HumanResourceManagementSixteenthEditionChapter10ManagingCareersandRetentionCopyright?2020,2017,2015PearsonEducation,Inc.AllRightsReservedLearningObjectives(1of2)10.1

Discusswhatemployersandsupervisorscandotosupportemployees’careerdevelopmentneeds.10.2

Explainwhycareerdevelopmentcanimproveemployeeengagement.10.3

Describeacomprehensiveapproachtoretainingemployees.LearningObjectives(2of2)10.4

Listandbrieflyexplainthemaindecisionsemployersshouldaddressinreachingpromotionandotheremployeelife-cyclecareerdecisions.10.5

Explaineachofthemaingroundsfordismissal.LearningObjective10.1:DiscussWhatEmployersandSupervisorsCanDotoSupportEmployeesCareerDevelopmentNeedsCareerManagementCareerCareerManagementCareerDevelopmentCareerPlanningCareersTodayandthePsychologicalContractCareerstodayReinventourselvesWork-lifebalanceThepsychologicalcontract“anunwrittenagreementthatexistsbetweenemployersandemployees”Employee’sRoleinCareerManagementPrimaryresponsibilityIndividualstrengthsandweaknesseswithoccupationalopportunitiesandthreatsHollandpersonalitytypesEmployer’sRoleinCareerManagementBeforehiring:realisticjobinterviewsPeriodicjobrotationCareerorientedappraisalsEmployer’sCareerManagementMethodsSelf-helpe-learningtools,careerassessmentandfeedback,andon-sitetrainingCareerplanningworkshopsCareercoachesImprovingPerformanceThroughH

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S:IntegratingTalentManagementandCareerSuccessionPlanningIntegratedSoftwareLet’stakealook…DiversityCountsTowardCareerSuccessPeoplewithDisabilitiesDiversityCounts(1of2)Figure10-2CareerGuidelineSuggestionsforThosewithDisabilitiesStrategyKeyImportofStrategyEspousingapositivemind-setanddemonstratingextremepersistenceOvercomeworriesandtocusontasksathandSensitizingpeopletoabilityoverdisability:SignalingabilitybylearningnewskillsSignalingabilitybyhelpingcoworkersthroughnewlygainedskillsSignalingabilitybytryingtoenhanceperformancethroughfeedbackseekingTrouncestereotypesregardingcompetenceDiversityCounts(2of2)Figure10-2

[Continued]StrategyKeyImportofStrategyEngagingindisabilityadvocacy:AwarenessbuildingInfluencingorganizationalpolicymakingwithregardtoaccommodationSensitizeotherstoperformancepotentialofallP

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DandhelpallP

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DperformBuilding,leveraging,andcontributingtorelevantnetworks:FormingnetworkscomprisingP

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DSeekingmentorswhohaveadisabilityServingasrolemodelsormentorstootherP

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DAidgeneraladjustmentandcareergrowthofselfandotherP

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Careermanagementstrategiesofpeoplewithdisabilities.HumanResourceManagement,May-June2014(53)

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p.455-456.ReprintedbypermissionfromJohnWiley&Sons,I

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c.ClearedviaCopyrightClearanceCenter.TheManagerasMentorandCoachDonotunderestimatetheimpactthatasupervisorcanhaveonhisorheremployee’scareerdevelopment.CoachingandMentoringMentoringhavingexperiencedseniorpeopleadvising,counseling,andguidingemployees’longer-termcareerdevelopmentformalorinformalCoachingfocusesonteachingdailytasksthatyoucaneasilyrelearnLearningObjective10.2:ExplainWhyCareerDevelopmentCanImproveEmployeeEngagementEmployeeEngagementGuideforManagersCareermanagementWhyshouldtheybeloyal?Commitment-OrientedcareerdevelopmenteffortsCareer-orientedappraisalsImprovingPerformance:H

RPracticesAroundtheGlobeCareerDevelopmentatMedtronicLet’stalkaboutit…LearningObjective10.3:DescribeaComprehensiveApproachtoRetainingEmployeesManagingEmployeeTurnoverandRetentionTurnoverInvoluntaryVoluntaryRequiresatalentmanagementstrategyImprovingPerformance:H

