Human Resource Management Seventeenth Edition Chapter 13 Benefits and Services Copyright © 2024 Pearson Education, Inc. All Rights Reserved Learning Objectives (1 of 2) 13.1 Name and define each of the main pay for time not worked benefits. 13.2 Describe each of the main insurance benefits. 13.3 Discuss the main retirement benefits. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Learning Objectives (2 of 2) 13.4 Outline the main employees’ services benefits. 13.5 Explain the main flexible benefit programs. 13.6 Explain how to use benefits to improve engagement, productivity, and performance. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Introduction: The Benefits Picture Today • Benefits – The indirect financial and nonfinancial payments employees receive for continuing their employment with the company and which employers use to attract, recognize, and retain workers – Employee benefits account for about 31% of total compensation Copyright © 2024 Pearson Education, Inc. All Rights Reserved Learning Objective 13.1: Name and Define Each of the Main Pay for Time Not Worked Benefits. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Pay for Time Not Worked • Very costly • Supplemental pay benefits • Include holidays, vacations, jury duty, funeral leave, military duty, personal days, sick leave, sabbatical leave, maternity leave, and unemployment insurance payments for laid-off or terminated employees Copyright © 2024 Pearson Education, Inc. All Rights Reserved Unemployment Insurance • Unemployment tax rates are rising • Unemployed through no fault of their own • Employers spend thousands unnecessarily Copyright © 2024 Pearson Education, Inc. All Rights Reserved Vacation and Holidays • About 79% of full-time workers and 40% of part-timers get paid holidays • Average of eight paid holidays off • Average American worker: – 9 days vacation after 1 year – 14 days vacation after 5 years – 17 days vacation after 10 years Copyright © 2024 Pearson Education, Inc. All Rights Reserved Know Your Employment Law (1 of 3) Vacations Let’s take a look… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Sick Leave • Provides pay to employees when they’re out of work due to illness • Cost reduction tactics – Pooled paid leave plans (“banks”) – Repurchase unused sick leave at end of year Copyright © 2024 Pearson Education, Inc. All Rights Reserved HR as a Profit Center (1 of 2) Controlling Sick Leave Let’s talk about it… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Know Your Employment Law (2 of 3) The Family and Medical Leave Act Let’s talk about it… Copyright © 2024 Pearson Education, Inc. All Rights Reserved FMLA Guidelines • Give no employee a leave until the reason for the leave is clear. • Confirm the legitimacy of any FMLA request. • Use a standard form to record both the employee’s expected return date. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Severance Pay • A one-time separation payment, when terminating an employee – Reducing the chances of litigation – Reassures employees who stay – Comply with ERISA Copyright © 2024 Pearson Education, Inc. All Rights Reserved Supplemental Unemployment Benefits • Supplemental unemployment benefits are cash payments that supplement the employee’s unemployment compensation, to help the person maintain his or her standard of living while out of work. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Learning Objective 13.2: Describe Each of the Main Insurance Benefits. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Insurance Benefits (1 of 2) • Workers’ compensation • Hospitalization, health, and disability insurance Copyright © 2024 Pearson Education, Inc. All Rights Reserved Worker’s Compensation • The income and medical benefits provided in workrelated accidents to the victims or their dependents, regardless of fault – Monetary or medical, or a combination • Determining benefits • Controlling costs Copyright © 2024 Pearson Education, Inc. All Rights Reserved Hospitalization, Health, and Disability Insurance • Coverage – Patient Protection and Affordable Care Act ▪ Health Maintenance Organization (HMO) ▪ Preferred Provider Organization (PPO) • Mental health benefits Copyright © 2024 Pearson Education, Inc. All Rights Reserved Patient Protection and Affordable Care Act of 2010 and Other Laws • Patient Protection and Affordable Care Act of 2010 • The Consolidated Omnibus Budget Reconciliation Act (COBRA) • Other laws Copyright © 2024 Pearson Education, Inc. All Rights Reserved Trends in Employer Health-Care Cost Control • Health-care costs control is one big way HR can improve profits – Measuring and auditing health-care costs • Other cost-control options – Health savings accounts (HSAs) – Make sure employees know the costs • Wellness programs – Clinical prevention – Incentives Copyright © 2024 Pearson Education, Inc. All Rights Reserved HR as a Profit Center (2 of 2) The Doctor Is on the Phone Let’s talk about it… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Insurance Benefits (2 of 2) • Long-term care – Such as nursing assistance in old age • Life insurance – Accidental death and dismemberment coverage • Benefits for part-time and contingent workers Copyright © 2024 Pearson Education, Inc. All Rights Reserved Learning Objective 13.3: Discuss the Main Retirement Benefits. