Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
CHAPTER 13 PR
OVIDING
EMPLOYEE BENEFIT
SFU
NDAMENTALS OF
HUMAN RESOURCE
MANAGEMENT
5TH ED
ITION
BY R.A. N
OE, J.R. H
OLLENBEC
K, B.
GERHART, AND P.M
. WRIGHT
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Role of Employee Benefits
• Benefits contribute to attracting, retaining, and motivating employees.
• Variety of possible benefits helps employers tailor their compensation to kinds of employees they need.
• Employees have come to expect that benefits will help them maintain economic security.
• Benefits impose significant costs.
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Benefits Required by Law:Social Security
Federal Old Age, Survivors, Disability and Health Insurance (OASDHI) program (Social Security)combines:
Old age (retirement) insurance Survivor’s insurance Disability insurance Hospital insurance (Medicare Part A) Supplementary medical insurance (Medicare Part B)
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Benefits Required by Law:Workers’ Compensation• State programs that provide benefits to
workers who suffer work-related injuries or illnesses, or to their survivors.
• Operate under a principle of no-fault liability:
– Employee does not need to show that the employer was grossly negligent in order to receive compensation.
– Employer is protected from lawsuits.
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Benefits Required by Law:Unpaid Family and Medical LeaveFamily and Medical Leave Act (FMLA) of 1993Requires organizations with 50 or more employees to provide up to 12 weeks of unpaid leave:
After childbirth or adoption To care for a seriously ill family member For an employee’s own serious illness
Employers must guarantee these employees same or comparable job when they return to work.
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Optional Benefits Programs
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Optional Benefits Programs:Group Insurance
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Medical Insurance
Six employer approaches to controlling health care benefits costs:
1. Managed Care2. Health Maintenance Organizations (HMO)3. Preferred Provider Organizations (PPO)4. Flexible Spending Accounts5. Consumer-Driven Health Plans (CDHP)6. Employee Wellness Programs (EWP)
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Optional Benefits Programs:“Family-Friendly” Benefits
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Legal Requirements for Employee Benefits