RasaProfitCenterTurnoverandPerformanceLet’stalkaboutit…AComprehensiveApproachtoRetainingEmployeesExitinterviewsAttitudesurveysOpendoor/hotlinesStayinterviewsRealisticpreviewsTrendsShapingH

R:DigitalandSocialMediaEmployeeRetentionLet’stakealook…JobWithdrawal“actionsintendedtoplacephysicalorpsychologicaldistancebetweenemployeesandtheirworkenvironment.”IncrementalHighcostUnderstandcausesWithdrawal-reducingstrategiesLearningObjective10.4:ListandBrieflyExplaintheMainDecisionsEmployersShouldAddressinReachingPromotionandOtherEmployeeLife-CycleCareerDecisionsEmployeeLife-CycleCareerManagementPromotionsAdvancementstopositionsofincreasedresponsibilityEffectivepromotionstrategyKnowYourEmploymentLaw(1of2)EstablishClearGuidelinesforManagingPromotionsIsseniorityorcompetencetherule?Howshouldwemeasurecompetence?Istheprocessformalorinformal?Vertical,horizontal,orother?Let’stakealook…DiversityCountsTheGenderGapManagingTransfersandRetirementsManagingtransfersMovefromonejobtoanotherManagingretirementsSignificantissueRetirementprogramstepsLearningObjective10.5:ExplainEachoftheMainGroundsforDismissalManagingDismissalsGroundsfordismissalUnsatisfactoryPerformanceMisconductLackofQualificationsfortheJobChangedRequirementsoftheJobInsubordinationFairnessSafeguardsAllowafullexplanationMultistepprocedure/AppealprocessPersonwhodoesthedismissalSeverancepaySeverancePoliciesMedianWeeksofSeverancePaybyJobLevelSeveranceCalculationMethodMedianweeksofseveranceforExecutivesMedianweeksofseveranceforManagersMedianweeksofseveranceforProfessionalsFixed2664VariableAmountbyemploymentTenureblankblankblank1year4223years7555years107710years20121015years261615Maximum392624Source:

“MedianWeeksofSeverancePaybyJobLevel”,in“SeverancePay:CurrentTrendsandPractices,”fromCulpepperCompensationSurveys&Serviceswebsite,July2007.Copyright?2012CulpepperandAssociates,I

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c.,?2012.KnowYourEmploymentLaw(2of2)TerminationatWillLet’stakealook…AvoidingWrongfulDischargeSuitsWrongfulDischargeorwrongfulterminationoccurswhenanemployee’sdismissaldoesnotcomplywiththelaworwiththecontractualarrangementstatedorimpliedbytheemployerWrongfulconstructivedischargeclaimForcedtoquitduetointolerableworkingconditionsSupervisorLiability&SecurityMeasuresSupervisorliabilityPersonallyliableSecuritymeasuresChecklistInformtheI

TdepartmentTheTerminationInterviewandtheExitProcess(1of2)PlantheinterviewGettothepointDescribethesituationListenReviewtheseverancepackageIdentifythenextstepTheTerminationInterviewandtheExitProcess(2of2)OutplacementcounselingExitinterviewTheexitprocessFortheemployeeLayoffs&ThePlantClosingLawLayoffsWhenanemployersendsemployeeshomeduetoalackofworkEffectsTheWorkerAdjustmentandRetrainingNotificationActW

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NAct,ortheplantclosinglawAdjustingtoDownsizingandMergersDownsizing:cutcostsandraiseprofitabilityConsiderations:TherightpeoplearereleasedCompliancewithlawJustandfairSecurityReducinguncertaintyChapter10ReviewWhatyoushouldnowknow….CopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandis

providedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.HumanResourceManagementSixteenthEditionChapter11EstablishingStrategicPayPlansCopyright?2020,2017,2015PearsonEducation,Inc.AllRightsReservedLearningObjectives(1of2)11.1

