 18 and

70.

• Used to pay retirement pensions, disability

benefits and survivor benefits.

• All contributions come from employers and

employees

Employment Insurance

• Benefits paid to claimants who are unemployed

and actively seeking employee.

• Amount paid is determined by the number of

hours of employment in the past year, and the

regional unemployment rate.

• Additional benefits may be extended for

situations involving illness, injury, quarantine,

and for maternity, paternity or adoption leave.

Workers’ Compensation Insurance

• Workers’ Compensation Insurance

 Provincial and territorial insurance (funded by an

employer payroll tax) provided to workers to defray

the loss of income and cost of treatment due to related injuries or illness.

work- Factors influencing the employer’s insurance rate:

 The risk of injury or illness for an industry.

 The company’s frequency and severity of employee

injuries (the company’s experience rating).

Reducing Workers’ Compensation Costs: Key Areas

1 Perform an audit to assess high-risk areas within a

workplace.

2 Prevent injuries by proper ergonomic design of the job and

effective assessment of job candidates.

3 Provide quality medical care to injured employees by

physicians with experience and preferably with training in

occupational health.

4 Reduce litigation by effective communication between the

employer and the injured worker.

5 Manage the care of an injured worker from the injury until

return to work.

6 Provide extensive worker training in all related health and

safety areas.

Figure 11.3

Provincial Hospital and Medical Services

third party benefit coverage for additional benefits, beyond

provincial health care.

Discretionary Major Employee Benefits

• Health care benefits

• Payment for time not worked

• Severance pay

• Life insurance

• Retirement programs

Payment for Time Not Worked

Sick leave

Sick leave

Severance pay

Vacations with pay

Vacations with pay

Time Not Worked

Types of Pension Plans

specifically set forth.

• Defined-contribution

plan

 The basis (amount) an employer contributes to the pension fund is

specified.

Federal Regulation of Pension Plans

• Vesting

 A guarantee of accrued benefits to participants at

retirement age, regardless of their employment status

at that time.

• Pension Portablity

 Employees who leave an organization can leave their funds in their current plan or transfer those funds to a locked-in RRSP or into their new employer’s pension plan.

Employee Services: Creating a Work/Life

Setting

• Employee Assistance Programs (EAPs)

 Services provided by employers to help workers cope with a wide variety of problems that interfere with the way they perform their jobs.

 Typically provide diagnosis, counseling, and referral for advice or treatment for problems related to alcohol or drug abuse, emotional difficulties, and financial or family difficulties.

• Child and Elder Care

 Care provided to a child or an elderly relative by an employee who remains actively at work.

Family-Friendly Benefits: Balancing Work and Home Needs

• Child care/elder care referral services

• Time off for children’s school activities

• Employer-paid onsite or near-site child care facilities

• Flexible work hours scheduling

• Employer-accumulated leave days for dependent care

• Subsidized temporary or emergency dependent care

• Extended leave policies for child/elder care

• Sick-child programs (caregiver on call)

• Work-at-home arrangements/telecommuting

• Partial funding of child care costs

• Customized career paths

Figure 11.5

On-Site Health Services

Legal Services

Legal Services

Financial Planning

Financial Planning

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