HumanResourceManagementSixteenthEditionChapter13BenefitsandServicesCopyright?2020,2017,2015PearsonEducation,Inc.AllRightsReservedLearningObjectives(1of2)13.1

Nameanddefineeachofthemainpayfortimenotworkedbenefits.13.2

Describeeachofthemaininsurancebenefits.13.3

Discussthemainretirementbenefits.LearningObjectives(2of2)13.4

Outlinethemainemployees’servicesbenefits.13.5

Explainthemainflexiblebenefitprograms.13.6

Explainhowtousebenefitstoimproveengagement,productivity,andperformance.Introduction:TheBenefitsPictureTodayBenefitstheindirectfinancialandnonfinancialpaymentsemployeesreceiveforcontinuingtheiremploymentwiththecompanyandwhichemployersusetoattract,recognize,andretainworkersEmployeebenefitsaccountforabout31%oftotalcompensationLearningObjective13.1:NameandDefineEachoftheMainPayforTimeNotWorkedBenefitsPayforTimeNotWorkedSupplementalPayBenefitsVeryCostlyIncludeholidays,vacations,juryduty,funeralleave,militaryduty,personaldays,sickleave,sabbaticalleave,maternityleave,andunemploymentinsurancepaymentsforlaid-offorterminatedemployeesUnemploymentInsuranceUnemployedthroughnofaultoftheirownUnemploymenttaxratesarerisingEmployersspendthousandsunnecessarilyVacationandHolidaysAbout90%offull-timeworkersand40%ofpart-timersgetpaidholidaysAverageofeightpaidholidaysoffAverageAmericanworker:9daysvacationafteroneyear14daysvacationafter5years17daysvacationafter10yearsKnowYourEmploymentLaw(1of2)SomeLegalAspectsofVacationsandHolidaysLet’stakealook…SickLeaveProvidespaytoemployeeswhenthey’reoutofworkduetoillnessCostreductiontacticsPooledpaidleaveplans(“banks”)RepurchaseunusedsickleaveatendofyearImprovingPerformance:H

RasaProfitCenterControllingSickLeaveLet’stalkaboutit…KnowYourEmploymentLaw(2of2)LeavesandFamilyandMedicalLeaveActF

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AGuidelinesGivenoemployeealeaveuntilthereasonfortheleaveisclear.ConfirmthelegitimacyofanyF

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Arequest.Useastandardformtorecordboththeemployee’sexpectedreturndate.SeverancePayAone-timeseparationpayment,whenterminatinganemployeeReducingthechancesoflitigationComplywithE

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ASupplementalUnemploymentBenefitsSupplementalunemploymentbenefitsarecashpaymentsthatsupplementtheemployee’sunemploymentcompensation,tohelpthepersonmaintainhisorherstandardoflivingwhileoutofwork.LearningObjective13.2:DescribeEachoftheMainInsuranceBenefitsInsuranceBenefits(1of2)Workers’compensationHealthinsuranceWorker’sCompensationTheincomeandmedicalbenefitsprovidedinwork-relatedaccidentstothevictimsortheirdependents,regardlessoffaultmonetaryormedical,oracombination.DeterminingbenefitsControllingcostsHospitalization,Health,andDisabilityInsuranceCoveragePatientProtectionandAffordableCareActHealthMaintenanceOrganization(H

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O)PreferredProviderOrganization(P

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O)MentalHealthBenefitsPatientProtectionandAffordableCareActof2010andOtherLawsPatientProtectionandAffordableCareActof2010TheConsolidatedOmnibusBudgetReconciliationAct(C

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A)OtherlawsTrendsinEmployerHealth-CareCostControlHealth-carecostscontrolisonebigwayH

RcanimproveprofitsMeasuringandauditinghealthcarecostsOthercost-controloptionsH

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sMakesureemployeesknowthecostsWellnessprogramsClinicalpreventionIncentivesImprovingPerformance:H

RasaProfitCenterTheDoctorIsonthePhoneLet’stalkaboutit…InsuranceBenefits(2of2)Long-termcareSuchasnursingassistanceinoldageLifeinsuranceAccidentaldeathanddismembermentcoverageBenefitsforpart-timeandcontingentworkersLearningObjective13.3:DiscusstheMainRetirementBenefitsRetirementBenefits:SocialSecurityThreetypesofbenefits:RetirementBenefitsSurvivororDeathBenefitsDisabilityMedicareprovideshealthservicestopeopleage65orolderRetirementBenefits:PensionPlansProvideincometoindividualsintheirretirement,andjustoverhalfoffull-timeworkersparticipateinsometypeofpensionplanatworkContributoryversusNon-ContributoryDefinedContributionversusDefinedPortability401(k)andOtherPensionPlans401(k)plansEmployeeauthorizestheemployertodeductasumfromhisorherpaycheckbeforetaxes,andtoinvestitinthebundleofinvestmentsSavingsandThriftCashBalanceplansHybridKnowYourEmploymentLawPensionPlanningandtheLawLet’stakealook…PensionPlanningandtheLawPensionBenefitsGuaranteeCorporation(P

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C)MembershipRequirementsVestingCliffvestingGradedvestingPensionsandEarlyRetirementEarlyretirementwindowOftenage50+Foralimitedtime,theemployeescanretireearly,generallywithacombinationofimprovedorliberalizedpensionbenefitsplusacashpayment.ImprovingPerformanceThroughH

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S:OnlineBenefitsManagementSystemsBenelogicLet’stakealook..TrendsShapingH

R:DigitalandSocialMediaCommunicatingBenefitswithEmployeesLet’stakealook…LearningObjective13.4:OutlinetheMainEmployees’ServicesBenefitsPersonalServicesandFamily-FriendlyBenefitsTheseincludePersonalservices(suchaslegalandpersonalcounseling),“Family-friendly”services(suchaschild-carefacilities)EducationalsubsidiesExecutiveperquisitesPersonalServicesVoluntarybenefitsEmployeeAssistancePrograms(E

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s)Providecounselingandadvisoryservicesforpersonalproblemsthatmayadverselyaffecttheemployee’sworklifeFamily-Friendly(Work-Life)BenefitsChildcareSickchildbenefitsEducationalsubsidiesOtherpersonalservicesbenefitsDiversityCountsDomesticPartnerBenefitsImprovingPerformance:TheStrategicContextClifBarLet’stalkaboutit…ExecutivePerquisitesCompanyplanesLoans/StockoptionsFinancialCounselingRelocationLearningObjective13.5:ExplaintheMainFlexibleBenefitProgramsFlexibleBenefitsProgramsFigure13-4OnePagefromOnlineSurveyofEmployees’BenefitsPreferencesSource:ReprintedwithpermissionfromGrapeVinesolutions.TheCafeteriaApproachTypesofplansFlexiblespendingCoreplusoptionsImprovingPerformance:H

RToolsforLineManagersandSmallBusinessesBenefitsandEmployeeLeasingLet’stalkaboutit…FlexibleWorkSchedulesFlextimeTelecommutingCompressedWorkweekJobShareWorkShareLearningObjective13.6:ExplainHowtoUseBenefitstoImproveEngagement,Productivity,andPe