Matakuliah: J0124/Manajemen Sumber Daya Manusia Tahun: 2007/2008 MODUL 18 Managing Employee Benefits

Bina Nusantara Learning Outcomes After studying this chapter, the students should be able to : define employee benefits & identify two strategic reasons of benefit Distinguish between mandated & voluntary benefits Describe two security benefits Explain the importance of health-care cost management Summarize benefits communication & flexible benefits

Bina Nusantara Outline Strategic perspective on benefit The nature & types of benefit Security benefits Retirement security benefits Health-care benefits Financial & other benefits Time-off benefits Benefits

Bina Nusantara Strategic perspectives on benefits The purposes : Reducing employees’ fatigue To fulfill employees’ needs Reducing employee’s turnover To aid recruitment & retention Total benefit costs can be funded both by contribution made by the employer and by the employees

Bina Nusantara Types of benefits Benefits Government-mandated benefits Voluntary benefits

Bina Nusantara Security Benefits Workers’ compensation Unemployment compensation Severance pay

Bina Nusantara Retirement security benefits Retirement benefits & age discrimination * early retirement * older worker benefit * retiree benefit Social security Pension plans Pension terms & concepts

Bina Nusantara Health-care benefits Controlling health-care benefit costs * co-payment * defined contribution plans for health benefit Managed care Health-care legislation

Bina Nusantara Financial & other benefits Financial benefits Relocations benefits Insurance benefits Educational benefits Social & recreational benefits Family-oriented benefits Family-care benefits

Bina Nusantara Time-off benefits Holidays pay Vacation pay Leaves of absence

Bina Nusantara Benefits administration Benefits communication * benefit statements * HRIS & benefit communication Flexible benefits Problems with flexible plans * inappropriate benefits package * adverse selection

Bina Nusantara Closing Benefits provide additional compensation to employees There are strategic reasons for offering benefits An important distinction of benefits is made between mandated & voluntary benefit Flexible benefit systems are increasing in popularity Explain the problems with Flexible-Benefit Plan Why should communicate the Benefit Package