Managing Human Resources Chapter PowerPoint Presentation by Monica Belcourt, York University and Charlie Cook, The University of West Alabama Employee.

Managing Human ResourcesManaging Human Resources

Chapter

PowerPoint Presentation by Monica Belcourt, York University PowerPoint Presentation by Monica Belcourt, York University and Charlie Cook, The University of West Alabamaand Charlie Cook, The University of West Alabama

Employee BenefitsEmployee Benefits

Copyright © 2011 by Nelson Education Ltd. Copyright © 2011 by Nelson Education Ltd.

Copyright © 2011 by Nelson Education Ltd.

After studying this chapter, you should be able to:1. Describe the characteristics of a sound benefits

program.2. Indicate management concerns about the costs of

employee benefits, and discuss ways to control those costs.

3. Identify and explain the employee benefits required by law.

4. Discuss suggested ways to control the costs of health care programs.

5. Describe benefits that involve payment for time not worked.

11–2

Learning Outcomes


After studying this chapter, you should be able to:

6. Discuss the recent trends in retirement policies and programs.

7. Indicate the major factors involved in managing pension plans.

8. Describe the types of work/life benefits that employers can provide.

11–3

Learning Outcomes (Cont’d)


The Chief Objectives of Benefits ProgramsImprove employee work satisfaction

Meet employee health and security requirements

Attract and motivate employees

Reduce turnover

Maintain a favourable competitive position

11–4


Requirements for a Sound Benefits Program

Strategic Benefits Planning

Allowing for Employee

Involvement

Benefits for a Diverse

Workforce

Providing for

Flexibility

Communicating Employee Benefits

Information

11–5


Providing for Flexibility

Flexible Benefits Plans (Cafeteria Plans) Benefit plans that enable individual employees to choose

the benefits that are best suited to their particular needs.

11–6


Figure 11Figure 11–1 –1 Flexible Benefits Plans: Advantages and DisadvantagesFlexible Benefits Plans: Advantages and Disadvantages

ADVANTAGES

• Employees select benefits to match their individual needs.

• Benefit selections adapt to a constantly changing (diversified) workforce.

• Employees gain greater understanding of the benefits offered to them and the costs incurred.

• Employers maximize the psychological value of their benefits program by paying only for highly desired benefits.

• Employers limit benefit costs by allowing employees to “buy” benefits only up to a maximum (defined) amount.

• Employers gain competitive advantage in the recruiting and retention of employees.

11–7


Figure 11Figure 11–1 –1 Flexible Benefits Plans: Advantages and Disadvantages (cont’d)Flexible Benefits Plans: Advantages and Disadvantages (cont’d)

DISADVANTAGES

• Poor employee benefits selection results in unwanted financial costs.

• There are certain added costs to establishing and maintaining the flexible plan.

• Employees may choose benefits of high use to them that increase employer premium costs.

11–8


Communicating Benefits Information

In-house publications (employee handbooks and organizational newsletters)

Group meeting and training classes

Audiocassettes/videotapes

Bulletin boards

Payroll inserts/pay stub messages

Specialty brochures

Employee self-service systems (ESS)

11–9


Management Concerns

Rising costs of providing benefits Rising costs of providing benefits

Benefits offered by other employeesBenefits offered by other employees

Concerns of ManagementConcerns of Management

Union demands for additional benefitsUnion demands for additional benefits

Tax consequences of benefitsTax consequences of benefits

Benefits coverage for domestic partnersBenefits coverage for domestic partners

11–10


Benefits Mandated By Law

Required By LawRequired By Law DiscretionaryDiscretionary

Health careHealth care

Employment InsuranceEmployment Insurance

Workers’ CompensationWorkers’ Compensation

Payment for time not workedPayment for time not worked

Severance PaySeverance Pay

Canada /Quebec Pension PlansCanada /Quebec Pension Plans

Provincial Hospital and MedicalProvincial Hospital and MedicalServicesServices Life and LT care insuranceLife and LT care insurance

Retirements and pensionsRetirements and pensions

11–11


Canada and Quebec Pension Plans

Covers all employees between ages of 18 and 70.

