Human resource management 8e by gomez mejia 2016 chapter 12

Chapter 12 Designing and Administering Benefits Copyright © 2016 Pearson Education, Inc 12-1 Chapter Challenges Grasp an overview of benefits Develop the benefits strategy Know the legally required benefits Copyright © 2016 Pearson Education, Inc 12-2 Chapter Challenges Have familiarity with the voluntary benefits Learn practices for administering benefits Copyright © 2016 Pearson Education, Inc 12-3 Managerial Perspective • Benefit 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 Copyright â 2016 Pearson Education, Inc 12-4 An Overview of Benefits Employee Benefits • Indirect compensation • Based on group membership • Provide security for employees and family • Costly: 1929, 3% of payroll; 2013, 30.9% Copyright © 2016 Pearson Education, Inc 12-5 How the Benefit Dollar Is Spent Copyright © 2016 Pearson Education, Inc 12-6 Benefit Terminology • • • • • Contributions Coinsurance Copayment Deductible Flexible benefit programs Copyright © 2016 Pearson Education, Inc 12-7 Cost of Benefits in the United States • • • • Federal tax policy Federal legislation Union influence Cost savings of group plans Copyright © 2016 Pearson Education, Inc 12-8 Types of Benefits Legally Required Benefits Health Insurance Retirement Insurance Paid Time Of Employee Services Copyright â 2016 Pearson Education, Inc 12-9 Starbucks Benefits Health care benefits (medical, prescription drugs, dental, and vision care) • Retirement savings plan • Life insurance and disability insurance • Adoption assistance • Domestic partner benefits • Referral programs and support resources for child care and elder care • Discounted Starbucks merchandise Participation in stock program Copyright â 2016 Pearson Education, Inc 12-10 The Benefits Strategy • The Benefits Mix • Benefits Amount • Flexibility of Benefits Copyright © 2016 Pearson Education, Inc 12-11 Legally Required Benefits Social Security Retirement Income Disability Income Medicare Survivor Benefits Unemployment Insurance Actively Seeking Work involuntary Terminations Supplemental Unemployment Benefits Copyright © 2016 Pearson Education, Inc 12-12 Social Security Benefits Copyright © 2016 Pearson Education, Inc 12-13 Unemployment Benefits Comparisons • United States: 50% of salary for months • Italy: 80% of salary for months • Japan: 80% of salary for 10 months • France: 75% of salary for 60 months • Germany: 60% of salary for 12 months • Sweden: 80% of salary for 15 Copyright © 2016 Pearson Education, Inc 12-14 Legally Required Benefits Workers’ Compensation Compensation due to Injury on the job FMLA Birth or adoption of a child Care for sick spouse, child, or parent Serious health condition Copyright © 2016 Pearson Education, Inc 12-15 Voluntary Benefits • Health Insurance o COBRA o PACA (2010) o HIPAA • Traditional Health Insurance • Health Maintenance Organization (HMO) • Preferred Provider Organization (PPO) Copyright © 2016 Pearson Education, Inc 12-16 Voluntary Benefits • Health Insurance Coverage of Employees’ Partners • Health Savings Accounts (HSAs) • Health Care Cost Containment Insurance Plans Copyright â 2016 Pearson Education, Inc 12-17 Retirement Benefits • Employee Retirement Income Security Act (ERISA) • Defined Benefit Plans • Defined Contribution Plans Copyright © 2016 Pearson Education, Inc 12-18 A Comparison of Defined Contribution Retirement Plans Copyright © 2016 Pearson Education, Inc 12-19 Voluntary Benefits • Paid Time Of o Sick Leave o Vacations o Severance Pay o Paid Parental Leave o Holidays and Other Time Of Employee Services Copyright â 2016 Pearson Education, Inc 12-20 Administering Benefits • Flexible Benefits o Types of Plans o Challenges Benefits Communication Copyright â 2016 Pearson Education, Inc 12-21 Summary and Conclusions • • • • • An Overview of Benefits The Benefits Strategy Legally Required Benefits Voluntary Benefits Administering Benefits Copyright © 2016 Pearson Education, Inc 12-22 Pearson Education, Inc Copyright Copyright © 2016 Pearson Education, Inc 12-23 ... Supplemental Unemployment Benefits Copyright © 2016 Pearson Education, Inc 12- 12 Social Security Benefits Copyright © 2016 Pearson Education, Inc 12- 13 Unemployment Benefits Comparisons • United... 1929, 3% of payroll; 2013, 30.9% Copyright © 2016 Pearson Education, Inc 12- 5 How the Benefit Dollar Is Spent Copyright © 2016 Pearson Education, Inc 12- 6 Benefit Terminology • • • • • Contributions.. .Chapter Challenges Grasp an overview of benefits Develop the benefits strategy Know the legally required benefits Copyright © 2016 Pearson Education, Inc 12- 2 Chapter Challenges