1. Managing Human Resources - Unit 11
Employee Benefits
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

2. Managing Human Resources - Unit 11
Learning Outcomes
After studying this chapter, you should be able to:
Describe the characteristics of a sound benefits program.
Indicate management concerns about the costs of employee benefits, and discuss ways to control those costs.
Identify and explain the employee benefits required by law.
Discuss suggested ways to control the costs of health care programs.
Describe benefits that involve payment for time not worked.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

3. Learning Outcomes (Cont’d)
Managing Human Resources - Unit 11
Learning Outcomes (Cont’d)
After studying this chapter, you should be able to:
Discuss the recent trends in retirement policies and programs.
Indicate the major factors involved in managing pension plans.
Describe the types of work/life benefits that employers can provide.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

4. The Chief Objectives of Benefits Programs
Managing Human Resources - Unit 11
The Chief Objectives of Benefits Programs
Improve employee work satisfaction
Meet employee health and security requirements
Attract and motivate employees
Reduce turnover
Maintain a favourable competitive position
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

5. Requirements for a Sound Benefits Program
Managing Human Resources - Unit 11
Requirements for a Sound Benefits Program
Strategic Benefits Planning
Allowing for Employee Involvement
Benefits for a Diverse Workforce
Providing for Flexibility
Communicating Employee Benefits Information
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

6. Providing for Flexibility
Managing Human Resources - Unit 11
Providing for Flexibility
Flexible Benefits Plans (Cafeteria Plans)
Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

7. Figure 11–1 Flexible Benefits Plans: Advantages and Disadvantages
Managing Human Resources - Unit 11
Figure 11–1 Flexible Benefits Plans: Advantages and Disadvantages
ADVANTAGES
Employees select benefits to match their individual needs.
Benefit selections adapt to a constantly changing (diversified) workforce.
Employees gain greater understanding of the benefits offered to them and the costs incurred.
Employers maximize the psychological value of their benefits program by paying only for highly desired benefits.
Employers limit benefit costs by allowing employees to “buy” benefits only up to a maximum (defined) amount.
Employers gain competitive advantage in the recruiting and retention of employees.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

8. Managing Human Resources - Unit 11
Figure 11–1 Flexible Benefits Plans: Advantages and Disadvantages (cont’d)
DISADVANTAGES
Poor employee benefits selection results in unwanted financial costs.
There are certain added costs to establishing and maintaining the flexible plan.
Employees may choose benefits of high use to them that increase employer premium costs.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

9. Communicating Benefits Information
Managing Human Resources - Unit 11
Communicating Benefits Information
In-house publications (employee handbooks and organizational newsletters)
Group meeting and training classes
Audiocassettes/videotapes
Bulletin boards
Payroll inserts/pay stub messages
Specialty brochures
Employee self-service systems (ESS)
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

10. Managing Human Resources - Unit 11
Management Concerns
Concerns of Management
Union demands for additional benefits
Benefits offered by other employees
Tax consequences of benefits
Rising costs of providing benefits
Benefits coverage for domestic partners
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

11. Benefits Mandated By Law
Managing Human Resources - Unit 11
Benefits Mandated By Law
Required By Law
Discretionary
Canada /Quebec Pension Plans
Health care
Employment Insurance
Payment for time not worked
Workers’ Compensation
Severance Pay
Provincial Hospital and Medical
Services
Life and LT care insurance
Retirements and pensions
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd. 6

12. Canada and Quebec Pension Plans
Covers all employees between ages of 18 and 70.
Used to pay retirement pensions, disability benefits and survivor benfits.
All contributions come from employers and employees
Copyright © 2011 by Nelson Education Ltd.

13. Employment Insurance
Benefits paid to claimants who are unemployed and actively seeking employment.
Copyright © 2011 by Nelson Education Ltd.

14. Workers’ Compensation Insurance
Managing Human Resources - Unit 11
Workers’ Compensation Insurance
Workers’ Compensation Insurance
Provincial and territorial insurance (funded by an employer payroll tax) provided to workers to defray the loss of income and cost of treatment due to work-related injuries or illness.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

15. Figure 11–3 Reducing Workers’ Compensation Costs: Key Areas
Managing Human Resources - Unit 11
Figure 11–3 Reducing Workers’ Compensation Costs: Key Areas
Perform an audit to assess high-risk areas within a workplace.
Prevent injuries by proper ergonomic design of the job and effective assessment of job candidates.
Provide quality medical care to injured employees by physicians with experience and preferably with training in occupational health.
Reduce litigation by effective communication between the employer and the injured worker.
Manage the care of an injured worker from the time of injury until return to work.
Keep a partially recovered employee at the work site.
Provide extensive worker training in all related health and safety areas.
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

16. Provincial Hospital and Medical Services
Many employers offer third party benefit coverage for additional benefits, beyond provincial health care.
Copyright © 2011 by Nelson Education Ltd.

17. Discretionary Major Employee Benefits
Health care benefits
Payment for time not worked
Severance pay
Life insurance
Retirement programs
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18. Health care benefits
Health care benefits which include the costs of hospitalization, prescription drugs, dental care, optical care, and mental health benefits.
Cost containment.
Copyright © 2011 by Nelson Education Ltd.

19. Payment for Time Not Worked
Managing Human Resources - Unit 11
Payment for Time Not Worked
Sick leave
Severance pay
Paid holidays
Vacations with pay
Time Not Worked
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

20. Managing Human Resources - Unit 11
Retirement Programs
Silver Handshake
Preretirement Programs
Retirement
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

21. Types of Pension Plans Contributory plan Defined-benefit plan
Contributions to a plan are made jointly by employees and employers.
Defined-benefit plan
The amount an employee is to receive upon retirement is specifically set forth.
Noncontributory plan
Contributions to a plan are made solely by the employer.
Defined-contribution plan
The basis (amount) an employer contributes to the pension fund is specified.
Copyright © 2011 by Nelson Education Ltd.

22. Federal Regulation of Pension Plans
Managing Human Resources - Unit 11
Federal Regulation of Pension Plans
Vesting
Pension Portablity
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

23. Employee Services: Creating a Work/Life Setting
Managing Human Resources - Unit 11
Employee Services: Creating a Work/Life Setting
Employee Assistance Programs (EAPs)
Child and Elder Care
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

24. Benefits Educational assistance plans
Copyright © 2011 by Nelson Education Ltd.

25. Figure 11–5 Family-Friendly Benefits: Balancing Work and Home Needs
Managing Human Resources - Unit 11
Figure 11–5 Family-Friendly Benefits: Balancing Work and Home Needs
Child care/elder care referral services
Time off for children’s school activities
Employer-paid onsite or near-site child care facilities
Flexible work hours scheduling
Employer-accumulated leave days for dependant care
Subsidized temporary or emergency dependant care
Extended leave policies for child/elder care
Sick-child programs (caregiver on call)
Work-at-home arrangements/telecommuting
Partial funding of child care costs
Customized career paths
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd.

26. Other Benefits and Services
Managing Human Resources - Unit 11
Other Benefits and Services
Awards
Food Services
Recreational and Social
On-Site Health Services
Credit Unions
Legal Services
Purchasing Assistance
Financial Planning
Transportation Pooling
Housing and Moving
Copyright © 2011 by Nelson Education Ltd.
Copyright © 2011 by Nelson Education Ltd. 8