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Retirement Benefits: Social Security • Three types of benefits: – Retirement benefits – Survivor or death benefits – Disability • Medicare – Provides health services to people aged 65 or older Copyright © 2024 Pearson Education, Inc. All Rights Reserved Retirement Benefits: Pension Plans • Provide income to individuals in their retirement, and just over half of full-time workers participate in some type of pension plan at work – Contributory versus non-contributory – Defined contribution versus defined benefit Copyright © 2024 Pearson Education, Inc. All Rights Reserved 401 (k) and Other Pension Plans • 401(k) plans – Secure Act • Savings and thrift plan • Deferred profit-sharing plan • Employee stock ownership plan (ESOP) • Lifetime income accounts • Cash balance plans Copyright © 2024 Pearson Education, Inc. All Rights Reserved Know Your Employment Law (3 of 3) Pension Planning and the Law Let’s take a look… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Pension Planning and the Law • Pension Benefits Guarantee Corporation (PBGC) • Membership requirements • Vesting – Cliff vesting – Graded vesting Copyright © 2024 Pearson Education, Inc. All Rights Reserved Pensions and Early Retirement • Early retirement window – Often age 50+ – For a limited time, the employees can retire early, generally with a combination of improved or liberalized pension benefits plus a cash payment Copyright © 2024 Pearson Education, Inc. All Rights Reserved Online Benefits Management Systems Benelogic Let’s take a look… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Social Media Systems Communicating Benefits with Employees Let’s take a look… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Learning Objective 13.4: Outline the Main Employees’ Services Benefits. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Personal Services and Family-Friendly Benefits • These include – Personal services (such as legal and personal counseling) – “Family-friendly” services (such as child-care facilities) – Educational subsidies – Executive perquisites Copyright © 2024 Pearson Education, Inc. All Rights Reserved Personal Services • Voluntary benefits • Employee assistance programs (EAPs) – Provide counseling and advisory services for personal problems that may adversely affect the employee’s work life Copyright © 2024 Pearson Education, Inc. All Rights Reserved Family-Friendly (Work–Life) Benefits • Child care – Sick child benefits • Elder care • Educational subsidies • Other personal services benefits • Domestic partner benefits Copyright © 2024 Pearson Education, Inc. All Rights Reserved The Strategic Context Clif Bar Let’s talk about it… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Executive Perquisites • Company planes • Loans/Stock options • Financial counseling • Relocation Copyright © 2024 Pearson Education, Inc. All Rights Reserved Learning Objective 13.5: Explain the Main Flexible Benefit Programs. Copyright © 2024 Pearson Education, Inc. All Rights Reserved The Cafeteria Approach • A cafeteria plan provides participants an opportunity to receive a choice of certain benefits on a pretax basis. Types of plans • Flexible spending arrangements Copyright © 2024 Pearson Education, Inc. All Rights Reserved HR Tools for Line Managers and Small Businesses Employee Leasing Let’s talk about it… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Flexible Work Schedules • Telecommuting • Compressed workweek • Flextime • Job share • Work share Copyright © 2024 Pearson Education, Inc. All Rights Reserved The New Normal Remote and Hybrid Work Let’s look into it… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Diversity Counts Caring for the Kids Let’s talk about it… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Learning Objective 13.6: Explain How to Use Benefits to Improve Engagement, Productivity, and Performance. Copyright © 2024 Pearson Education, Inc. All Rights Reserved Employee Engagement Guide for Managers Costco’s Compensation Plan Let’s look into it… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Chapter 13 Review What you should now know… Copyright © 2024 Pearson Education, Inc. All Rights Reserved Copyright This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Copyright © 2024 Pearson Education, Inc. All Rights Reserved