Listthebasicfactorsdeterminingpayrates.11.2

Defineandgiveanexampleofhowtoconductajobevaluation.11.3

Explainindetailhowtoestablishamarket-competitivepayplan.LearningObjectives(2of2)11.4

Explainhowtopricemanagerialandprofessionaljobs.11.5

Explainthedifferencebetweencompetency-basedandtraditionalpayplans.11.6

Describetheimportanceoftotalrewardsforimprovingemployeeengagement.LearningObjective11.1:ListtheBasicFactorsDeterminingPayRatesBasicFactorsinDeterminingPayRatesEmployeeCompensationDirectfinancialpaymentswages,salaries,incentives,commissions,andbonusesIndirectfinancialpaymentsemployer-paidinsuranceandvacationsAligningTotalRewardswithStrategyAlignedRewardStrategy–

iscreatingacompensationpackagethatproducestheemployeebehaviorsthefirmneedstoachieveitscompetitivestrategy.EquityandItsImpactonPayRatesEquityTheoryofMotivationonceapersonperceivesaninequityatensionordrivewilldevelopthatmotivateshimorhertoreducethetensionandperceivedinequityTypesofequityExternalInternalIndividualProceduralLegalConsiderationsinCompensationDavis-BaconAct(1931)Walsh-HealeyPublicContractAct(1936)Titleofthe1964CivilRightsActOtherImportantLegalConsiderationsinCompensationFairLaborStandardsAct(1938)Exempt/NonexemptInequityandtheminimumwageEqualPayAct(1963)EmployeeRetirementIncomeSecurityAct(1974)Vesting&PortabilityRightsFiduciaryStandardsOtherLegislationAffectingCompensationAgeDiscriminationinEmploymentActAmericanwithDisabilitiesAct(1990)FamilyandMedicalLeaveActExecutiveOrdersWorker’sCompensationLawsSocialSecurityActof1935GarnishmentLawKnowYourEmploymentLaw(1of2)TheWorkdayLet’stakealook…KnowYourEmploymentLaw(2of2)TheIndependentContractorLet’stakealook…UnionInfluencesonCompensationDecisionsNationalLaborRelationsActof1935WagnerActRighttounionizeRighttobargaincollectivelyNationalLaborRelationsBoard(N

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B)PayPolicesTheemployer’scompensationstrategywillmanifestitselfinpaypolicies.GeographyHowtoaccountforgeographicdifferencesincostoflivingImprovingPerformance:TheStrategicContextWegmansFoodMarketsLet’stalkaboutit…ImprovingPerformance:H

RPracticesAroundTheGlobeCompensatingExpatriateEmployeesLet’stalkaboutit…LearningObjective11.2:DefineandGiveanExampleofHowtoConductaJobEvaluationJobEvaluationMethodsJobEvaluationRelativeworkResultsinasalarystructure/hierarchyMarket-BasedApproachconductingformalorinformalsalarysurveystodeterminewhatothersintherelevantlabormarketsarepayingforparticularjobsMarket-competitivepayplanInternalandexternalequityCompensableFactorsCompensableFactorsAfundamental,compensableelementofajob,suchasskill,effort,responsibility,andworkingconditionsEstablishhowjobscompareonetoanotherPreparingfortheJobEvaluationIdentifytheneedGetemployees’cooperationChooseevaluationcommitteePerformtheevaluationBenchmarkjobsJobEvaluationMethods:Ranking(1of2)ObtainjobinformationSelectandgroupjobsSelectcompensablefactorsRankjobsCombineratingsComparecurrentpaywithwhatothersarepayingbasedonsalarysurveysAssignanewpayscaleJobEvaluationMethods:Ranking(2of2)Table11-2JobRankingatJacksonHospitalRankingOrderOurCurrentAnnualPayScaleWhatOthersPay:SalarySurveyPayOurFinalAssignedPay1.Officemanager$43,000$45,000$44,0002.Chiefnurse42,50043,000??42,7503.Bookkeeper34,00036,00035,0004.Nurse32,50033,00032,7505.Cook31,00032,00031,5006.Nurse’saide28,50030,50029,5007.Orderly25,50027,00027,000Note:

