After reading chapter 12, you should be able to: Discuss the connection between incentive pay and employee performance, describe how organizations recognize individual performance, identify ways to recognize group performance, explain how organizations link pay to their overall performance,...
Trang 1Human Resource Management 11e
Chapter 12 Employee Benefits
Trang 2§ Have become important tools for recruiting and
retention of qualified workers
§ Do not directly affect a worker’s performance, but inadequate benefits lead to employee dissatisfaction
§ Competition for the best employees required
employers to offer creative benefit packages
Introduction
Trang 3To get a taste of this extraordinary time, watch http://www.youtube.com/watch?v=4F4yT0KAMyo
Trang 4approximately 30% of
total compensation
Introduction
Trang 5§ Financed by equal employee and employer
contributions, based on a percentage of earnings
§ Provides income for retirees, disabled workers and surviving dependents
§ Provides some health insurance coverage through Medicare
§ Social Security Administration website: Click here
Legally Required Benefits
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Trang 6§ Funded by employers who pay combined federal and state tax imposed on taxable wage base
§ Tax varies based on organization’s unemployment experience: the more layoffs, the higher the rate
§ Provides employees with some income continuation during periods of involuntary unemployment
§ Typical coverage is for 26 weeks
§ May be extended beyond 26 weeks when unemployment is
high
Legally Required Benefits
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Trang 11Management 11e
Trang 12§ Alternative benefit required by Health Maintenance Act of
1973
§ Broad comprehensive care provided by physicians who are “in network”
§ Employee incurs small co pay
§ Health care choices significantly limited
Major HMOs include:
Voluntary Benefits
Trang 13§ Member health care providers agree to provide services at a fixed fee
Voluntary Benefits
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Trang 14§ Often hire third party to administer
Voluntary Benefits
Trang 15Management 11e
Trang 16§ The Consolidated Omnibus Budget Reconciliation Act (COBRA)
§ Provides for continuation of benefits for up to three years after an employee leaves a job
§ Cost is paid by the employee
Voluntary Benefits
Trang 17§ The Health Insurance Portability and Accountability Act of 1996
§ Imposed on employers and health providers regulations
regarding the confidentiality of employee health information
§ Click here for more information from the U.S. Department of Health and Human Services
Voluntary Benefits
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Trang 18Includes:
Trang 191974
§ Vesting rights – right to pension benefits even if one leaves the company
§ Enables pension rights to be portable
§ Sets up pension benefit guaranty corporation (PBGC)
§ Claims corporate assets to cover inadequately funded pension plans
§ Requires summary plan description (SPD)
Retirement Benefits
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Trang 20§ Plan specifies the dollar benefit workers receive at retirement
§ Usually based on some formula of years of service and average final compensation
§ More common in government and unionized
industries
Retirement Benefits
Trang 21§ Employee and employer may contribute to account based on rules established for contributions
§ Amount of benefits depends on success of account investments
Trang 22Retirement Benefits
Trang 23Management 11e
Trang 24§ Provides salary continuation for:
§ Shortterm disabilities (sick leave)
§ Longterm disabilities (coverage usually effective after 6 months)
Trang 25§ Benefit is usually based on one’s annual rate of pay
§ Supplemental insurance increases coverage to two to fivetimes the employee’s salary
Travel Insurance
§ Life insurance for business travelrelated deaths (not including normal commuting)
Survivor Benefits
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Trang 26Employers often can provide services at no cost or at a significant reduction from the usual cost. May include:
Trang 27An Integrative Perspective on Employee Benefits
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Trang 28§ Under Section I25 of the Internal Revenue Code employees can set aside a designated dollar amount before taxes for
§ Not subject to federal, state, and social security taxes
An Integrative Perspective on Employee Benefits
Trang 29An Integrative Perspective on Employee Benefits
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