Post on 27-Dec-2015
transcript
DeCenzo and Robbins HRM 7th Edition
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CHAPTER 12 TOPICS:
1: Goals of employee benefits 2: Legally required benefits 3: Health insurance options 4: ERISA 5: Retirement programs 6: Vacation benefits 7: Disability insurance 8: Family-friendly benefits 9: Flexible benefits
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1: WHY EMPLOYEE BENEFITS??
Necessary part of compensation program
Attract and retain workers
Don’t affect performance
Workforce demographics
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1: COSTS OF PROVIDING EMPLOYEE BENEFITS
40% more for payroll
Most increases due to health insurance premiums
FlexibleNegotiable when
hired
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1: WHAT DID YOU FIND IN YOUR SURVEY?
What benefits were chosen?
Is there a difference by age group?
Can you explain the differences?
Are these current benefits issues in your text?
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1: CURRENT BENEFITS ISSUES
Domestic partner benefits
Dual career familiesSomething of value
for everyoneLegally requiredDifferentiate
workplace for desired employees
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2: LEGALLY REQUIRED BENEFITS
Social SecurityUnemployment
CompensationWorker’s
CompensationFamily and Medical
Leave Act
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2: SOCIAL SECURITY
Retirement, disability, survivor
Paid by government
Health insurance through Medicare
Payroll deduction (12.4%)
AND….
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2: SOCIAL SECURITY
Eligibility after 40 quarters
Age 65 >Bankrupt by
2037???
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2: UNEMPLOYMENT COMPENSATION
Without a jobRegistered for
available workWorked a minimum
number of weeksPurpose - no fault
(layoff, plant closing)
AND….
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2: UNEMPLOYMENT COMPENSATION
Funds from state and federal tax
$56 per employee with guidelines
26 weeks
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2: WORKER’S COMPENSATION
Job-related endeavorsComprehensive
disability coverageLiability with
companyCost born by
organizationMedical costs
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3: HEALTH INSURANCE
Traditional Health Insurance
Health Maintenance Organization
Preferred Provider Organizations
Employee-Operated Coverage
COBRA
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3: TRADITIONAL HEALTH INSURANCE
ExpensiveMost flexibleComprehensiveBlue Cross -
hospitalBlue Shield -
provider
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3: HEALTH MAINTENANCE ORGANIZATION
Preventive careControlled costsCare limited to
designated service center
Choices limited
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3: PREFERRED PROVIDER ORGANIZATION
Gatekeeper for utilization review
Referral requiredCost controlledChoices
constrained
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3: EMPLOYER OPERATED COVERAGE
Third party administrator (TPA)
Voluntary employees’ beneficiary association (VEBA)
Employer established trust fund
Reduces health insurance costs
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3: COBRA
Consolidated Omnibus Budget Reconciliation Act
Provides insurance after employment ends for 18 months
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4: ERISA
Employment Retirement Income Security Act
Protect employee benefits programs
Vesting rightsPension Benefits
Guaranty CorporationSummary Plan
Description
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5: RETIREMENT PROGRAMS
Defined Benefits PlanDefined Contribution
Plans Money Purchase
Pension Plan Profit-Sharing Plan Individual Retirement
Account Roth IRA AND….
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5: RETIREMENT PROGRAMS
More Defined Contribution Plans 401(k) 403(b) Keough (PAYSOP ESOP TRASOP
– See Exhibit 12-4
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6: PAID TIME OFF - VACATION
Length of service Job classificationU.S. average 15 to 20
daysMany industrialized
countries 30 daysSell back to companyTime to recharge and
renew
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6: PAID TIME OFF - HOLIDAY
US - 10 daysAbout averageMexico - 19 days
Sick leave - often included with vacation and holiday “bank”
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7: PAID TIME OFF - DISABILITY INSURANCE
Short term Replacement
income for time not worked
Sick leave45% used for illnessUse it or lost itWell pay
AND….
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7 PAID TIME OFF - DISABILITY INSURANCE
Long term After short term
coverage has expired 6 months Temporary < 24
months Permanent - unable
to work in any occupation
60% income
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7: SURVIVOR BENEFITS
Group Term Life Insurance
Travel Insurance
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8: FAMILY-FRIENDLY BENEFITS
CAFETERIA-STYLE CHOICES, SUCH AS
FlextimeChildcareEldercareFlexible spending
accountsAND…
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8: FAMILY-FRIENDLY BENEFITS
Part-time employment
TelecommutingAdoption benefitsParental leave
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9: FLEXIBLE SPENDING ACCOUNTS
Pre-tax set asideSpecific items,
such as Dental Childcare Insurance
$5000Use it or lose it
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9: MODULAR PLANS
Fixed option combinations
Choose best for you
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9: CORE PLUS OPTIONS
Required base (core) Vacation 40-1(k) Disability
Choice of additional Health Additional vacation Tuition Flexible spending
accounts
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REVIEW CHAPTER 12
Name a legally required benefit.
What benefits are you going to ask about before you take a job?
AND….
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REVIEW CHAPTER 12
Remember these terms?
Vesting ERISA COBRA HMO PPO ESOP
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QUICK: REVIEW CHAPTER 12
ANSWER THESE QUESTIONS ON A SHEET OF PAPER. 1. THE MOST IMPORTANT THING WE DID IN
CLASS TODAY _______.2. I STILL HAVE QUESTIONS ABOUT___. 3. THE BEST THING ABOUT CLASS TODAY
WAS _______________.4. DON’T DO ____________ ANYMORE.
• TURN THEM IN, PLEASE. NO NAMES. WE’LL TALK NEXT CLASS SESSION
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PREVIEW: CHAPTER 13
Find out when your employer had the most recent workplace injury. What was it?
From the news, bring a report about a workplace injury to the next class session.
Write up their responses for 1 extra point on your final grade.
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Exhibit 12-1: Major Employee Benefits Offered (percent of employers participating)
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Exhibit 12-2: Sample Health Maintenance Organization Coverage
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Exhibit 12-3: Sample Preferred Provider Organization (Point of Service) Coverage