Afterranking,itbecomespossibletoslotadditionaljobs(basedonoveralljobdifficulty,forinstance)betweenthosealreadyrankedandtoassigneachanappropriatewagerate.JobEvaluationMethods:JobClassificationFigure11-4ExampleofaGradeDefinitionGradeNatureofAssignmentLevelofResponsibilityG

S-7Performsspecializeddutiesinadefinedfunctionalorprogramareainvolvingawidevarietyofproblemsorsituations;developsinformation,identifiesinterrelationships,andtakesactionsconsistentwithobjectivesofthefunctionorprogramserved.Workisassignedintermsofobjectives,priorities,anddeadlines;theemployeeworksindependentlyinresolvingmostconflicts;completedworkisevaluatedforconformancetopolicy;guidelines,suchasregulations,precedentcases,andpolicystatementsrequireconsiderableinterpretationandadaptation.Source:

From“GradeLevelGuideforClericalandAssistanceWork”fromU.S.OfficeofPersonnelManagement,June1989.JobEvaluationMethods:ThePointMethod&ComputerizedJobEvaluationsThepointmethodAjobevaluationmethodinwhichanumberofcompensablefactorsareidentifiedandthenthedegreetowhicheachofthesefactorsispresentonthejobisdeterminedComputerizedjobevaluationsLearningObjective11.3:ExplaininDetailHowtoEstablishaMarket-CompetitivePayPlanHowtoCreateaMarket-CompetitivePayPlan(1of4)ChooseBenchmarkJobsSelectCompensableFactorsAssignWeightstoCompensableFactorsConvertPercentagestoPointsforEachFactorHowtoCreateaMarket-CompetitivePayPlan(2of4)DefineEachFactor’sDegreesDetermineForEachFactorItsFactorDegrees’PointsReviewJobDescriptionsandJobSpecificationsEvaluatetheJobsHowtoCreateaMarket-CompetitivePayPlan(3of4)DrawtheCurrent(Internal)WageCurveConductaMarketAnalysis:SalarySurveyDrawtheMarket(External)WageCurveCompareandAdjustCurrentandMarketRatesforJobsHowtoCreateaMarket-CompetitivePayPlan(4of4)DevelopPayGradesEstablishRateRangesAddressRemainingJobCorrectOut-of-LineRatesUnderpaid/RedcircleImprovingPerformance:H

RToolsforLineManagersandSmallBusinessesDevelopingaWorkablePayPlanLet’stalkaboutit…LearningObjective11.4:ExplainHowtoPriceManagerialandProfessionalJobsPricingManagerialandProfessionalJobsWhatDeterminesExecutivePayCompensatingExecutivesBasePayShort-termIncentivesLong-termincentivesExecutiveBenefitsandPerksCompensatingProfessionalEmployeesIncompensatingprofessionals,employersshouldfirstensurethatthepersonisactuallya“professional”underthelaw.TheFairLaborStandardsActImprovingPerformanceThroughH

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S:PayrollAdministrationDevelopingaWorkablePayPlanLet’stakealook…LearningObjective11.5:ExplaintheDifferenceBetweenCompetency-BasedandTraditionalPayPlansContemporaryTopicsinCompensationCompetency-basedpayBroadbandingComparableworthBoardoversightofexecutivepayTotalrewardsCompetency-BasedPayCompetenciesaredemonstrablepersonalcharacteristicssuchasknowledge,skills,andpersonalbehaviors.Competency-basedpaymeansthecompanypaysfortheemployee’srange,depth,andtypesofskillsandknowledge,ratherthanforthejobtitleheorsheholds.BroadbandingFigure11-11BroadbandedStructureandHowItRelatestoTraditionalPayGradesandRangesComparableWorthComparableworthreferstotherequirementtopaymenandwomenequalwagesforjobsthataredissimilarbutofcomparablevaluetotheemployer.CountyofWashingtonversus

GuntherDiversityCountsThePayGapBoardOversightofExecutivePayGovernmentregulation/legislationTheSecuritiesandExchangeCommission(S

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C)Dodd-FrankLawTheSarbanes-OxleyActShareholderactivismLearningObjective11.6:DescribetheImportanceofTotalRewardsforImprovingEmployeeEngagementEmployeeEngagementGuideforManagersTotalRewardProgramsTotalRewardandEmployeeEngagementTotalrewardstatementsTrendsShapingH

R:DigitalandSocialMediaRecognitionRewardsLet’stakealook…Chapter11ReviewWhatyoushouldnowknow….CopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandis

providedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.HumanResourceManagementSixteenthEditionChapter12PayforPerformanceandFinancialIncentivesCopyright?2020,2017,2015PearsonEducation,Inc.AllRightsReservedLearningObjectives(1of2)12.1

Explainhowyouwouldapplyfourmotivationtheoriesinformulatinganincentiveplan.12.2

Discussthemainincentivesforindividualemployees.12.3

Discusstheprosandconsofcommissionsversusstraightpayforsalespeople.LearningObjectives(2of2)12.4

Describethemainincentivesformanagersandexecutives.12.5

Nameanddescribethemostpopularorganization-wideincentiveplans.12.6

Explainhowtouseincentivestoimproveemployeeengagement.LearningObjective12.1:ExplainHowYouWouldApplyFourMotivationTheoriesinFormulatinganIncentivePlanMoney’sRoleinMotivationFrederickTaylorPopularizedfinancialincentivesNeedforformulatinga“fairday’swork”SpearheadedthescientificmanagementmovementPopularizedusingincentivepayIncentivePayTerminologyPay-forPerformanceTieemployees’paytotheemployees’performanceVariablePayPerformance-basedincentiveplanLinkingStrategy,Performance,andIncentivePayIncentivepayTyingworkerpaytoperformanceEasiersaidthandoneSketchyresearchManyplansincentivizethewrongbehaviorDon’tmotivateeveryoneMotivationandIncentivesTheoriesthathaverelevancetodesigningincentiveplansMotivatorsandFredrickHerzbergDemotivatorsandEdwardDeciExpectancyTheoryandVictorVroomBehaviorModification/ReinforcementandB.F.SkinnerKnowYourEmploymentLawEmployeeIncentivesandtheLawLet’stakealook…LearningObjective12.2:DiscusstheMainIncentivesforIndividualEmployeesIndividualEmployeeIncentiveandRecognitionProgramsPieceworkEarningstieddirectlytowhattheworkerproducesStraightpieceworkStandardhourplanAdvantagesanddisadvantagesMeritPayasanIncentiveMeritpayasanincentiveBasedonperformanceEvidenceismixedMeritpayoptionsLump-summeritincreasesTiedtoindividualandorganizationalperformanceIncentiveforProfessionalEmployeesMakingincentivepaydecisionsforprofessionalemployeesischallengingDual-careerladdersOnepathformanagersandanotherfortechnicalexpertsNon-FinancialandRecognition-BaseAwardsRecognitionprogramSocialrecognitionprogramPerformancefeedbackQualitativeinformationQuantitativeinformationTrendsShapingH

