BA 2204 and BAS 324 Human Resource Management Benefits Instructor: Ça ğ rı Topal 1

Overview and basic terms Group or organizational membership rewards that complement the base pay and pay incentives Plan rather than cash Contributions Coinsurance Copayment Deductible Flexible benefits 2

Types Legally required benefits Health insurance Retirement benefits Insurance plans Time-off Employee services 3

Benefits strategy Benefits mix Total compensation strategy Organizational objectives Workforce characteristics Benefits amount Flexibility of benefits 4

Legally required benefits Social security Workers’ compensation Unemployment insurance Unpaid leave 5

Voluntary benefits Health insurance Traditional health insurance plans Flexibility Health maintenance organization plans Wide range of services Preferred provider organization plans Flexibility and wide range of services 6

Voluntary benefits Retirement insurance Defined benefit plans Fixed retirement income based on the average of the employee’s last three to five years’ earnings before retirement Defined contribution plans Retirement income depending on the success of the plan’s investments 7

Voluntary benefits Other insurance plans Life insurance Benefits to the survivors of a deceased employee Long-term disability insurance Replacement income and pay for medical services for disabled employees who cannot perform their essential job duties 8

Voluntary benefits Paid time-off Sick leave Absence from work due to a short-term illness Vacations Time to stay away from the stresses of their work and to recharge Severance pay Pay give to laid-off employees to mitigate the shock of termination and to finance the employee’s search for a new position Holidays Time off on religious or national days 9

Voluntary benefits Employee services Services provided by employers to enhance the quality of employees’ work or personal life Services used to attract and retain employees when not offering competitive salaries or raises 10

Administering benefits Flexible benefits Modular plans Core-plus options plans Flexible spending accounts 11