Used to pay retirement pensions, disability benefits and survivor benfits.

All contributions come from employers and employees

11–12


Employment Insurance

Benefits paid to claimants who are unemployed and actively seeking employment.

11–13


Workers’ Compensation Insurance

Workers’ Compensation Insurance Provincial and territorial insurance (funded by an

employer payroll tax) provided to workers to defray the loss of income and cost of treatment due to work-related injuries or illness.

11–14


Figure 11Figure 11–3 –3 Reducing Workers’ Compensation Costs: Key AreasReducing Workers’ Compensation Costs: Key Areas

1. Perform an audit to assess high-risk areas within a workplace.

2. Prevent injuries by proper ergonomic design of the job and effective assessment of job candidates.

3. Provide quality medical care to injured employees by physicians with experience and preferably with training in occupational health.

4. Reduce litigation by effective communication between the employer and the injured worker.

5. Manage the care of an injured worker from the time of injury until return to work.

6. Keep a partially recovered employee at the work site.

7. Provide extensive worker training in all related health and safety areas.

11–15


Provincial Hospital and Medical Services

Many employers offer third party benefit coverage for additional benefits, beyond provincial health care.

11–16


Discretionary Major Employee Benefits

Health care benefitsPayment for time not workedSeverance payLife insuranceRetirement programs

11–17


Health care benefits

Health care benefits which include the costs of hospitalization, prescription drugs, dental care, optical care, and mental health benefits.

Cost containment.

11–18


Payment for Time Not Worked

Time Not Time Not WorkedWorked

11–19


Retirement ProgramsSilver Handshake

Preretirement Programs

11–20

Retirement

Copyright © 2011 by Nelson Education Ltd. 11–21

Contributory planContributions to a plan are made jointly by employees and employers.

Defined-benefit planThe amount an employee is to receive upon retirement is specifically set forth.

Noncontributory planContributions to a plan are made solely by the employer.

Defined-contribution planThe basis (amount) an employer contributes to the pension fund is specified.

Types of Pension Plans


Federal Regulation of Pension Plans

Vesting

Pension Portablity

11–22


Employee Services: Creating a Work/Life Setting

Employee Assistance Programs (EAPs)

Child and Elder Care

11–23


Benefits

Educational assistance plans

11–24


Figure 11–5 Family-Friendly Benefits: Balancing Work and Home Needs

• Child care/elder care referral services

• Time off for children’s school activities

• Employer-paid onsite or near-site child care facilities

• Flexible work hours scheduling

• Employer-accumulated leave days for dependant care

• Subsidized temporary or emergency dependant care

• Extended leave policies for child/elder care

• Sick-child programs (caregiver on call)

• Work-at-home arrangements/telecommuting

• Partial funding of child care costs

• Customized career paths

11–25


AwardsAwardsAwardsAwards

Other Benefits and Services

Recreational and Recreational and SocialSocial

Recreational and Recreational and SocialSocial

Credit UnionsCredit UnionsCredit UnionsCredit Unions

Food ServicesFood ServicesFood ServicesFood Services

Purchasing Purchasing AssistanceAssistance

Purchasing Purchasing AssistanceAssistance

Transportation Transportation PoolingPooling

Transportation Transportation PoolingPooling

On-Site Health On-Site Health ServicesServices

On-Site Health On-Site Health ServicesServices

Legal ServicesLegal ServicesLegal ServicesLegal Services

Financial Financial PlanningPlanning

Financial Financial PlanningPlanning

Housing and Housing and MovingMoving

Housing and Housing and MovingMoving

11–26

Managing Human Resources Chapter PowerPoint Presentation by Monica Belcourt, York University and Charlie Cook, The University of West Alabama Employee.

Documents

costs of employee benefits

desired benefits

employee benefits information

employee involvement

flexible benefits plans

flexibility flexible

nelson education

benefits of high use