R:DigitalandSocialMediaRecognitionProgramsLet’stakealook…ImprovingPerformance:H

RToolsforLineManagersandSmallBusinessesFinancialIncentivesforMotivationLet’stalkaboutit…ListofRecognitionFigure12-1SocialRecognitionandRelatedPositiveReinforcementManagersCanUseChallengingworkassignmentsFreedomtochooseownworkactivityHavingfunbuiltintoworkMoreofpreferredtaskRoleasboss’sstand-inwhenheorsheisawayRoleinpresentationstotopmanagementJobrotationEncouragementoflearningandcontinuousimprovementBeingprovidedwithampleencouragementBeingallowedtosetowngoalsComplimentsExpressionofappreciationinfrontofothersNoteofthanksEmployee-of-the-monthawardSpecialcommendationBiggerdeskBiggerofficeorcubicleSource:BasedonBobNelson,1001WaystoRewardEmployees(NewYork:WorkmanPub,1994),page19;SunnyC.L.FongandMargaretA.Shaffer,"TheDimensionalityandDeterminantsofPaySatisfaction:ACross-CulturalInvestigationofaGroupIncentivePlan,"InternationalJournalofHumanResourceManagement14,no.4(June2003),page559(22).JobDesignCansignificantlyimpactemployeemotivationandretentionPrimarydriverofemployeeengagementUsefulpartofanemployer’stotalrewardsprogramImprovingPerformance:TheStrategicContextTheFast-FoodChainLet’stalkaboutit…LearningObjective12.3:DiscusstheProsandConsofCommissionsVersusStraightPayforSalespeopleIncentivesforSalespeopleAlign:howtheymeasureandrewardtheirsalespeoplewiththeirfirms’strategicgoals.TypesofSalesIncentivePlansSalaryplanWhenthemaintaskinvolvesprospectingoraccountservingCommissionplanPaysonlyforresultsCombinationplan60-70%basesalarywith30-40%incentiveMaximizingSalesForceResultsInsettingsalesquotasandcommissionrates,thegoalistomotivatesalesactivitybutavoidexcessivecommissionsSetEffectiveQuotasDistinguishAmongPerformersEnterpriseIncentiveManagement(E

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M)SalesIncentivesinActionAcarsalesperson’scommissionLet’stakealook...LearningObjective12.4:DescribetheMainIncentivesforManagersandExecutivesIncentivesforManagersandExecutivesManagersplayacrucialroleindivisionalandcompany-wideprofitability,andemployersthereforeputconsiderablethoughtintohowtorewardthem.Mostmanagersgetshort-termandlong-termincentivesinadditiontosalary.Short-termIncentivesLong-termIncentivesStrategyandtheExecutive’sLong-TermandTotalRewardsPackage(1of4)Sarbanes-OxleyActAffectshowemployersformulatetheirexecutiveincentiveprogramsPersonalliabilityStrategyandtheExecutive’sLong-TermandTotalRewardsPackage(2of4)Short-termincentivesandtheannualbonusEligibilityFundsizeIndividualawardsStrategyandtheExecutive’sLong-TermandTotalRewardsPackage(3of4)Long-termincentivesStockoptionsrighttopurchaseaspecificnumberofsharesofcompanystockataspecificpriceduringaspecificperiodStrategyandtheExecutive’sLong-TermandTotalRewardsPackage(4of4)PotentialProblemsShorttermismLackofrangeEthics“Peopleputtheireffortswheretheyknowthey’llberewarded.”ImprovingPerformance:H

RPracticesAroundtheGlobeInternationalH

R–StockoptionsLet’stalkaboutit…LearningObjective12.5:NameandDescribetheMostPopularOrganization-WideIncentivePlansTeamandOrganization-WideIncentivePlansHowtoDesignTeamIncentivesPayincentivestotheteambasedontheteam’sperformanceEvidence-BasedH

R:InequitiesThatUndercutTeamIncentivesOftencounterproductiveOrganization-WideIncentivePlansProfit-sharingplansScanlonplansOthergainsharingplansAt-RiskpayplansEmployeeStockOwnershipPlans(E

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Ps)Broad-basedstockoptionsIncentivePlansinPractice:NucorEmployeescanearnbonusesof100%ormoreofbasesalary,andAllNucoremployeesparticipateinoneoffourperformance-basedincentiveplans.LearningObjective12.6:ExplainHowtoUseIncentivestoImproveEmployeeEngagementEmployeeEngagementGuideforManagersMakeimprovingemployeeengagementaformaltargetofyourcompensationplanAppraiseandincentivizeyoursupervisorspartlybasedonwhethertheytakestepstoimprovetheirsubordinates’engagementLetemployeesparticipateindevisingthecompensationplanChapter12ReviewWhatyoushouldnowknow….CopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandis

providedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.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,whenterminatinganemployeeReducingthechancesoflitigationComplywith