designing and administering benefits l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Designing and Administering Benefits PowerPoint Presentation
Download Presentation
Designing and Administering Benefits

Loading in 2 Seconds...

play fullscreen
1 / 21

Designing and Administering Benefits - PowerPoint PPT Presentation


  • 603 Views
  • Uploaded on

Designing and Administering Benefits. Chapter 12. Chapter 12 Overview. Explain the significance of employee benefits to both employers and employees Design a benefits package that supports the firm’s overall compensation strategy and other HRM policies

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Designing and Administering Benefits' - Thomas


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
designing and administering benefits
Designing andAdministering Benefits

Chapter 12

(c) 2007 by Prentice Hall

chapter 12 overview
Chapter 12 Overview
  • Explain the significance of employee benefits to both employers and employees
  • Design a benefits package that supports the firm’s overall compensation strategy and other HRM policies
  • Distinguish between a defined benefit retirement plan & a defined contribution retirement plan and recognize the situations in which each is most appropriate
  • Discuss how traditional health insurance plans and managed-care health insurance plans work and the advantages and disadvantages of each

(c) 2007 by Prentice Hall

chapter 12 overview cont d
Chapter 12 Overview (cont’d)
  • Develop cost-containment strategies for the different types of employee benefits
  • Understand the administrative complexities of providing a full array of benefits to the work force and suggest ways to deliver benefits effectively
  • Recognize the HR department’s key role in keeping accurate records of employee benefits and informing employees about their benefits

(c) 2007 by Prentice Hall

the managerial perspective to benefits
The Managerial Perspective to Benefits
  • Benefits issues are important to employees
  • Benefits are a powerful recruiting tool
  • Benefits help retain talented employees
  • Certain benefits play a part in managerial decisions
  • Benefits are important to managers

(c) 2007 by Prentice Hall

an overview of benefits
An Overview of Benefits
  • Employee benefits or indirect compensation – Group membership rewards that provide security for employees and their family members

(c) 2007 by Prentice Hall

how the benefits dollar is spent
How the Benefits Dollar Is Spent

(c) 2007 by Prentice Hall

benefits basic terminology
Benefits – Basic Terminology
  • Contributions
  • Coinsurance
  • Copayment
  • Deductible
  • Flex/cafeteria benefits program

(c) 2007 by Prentice Hall

the cost of benefits in the u s
The Cost of Benefits in the U.S.
  • Federal tax policy
  • Federal legislation
  • Union influence
  • Cost saving of group plans

(c) 2007 by Prentice Hall

types of benefits
Types of Benefits
  • Legally Required Benefits
  • Health Insurance
  • Retirement
  • Insurance
  • Paid Time Off
  • Employee Services

(c) 2007 by Prentice Hall

the benefits strategy
The Benefits Strategy
  • The Benefits Mix
  • Benefits Amount
  • Flexibility of Benefits

(c) 2007 by Prentice Hall

legally required benefits
Legally Required Benefits

Social Security

  • Retirement Income
  • Disability Income
  • Medicare
  • Survivor Benefits

(c) 2007 by Prentice Hall

legally required benefits12
Legally Required Benefits
  • Workers’ Compensation
  • Unemployment Insurance – SUB
  • Unpaid Leave – FMLA of 1993

(c) 2007 by Prentice Hall

voluntary benefits
Voluntary Benefits

Health Insurance

  • COBRA of 1985
  • HIPAA
  • Preexisting Condition

Traditional Health Insurance

  • Premium

(c) 2007 by Prentice Hall

voluntary benefits15
Voluntary Benefits
  • Health Maintenance Organizations (HMOs)
  • Preferred Provider Organizations (PPOs)
  • Health Insurance Coverage of Employees’ Partners
  • Health-care Cost Containment

(c) 2007 by Prentice Hall

customer driven hr
Customer-Driven HR
  • Tips for obtaining your own health insurance
    • Form your own small group
    • Join an association that has group coverage
    • Check out prices on the Web
    • Take advantage of COBRA provisions

(c) 2007 by Prentice Hall

retirement benefits
Retirement Benefits
  • ERISA – vesting
  • Defined Benefits Plan – pensions
  • Defined Contribution Plans
      • 401k
      • IRA
      • SEP
      • Keogh Plan
      • Hybrid

(c) 2007 by Prentice Hall

insurance plans
Insurance Plans
  • Life Insurance
    • Long-term disability insurance
  • Paid Time Off
    • Sick leave
    • Vacations
    • Severance pay
    • Holiday and other paid time off
  • Employee Services

(c) 2007 by Prentice Hall

administering benefits
Administering Benefits

Flexible Benefits

  • Types of flexible benefits plans
    • Modular
    • Core-plus options
    • Flexible spending accounts
  • Challenges with flexible benefits
    • Adverse selection
    • Employees who make poor choices
    • Administrative complexity

(c) 2007 by Prentice Hall

administering benefits20
Administering Benefits

Benefits Communication

  • Increasing complexity of programs
  • Companies do not devote resources to explain programs to employees

(c) 2007 by Prentice Hall

summary and conclusions
Summary and Conclusions
  • An Overview of Benefits
  • The Benefits Strategy
  • Legally Required Benefits
  • Voluntary Benefits
  • Administering Benefits

(c) 2007 by Prentice Hall