Group Assignment • • • • • Students will select an HR Topic/Chapter to extend your knowledge and understanding of the specific area to present to the class. Groups consisting of five members (we will finalize group sizes when we are in class), will be required to examine research articles related to the specific chapter they are sharing and summarize this information for the class. Groups will be established the opening day and presentations will be made through google slides or Microsoft Power Point with voice overs. Articles must have been published within the last five years. Further details will be posted in My Blackboard along with Marking Guide. 1 Categories Summarization/review of relevant information of the core HR concept from the chapter. Articles selected represent the outlined core HR concept from the specific chapter. Level 1 Level 2 Level 3 Summary of relevant Summary of relevant Summary of relevant information of the core information of the core information of the core HR HR concept is HR concept is concept is completed with completed with limited completed with some considerable effectiveness effectiveness effectiveness communicates for communicates for communicates for Assessment Rubric for Group Assignment different audiences different audiences different audiences and and purposes with and purposes with purposes with limited effectiveness some effectiveness considerable effectiveness Level 4 Summary of relevant information of the core HR concept is completed with a high degree of effectiveness communicates for different audiences and purposes with a high degree of effectiveness Thinking Categories Insightful, creative, and original thinking in overall analysis of scholarly articles. Comparison of scholarly articles verses information provided from chapters. Level 1 Level 2 Insightful, creative, and original thinking is limited Comparison of information is limited. Insightful, creative, and original thinking is somewhat limited Comparison of information is somewhat limited. Level 3 Considerable degree of Insightful, creative, and original thinking Considerable understanding in comparison of information. Level 4 High degree of Insightful, creative, and original thinking High degree of understanding in comparison of information. Communication Categories Expression and organization of ideas, including effective time management and alignment between team members. Communication and purposes (e.g., use of appropriate style, voice, point of view) in written and media forms. Use of conventions (e.g., grammar, spelling, punctuation, usage), vocabulary, and terminology of the discipline in oral, graphic, written forms, and media forms Consistent use of inclusive and precise language Level 1 Level 2 express and organize ideas and information with limited effectiveness communicates with limited effectiveness express and organize ideas and information with some effectiveness communicates with some effectiveness uses conventions, vocabulary, and terminology of the discipline with limited effectiveness uses conventions, vocabulary, and terminology of the discipline with some effectiveness lacks creativity Inclusive or precise language not evident occasional use of inclusive or precise language Level 3 Level 4 express and organize ideas and information with considerable effectiveness communicates with considerable effectiveness uses conventions, vocabulary, and terminology of the discipline with considerable effectiveness consistent use of inclusive or precise language express and organize ideas and information with a high degree of effectiveness Level 3 Level 4 communicates with a high degree of effectiveness uses conventions, vocabulary, and terminology of the discipline with a high degree of effectiveness consistent use of inclusive and precise language Application Categories Level 1 Level 2 Reflection, implications, and extension on this information affects the work of an HR professional now and in the future. Presentation style and engagement of learners. HR reflections are addressed with limited effectiveness HR reflections are addressed with some effectiveness Presentation style is limited in effectiveness. Presentation style is somewhat limited in effectiveness. HR reflections are addressed with considerable effectiveness Considerable effectiveness in presentation style with HR reflections are addressed with a high degree 2of effectiveness Presentation style demonstrates high degree of effectiveness with good CHAPTER 11 Employee Benefits 11-3 Learning Outcomes LO1 Describe key aspects of the strategic benefits planning process. LO2 Discuss the employee benefits required by law. LO3 Describe key discretionary employee benefits. LO4 Discuss the types of retirement programs and the major factors involved in managing pension plans. LO5 Describe the types of work-life benefits employers may provide. 11-4 Managing Employee Benefits Programs The COVID-19 pandemic has put employee benefits in a new spotlight for Canadian employees. The crisis has highlighted gaps in employee benefits and how employees perceive their value. Employers are looking for better employee benefits such as paid time off, employee assistance programs (EAPs), and mental health and wellness benefits. 11-5 Managing Employee Benefits Programs Minds-on (with an elbow partner): What type of benefits are you aware of and what type of benefits do you think would enhance your desire to work for a specific company? 11-6 Elements of an Effective Benefits Program Employee benefits are a type of indirect compensation designed to improve the quality of employees' work and personal lives. Benefits account for a sizable portion of total payroll costs. The effectiveness of a benefits program is determined by two factors: (1) the selection of benefits that address critical employee needs while promoting strategic organizational goals, and (2) the effective administration of benefits programs. 11-7 Strategic Benefits Planning – 1 Key objectives of most benefits programs: improve employee work satisfaction meet employee health and security requirements attract and motivate employees retain top-performing employees maintain a favourable competitive position 11-8 Strategic Benefits Planning – 2 Allowing for Employee Involvement Need should be determined through consultation with employees (committees, opinion surveys, focus groups, employee participation, websites). Benefits for a Diverse Workforce Must reflect social changes, especially changes in the diversity and lifestyles of the workforce; must develop new types of benefits to meet shifting needs. 11-9 Strategic Benefits Planning – 3 A basic or core benefits package of life and health insurance, sick leave, and vacation ensures that employees have a minimum level of coverage. Flexible benefits plans (cafeteria plans) Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs Employees use credits to “buy” whatever other benefits they need. 11-10 Figure 11.1 Flexible Benefits Plans: Advantages and Disadvantages 11-11 Communicating Employee Benefits Information Methods to Communicate Benefits to Employees In-house publications (handbooks and newsletters) Group meeting and training classes Online modules (self-service) Bulletin boards Payroll inserts and pay stub messages Specialty brochures hotlines Multiple media techniques 11-12 Figure 11.2 Communicating Benefits a Part of Total Rewards 11-13 HRIS and Employee Benefits Benefits of an HRIS: Reduced costs Increased efficiencies Accuracy Once operational, online systems are easy and inexpensive to adapt to employer and employee demands. 11-14 Concerns of Management Employers are concerned about the rising cost of healthcare benefits, which must strike a balance between providing quality benefits and keeping costs under control. As a result of COVID-19, there has been a recent shift in benefit planning. Cost Containment Strategies: Contribution changes (e.g., increase deductibles) Dollar limits Coverage changes Benefit caps Use of preferred providers 11-15 Employee Benefits Required by Law Canada and Quebec Pension Plans (CPP/QPP) Employment Insurance (EI) benefits are payable to claimants who are unemployed and are actively seeking employment Workers’ Compensation Insurance cover almost all Canadian employees between the ages of 18 and 70 Insurance provided to workers to defray the loss of income and cost of treatment resulting from work-related injuries or illness Provincial hospital and medical services 11-16 Figure 11.3 Reducing Workers’ Compensation Costs: Key Areas 11-17 Discretionary Major Employee Benefits Other benefits offered by employers include: Healthcare Dental, optical, mental health benefits Payment Life for time not worked insurance Retirement Pension Copyright © 2023 by Cengage Canada plans 11-18 Healthcare Benefits Healthcare benefits are receiving the most attention today, owing to sharply rising costs and employee concerns. Previously, health insurance plans only covered medical, surgical, and hospital expenses. Employers are under increasing pressure to include prescription drugs, as well as dental, optical, and mental health benefits, in the benefits packages. Drugs are now the second-largest source of health-care spending, trailing only hospitalization. 19 Figure 11.4 Cost Containment Strategies 11-20 Payment for Time Not Worked – 1 Includes statutory holiday pay and vacation pay; time off for bereavement, jury duty, and military duty; rest periods and coffee breaks; and maternity/paternity benefits (which usually involve some form of salary continuance). Vacations with pay eligibility varies by industry, locale, and size of the organization Paid holidays hourly and salaried workers can expect to be paid for statutory holidays as designated by each province 11-21 Payment for Time Not Worked – 2 Sick leave employees who cannot work because of illness or injury are compensated in various ways Severance pay a lump-sum payment given to terminated employees by an employer at the time of an employerinitiated termination 11-22 Life Insurance Group life insurance is the benefit most commonly provided by an employer. The purpose is to provide financial security to the dependents of the employee in case of his or her death. 23 Retirement Programs Employers emphasize the retirement benefits that can be expected after a certain number of years of employment when persuading job applicants to work for them. Retirement Policies To avoid making layoffs and to reduce salary and benefits costs, employers often encourage early retirement. silver handshake An early retirement incentive in the form of increased pension benefits for several years or a cash bonus 11-24 Pension Plans – 1 Types of Pension Plans Categorized in two ways: 1. according to contributions made by the employer 2. according to the amount of pension benefits to be paid Contributory plan: contributions to a pension plan are made jointly by employees and employers. Non-contributory plan: contributions are made solely by the employer. Most plans in privately held organizations are contributory. 11-25 Pension Plans – 2 Types of Pension Plans (concluded): When pension plans are classified by the amount of pension benefits to be paid, there are two types: defined-benefit plan (DB) A pension plan in which the amount an employee is to receive on retirement is specifically set forth defined- contribution plan (DC) A pension plan that establishes the basis on which an employer will contribute to the pension fund 11-26 Figure 11.5 Comparing Defined Benefit and Defined Contribution Plans 11-27 Pension Plans – 3 Federal regulation of pension plans: Vesting A guarantee of accrued benefits to participants at retirement age, regardless of their employment status at the time Pension portability Unions encourage multi-employer plans. According to a collective agreement, these plans cover the employees of two or more unrelated organizations. Pension funds Can be administered through a trusted plan or through an insured one. 11-28 Employee Services: Creating a Work–Life Setting Employee services, like other benefits, are paid for by the employer. Creating a Family-Friendly Setting Employers are increasingly providing a variety of services to make working life more enjoyable and to improve employees' well-being. Employers benefit by attracting good workers and by reducing the various interruptions that affect workplace productivity. 11-29 Employee Assistance Programs Organizations have developed employee assistance programs (EAPs) to assist workers in dealing with a wide range of issues that interfere with their job performance. Services provided by employers to help workers cope with a wide variety of problems that interfere with the way they perform their jobs. An EAP typically provides alcohol or drug problems, emotional problems, and financial or family crises with diagnosis, counselling, and referral services. 11-30 Childcare and Eldercare Eldercare Care provided to an elderly relative by an employee who remains actively at work About 32 percent of Canadians have eldercare responsibilities. Employees spend an average of 23 hours each month on eldercare. 11-31 Employee Benefits as Employer Branding Workplace benefits are emerging as a key differentiator for job applicants as employers compete for top talent. According to a recent survey, nearly half of all job seekers say the most difficult barrier to changing jobs was not knowing what it was like to work somewhere. Salary and benefits are among the most important factors to consider when considering employment with an organization. 11-32 Activity 1: Choosing Benefits Some education institutions offer benefits to students subsidized by a student levy. In groups, discuss what benefits students would appreciate being offered by their institution. How have different generations focused their attention on various benefit options? 11-33 Activity 2: Benefit Plans Small business owners cannot compete for employees based on their benefits plans. Larger companies offer more benefits. List the mandatory benefits that small businesses must provide to employees. Discuss and rank order some other benefits that would be most attractive to employees in order to attract and retain them. 11-34