dessler_13.ppt

© 2008 Prentice Hall, Inc. © 2008 Prentice Hall, Inc. All rights reserved.All rights reserved.

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

1

Human Resource Human Resource ManagementManagement

ELEVENTH EDITIONELEVENTH EDITION

G A R Y D E S S L E RG A R Y D E S S L E R

Benefits and ServicesBenefits and Services

Chapter Chapter 1313

Part 4 | CompensationPart 4 | Compensation

© 2008 Prentice Hall, Inc. All rights reserved. 13–2

After studying this chapter, you should be able to:

1.1. Name and define each of the main pay for time not Name and define each of the main pay for time not worked benefits.worked benefits.

2.2. Describe each of the main insurance benefits.Describe each of the main insurance benefits.

3.3. Discuss the main retirement benefits.Discuss the main retirement benefits.

4.4. Outline the main employees’ services benefits.Outline the main employees’ services benefits.

5.5. Explain the main flexible benefit programs.Explain the main flexible benefit programs.


BenefitsBenefits

Supplemental Pay

Employee Services

Insurance Benefits

Retirement Benefits

Types of Employee Benefits


Policy Issues in Designing Benefit PackagesPolicy Issues in Designing Benefit Packages

Policy Issues

Who will be covered

Coverage during probation

Degree of employee choice

Which benefits to offer

Whether to include retirees

How to finance benefits

Cost containment procedures

Communicating benefits options


Pay For Time Not WorkedPay For Time Not Worked

Vacations and Holidays

Parental Leave

Supplemental Unemployment

Benefits

Supplemental Pay

Benefits

Unemployment Insurance

Sick Leave

Severance Pay


Insurance BenefitsInsurance Benefits• Workers’ CompensationWorkers’ Compensation

Provides income and medical benefits to work-Provides income and medical benefits to work-related accident victims or their dependents, related accident victims or their dependents, regardless of fault.regardless of fault. Death or disability: a cash benefit based on earnings per Death or disability: a cash benefit based on earnings per

week of employment.week of employment. Specific loss injuries: statutory list of lossesSpecific loss injuries: statutory list of losses

Controlling workers’ compensation costsControlling workers’ compensation costs Screen out accident-prone workers.Screen out accident-prone workers. Make the workplace safer.Make the workplace safer. Thoroughly investigate accident claims.Thoroughly investigate accident claims. Use case management to return injured employees to work Use case management to return injured employees to work

as soon as possible.as soon as possible.


Trends in Health Care Cost ControlsTrends in Health Care Cost Controls

Communication, Involvement, and

Empowerment

Health Savings Accounts

Premiums and Co-Pays

Cost-Control Trends

Prevention Programs

Claim Audits


Other Cost-Control OptionsOther Cost-Control Options

Automating health care plan administration

Defined contribution health care plans

Eliminating retiree health care coverage

Benefits purchasing alliances

Controlling Health Care Costs

Outsourcing health care plan administration


Retirement Benefits (cont’d)Retirement Benefits (cont’d)

Membership Requirements VestingBenefit

FormulaPlan

Funding

Policy Issues In Pension Planning



Defined Benefits Plans

Defined Contribution Plans

Qualified Plans

Nonqualified Plans

Types of Pension Plans



401(k)Plans

Employee Stock

Ownership Plans

(ESOPs)

Savings and Thrift Plans

Types of Defined Contribution

Plans

Deferred Profit-Sharing

Plans

Cash Balance Pension Plans


Personal Services (cont’d)Personal Services (cont’d)

1

Be aware of legal issues.

Ensure professional staffing.

Steps for Launching an EAP Program

Develop a policy statement.

Maintain confidential record-keeping systems.

2

3

4


Flexible Benefits ProgramsFlexible Benefits Programs• Cafeteria (Flexible Benefits) ApproachCafeteria (Flexible Benefits) Approach

Each employee is given a limited benefits fund budget Each employee is given a limited benefits fund budget to spend on preferred benefits.to spend on preferred benefits.

Types of plansTypes of plans Flexible spending accountsFlexible spending accounts Core plus option plansCore plus option plans

• Flexible Work ArrangementsFlexible Work Arrangements Flextime schedulesFlextime schedules Compressed workweek schedulesCompressed workweek schedules Job sharingJob sharing Work sharingWork sharing TelecommutingTelecommuting


K E Y T E R M S

benefitsbenefitssupplemental pay benefitssupplemental pay benefitsunemployment insuranceunemployment insurancesick leavesick leaveseverance payseverance paysupplemental unemployment benefitssupplemental unemployment benefitsworkers’ compensationworkers’ compensationcase managementcase managementhealth maintenance organization (HMO)health maintenance organization (HMO)preferred provider organizations (PPOs)preferred provider organizations (PPOs)group life insurancegroup life insuranceSocial SecuritySocial Securitypension planspension plansdefined benefit pension plandefined benefit pension plandefined contribution pension plandefined contribution pension planportabilityportability401(k) plan401(k) plan

savings and thrift plansavings and thrift plandeferred profit-sharing plandeferred profit-sharing planemployee stock ownership plan (ESOP) employee stock ownership plan (ESOP) cash balance planscash balance plansEmployee Retirement Income Security Act Employee Retirement Income Security Act

(ERISA) (ERISA) Pension Benefits Guarantee Corporation Pension Benefits Guarantee Corporation

(PBGC)(PBGC)vested fundsvested fundsearly retirement windowearly retirement windowemployee assistance programemployee assistance programfamily-friendly benefitsfamily-friendly benefitsflexible benefits plan/cafeteria benefits planflexible benefits plan/cafeteria benefits planflextimeflextimecompressed work weekcompressed work weekjob sharingjob sharingwork sharingwork sharingtelecommutingtelecommuting

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