Transcript Lecture 24 SHRM ATIF.ppt

Strategy for Human Resource
Management
Lecture 24
HRM 765
Last Lecture
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Group Incentives (dependent work)
Individual Incentives (Independent work)
Paying for Performance
– piece-rate plans
– Gain-sharing
– wage incentive plans
– profit sharing
– lump sum bonuses
Deferred bonuses (long term stay)
Stock options
Hiring bonuses (in case of lose)
Perks
Golden parachutes (in case of merger)
International Compensation (base salary, difference in cost of living, assistance
programs)
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Topic
Employee Benefits
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Learning Outcomes
After reading this chapter, you will be able to:
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Discuss why employers offer benefits to their employees.
Contrast Social Security, Old Age Benefit, and workers’ compensation benefits.
Identify and describe the major types of health insurance options.
Outline and describe major types of retirement programs organizations offer.
Explain the reason companies offer vacation benefits to their employees.
Describe the purpose of disability insurance programs.
List the various types of flexible benefit option programs.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
What to do?
A
• Rs. 50,000
B
• Rs. 45,000
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30 leaves /Year
Car
Free Medical
Life Insurance
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Introduction
Employee benefits
• Have grown in importance and variety
• Typically membership-based rewards
offered to attract and keep employees
• Do not directly affect a worker’s
performance, but inadequate benefits
lead to employee dissatisfaction.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Benefits
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Introduction
Costs of Providing Employee Benefits
– Benefit and service offerings add about 40%
to an organization’s payroll cost.
– Benefits become the focus of negotiations
with employees when large wage and salary
increases are not feasible.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Introduction
Contemporary Benefits
Offerings
– Benefits today reflect the diversity
of the work force.
– Challenge -- designing a benefits
package which is attractive to
applicants and current workers,
and provides all the legally
required benefits.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Legally Required Benefits
Social Security
– Financed by equal employee and employer
contributions, based on a percentage of
earnings.
– Provides income for retirees, disabled
workers and surviving dependents.
– Provides some health insurance coverage
through Medicare.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Legally Required Benefits
Old Age Benefit
After the retirement a fixed amount of
monney to an employee.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Legally Required Benefits
Workers’ Compensation
– Paid by the organization
– Rates based on likelihood of accidents, and
the type of industry.
– Benefits pay expenses and/or compensate for
losses resulting from work-related accidents
or illness, regardless of fault.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Legally Required Benefits
Family and Medical Leave
Vacations
Medical leaves
Paid leaves
Forced leaves
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Voluntary Benefits
Traditional health
insurance
• Typically has the fewest
coverage limitations for
the employee
• Usually the most
expensive
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Domestic Partner Benefits
Benefits offered to an employee’s living partner.
e. g. Wife/Husband
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Voluntary Benefits
Preferred Provider Organizations (PPOs)
• Member health care providers agree to
provide services at a fixed fee
• Employees are encouraged by lower rates
to use member or “preferred” providers.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Voluntary Benefits
Health insurance continuation
• The Consolidated Omnibus Budget
Reconciliation Act (COBRA)
– Provides for continuation of benefits for
up to three years after an employee
leaves a job.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Voluntary Benefits
The HIPAA Requirement
• The Health Insurance Portability and
Accountability Act.
– Imposed on employers and health providers
regulations regarding the confidentiality of
employee health information.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
Summary
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Employee benefits (Other than pay/wages)
Social security
Old Age Benefit
Domestic Partner Benefits
Health Insurance
Preferred Provider Organizations (Fixed Medical Rate)
The Health Insurance Portability and Accountability Act
Benefits Overview
Benefits that are common at large communications companies.
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins