Bài giảng QUản trị nguồn nhân lực part 8 eng

Benefits Indirect Financial Compensation All financial rewards that are not paid directly to the employee... Payment for Time Not Worked - Paid Vacations • Provide workers with opport

Human Resource Management

Session 8 BENEFITS, NONFINANCIAL COMPENSATION, AND OTHER

COMPENSATION ISSUES

Benefits (Indirect Financial

Compensation)

All financial rewards that are not paid directly to

the employee

Payment for Time Not Worked -

Paid Vacations

• Provide workers with opportunity to rest, become

rejuvenated, and more productive

• Encourage employees to remain with the firm

• Increases with seniority

• American workers are giving back 415 million

vacation days a year

Payment for Time Not Worked -

Sick Pay and Paid Time Off

• Many firms allocate each employee a certain number of days of sick leave

• Some managers are very critical of sick leave programs

• Paid time off (PTO) - Certain number of days off provided each year that employees can use

Payment for Time Not Worked -

Sabbaticals

• Temporary leaves of absence from

organization, usually at reduced pay

• Used for years in academic community

• Some companies are now using

• Helps reduce turnover and prevents burnout

Factors Contributing to the High

Cost of Health Care

• Aging population

• Growing demand for medical care

• Increasingly expensive medical

technology

• Inefficient administrative processes

Major Medical Benefits

Plans provide for major medical benefits to

cover extraordinary expenses that result from long-term or serious health problems

Dental and Vision Care

Employers typically pay entire costs for both types of plans except for a

deductible

Life Insurance

Group life insurance

commonly provided benefit to protect

employee’s family in event of death

Retirement Plans

• Defined benefits plans

• Defined contribution plan

-Defined Contribution Plans

• Requires specific contributions by an

employer to a retirement or savings fund

established for the employee

• Has been a shift from defined benefits to

defined contribution pension plans

• Amount of retirement income from a defined contribution plan will depend upon the

Cash Balance Plans

• Plan with elements of both defined benefit and defined contribution plans

• Pension Benefit Guaranty Corporation usually insures cash balance plans

• Employer contributes to each participant’s

account annually, and investment earnings are

at a set amount

Disability Protection

Provides monthly benefit to

employees who, due to illness or injury, are unable

to work for an

Supplemental Unemployment

Benefits (SUB)

• Provide additional income for employees receiving unemployment insurance benefits

• Usually financed by company

• Tend to benefit newer employees

• Financial services

• Legal services

Premium Pay

• Compensation paid to employees for working long periods of time or working under

dangerous or undesirable conditions

dangerous conditions

• Shift Differentials - Pay for inconvenience of working less desirable hours

The Job Itself as a Nonfinancial

Compensation Factor

considerable insight into value of job:

• Is job meaningful and challenging?

• Is there recognition for accomplishment?

• Do I get feeling of achievement from doing job?

• Is there possibility for increased responsibility?

Illustration of Flextime

Flexible Time (Lunch)

Bandwidth

Job Sharing

• Two part-time people split duties of one job in some agreed-on manner and are paid

according to contributions

• Partners must be compatible, have good

communication skills and trust must exist

between job sharers and their manager

computers and other electronic devices that connect them with office

Other Compensation Issues

• Severance pay

• Comparable worth

• Pay secrecy

• Pay compression