Employees
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Describe the effect of employee benefits on
labor costs
List and describe employee benefits commonly
provided by employers
Identify the personal importance of employee
benefits upon entering the labor market
Lesson Objectives
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Accidental Death and
dismemberment policy
Defined-Benefit plan
Defined-Contribution
Plan
Disability Insurance
Fee-for-service
Flextime
Health Insurance
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Key Vocabulary
Health Maintenance
Organization
Holiday Pay
Jury Duty Pay
Life Insurance
Military Duty Pay
Preferred Provider
Organization
Pretax Benefits
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Quality of life benefit
Retirement Plan
Sick leave pay
Stock Option
Telecommuniting
Work-related Education assistance
Key Vocabulary
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Why do people work?
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Pretty simple
Other than for money, why do people work?
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What about health insurance, life insurance, and
retirement?
Willingness to take care of an employee says
something about an employer and about
company values
After all, everyone wants to work in an
organization where employees are valued
Employee Benefits
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Download- Worksheet: Labor Statistics
Research
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Complete this using the website available on the
worksheet
Begin your research by finding the average
annual wages of each of the jobs listed on the
resource
Labor Statistics
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Why do some jobs pay more than others?
How might pay levels vary from one part of the
country to another?
Firms spend huge amounts of money on wages.
How can businesses keep these costs down?
What trade-offs are involved?
Considering Employee
Pay Levels
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Most companies—especially firms that are part
of service industries (such as banks, hotels,
etc.)—more of their operating costs are tied up
in employee-related costs than in any other
area
The primary cost is wages—the hourly or
annual pay that workers earn
However, this isn’t the only cost that employers
must factor into their operating budgets
Benefits typically account for about 30% of total
labor costs in most industries
Considering Employee
Pay Levels
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Everyone in this room probably has at least
some experience with what it means to have a
job
While there are intrinsic rewards to many jobs,
most people work to make money
Employees receive wages for their work as well
as a package of benefits.
Employee Benefits
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Download- Reading: Employee Benefits
Employee Benefits
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Apart from employer-paid taxes, there are few
benefits that a company must provide to an
employee
Mandatory health insurance coverage or shortterm disability may also be required in a few
states.
Why do most employers provide more benefits for
an employee than required by law?
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Considering Employers’
Motivation
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Company A currently pays its employees a
good wage but offers no benefits
Its senior managers are considering adding
health insurance to employee compensation,
which will increase by 20% the amount each
worker costs the company.
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Agree or Disagree?
Considering Employers’
Motivation
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Where will the money to pay for the additional
benefits come from?
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Benefits are a cost to employers and the money
must come from somewhere
Increased benefits might mean
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a lower profit margin for the company
a higher price for the goods they sell
smaller raises for current employees
lower wages for new employees—which in turn
means the company might have to hire lessqualified workers
Considering Employers’
Motivation
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Download- Worksheet: Employee Benefits Grid
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Complete the worksheet by filling in the
particular benefit category (retirement plans,
health care plans, life insurance, disability, etc.)
with a short description of what it refers to on
the resource
Employee Benefits Grid
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Discuss which benefit category would be most
important for:
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A single mother raising a family
A person who is diabetic
A working family with three high-school-aged
children
A 20-something bachelor with a high-paying job
Employee Benefits Grid
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Identify three family members or personal
contacts that they would like to interview
Next, ask each of the three individuals about
their own employee benefits program
Use Worksheet: Employee Benefits Grid, to
record your answers
Record the information from the three different
individuals with tally marks next to the
appropriate yes (Y) or no (N) column.
Surveying Personal
Contacts
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What types of positions did the people whom
they interviewed hold?
Did they receive benefits?
If so, were they happy with their benefit
package?
Surveying Personal
Contacts
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Download- Table: Benefit Packages
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Use this information to write a summary on
which business you would choose to work for
based on the information
Download- Assignment: The Right Company
for Me
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How does this example meet the requirements
for this assignment?
If you had created this draft, what would you
improve?
Exploring Employee
Benefits
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What type of person would be interested in
Company 1?
What type of person would be interested in
Company 2?
Understanding the various options and benefits
before accepting any position is important
From retirement plans to education assistance,
employee benefits packages can be costly for
the employer and can account for 30% (and in
some cases, more) of an individual’s salary
What’s Important to Me?
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Ask students to choose a profession within the
financial services industry that interests them.
Next, instruct students to research a particular
company that offers positions in that field and
investigate the types of benefit packages and
incentives that are offered to their employees.
Finally, have students present the information
to the class.
Enrichment
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Social Studies: Research the German
philosopher and political economist, Karl
Marx.
Specifically investigate Karl Marx’s views of
employment and the exploitation of the
worker.
Draft a short oral presentation in which they
discuss their findings with the class.
Cross-Curricular
Integration