1. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Employee Benefits 1–1 The Challenges of Human Resources Management

2. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 34 Chapter Objectives Chapter Objectives After studying this chapter, you should be able to Explain why companies offer their employee’s benefits and are concerned about their costs. Describe the elements that have to be considered when developing a strategic benefits plan. Identify and explain the employee benefits required by law. Discuss the strategies companies utilize to control the costs of employee health care programs. Describe benefits that involve payment for time not worked. Discuss the recent trends in retirement policies and programs. Describe the different types of pension plans employers offer and the regulations related to them. Describe the types of work/life benefits that employers may provide. LEARNING OUTCOME 1 LEARNING OUTCOME 2 LEARNING OUTCOME 3 LEARNING OUTCOME 4 LEARNING OUTCOME 5 LEARNING OUTCOME 6 LEARNING OUTCOME 7 LEARNING OUTCOME 8

3. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 34 The Chief Objectives of Benefits Programs Improve employee work satisfactionImprove employee work satisfaction Meet employee health and security requirementsMeet employee health and security requirements Attract and motivate employeesAttract and motivate employees Reduce turnoverReduce turnover Maintain a favorable competitive positionMaintain a favorable competitive position

4. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 34 Strategic Benefits Planning

5. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 34 Elements of a Successful Benefits Program Competitive Benefits Information Allowing for Employee Involvement Flexible Benefits for a Diverse Workforce Administering Benefits Communicating Employee Benefits Information

6. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 6 of 34 Competitive Benefits Information Competitive Benefits InformationCompetitive Benefits Information  Chamber of Commerce  Bureau of Labor Statistics  Society of Human Resource Management  HR Consulting Firms  Competitors Web Sites  Internal Information

7. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 7 of 34 Allowing for Employee Involvement Need should be determined through consultation with employees.Need should be determined through consultation with employees. Surveys show that employees who are satisfied with their benefits are more likely to be satisfied with their jobs.Surveys show that employees who are satisfied with their benefits are more likely to be satisfied with their jobs. How to do it..How to do it..  Committees  Opinion Surveys  Focus Groups

8. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 34 Flexible Benefits for a Diverse Workforce Flexible Benefits Plans (Cafeteria Plans)Flexible Benefits Plans (Cafeteria Plans)  Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs. – A basic or core benefits package of life and health insurance, sick leave, and vacation ensures that employees have a minimum level of coverage. – Employees use “credits” to “buy” whatever other benefits they need.

9. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 34 Administering Benefits Administering an organization’s benefits program can be both costly and time-consumingAdministering an organization’s benefits program can be both costly and time-consuming Fortunately, online employee benefit systems have become mainstream for both large and small employers.Fortunately, online employee benefit systems have become mainstream for both large and small employers. Often referred to as employee self-service (ESS) systems.Often referred to as employee self-service (ESS) systems. They can result in a significant cost savings in benefits administration.They can result in a significant cost savings in benefits administration.

10. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 34 Communicating Employee Benefits Information Methods to communicate benefits to employeesMethods to communicate benefits to employees  In-house publications (employee handbooks, organizational newsletters, and postings on bulletin boards)  Brochures and enrollment information mailed to employees  Employee meetings and information sessions  Employee meetings with benefits providers such as the representatives of health care companies, the investment company that manages a firm’s pension, and so forth.  E-mails with benefit information and enrollments reminders  Blogs  Social media  Payroll inserts and pay stub messages  Benefits hotlines

11. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 34 Communicating Employee Benefits Information (cont.) Pointers for designing benefits informationPointers for designing benefits information  Avoid complex language when describing benefits. Clear, concise, and understandable language is a must.  Explain the purpose behind a benefit and the value it offers employees. Be up front about the pros and cons of different benefit plans.  Use graphics whenever possible to make the information understandable at a glance.  Provide numerous examples to illustrate how a benefit choice might affect different types of employees, depending upon their personal circumstances.

12. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 34 Employee Benefits Required by Law Legally required employee benefitsLegally required employee benefits  Social Security Insurance  Unemployment Insurance  Workers’ Compensation Insurance  COBRA Insurance  Benefits Provided by the Patient Protection and Affordable Care Act (PPACA)  Benefits Provided under the Family and Medical Leave Act (FMLA)

13. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 34 Employee Benefits Required by Law (cont.) Benefits paid are determined by an individual’s life-time earnings Provides long-term disability benefits Social Security Act (1935) A payroll tax on both employees and employers Old Age and Survivors Insurance (OASI) Must work 40 quarters in an occupation covered by Act to qualify for benefits

14. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 of 34

15. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 34 Unemployment Insurance Federal payroll tax on employer and employeeFederal payroll tax on employer and employee  Tax is refunded to states which individually administer unemployment compensation programs.  Benefit weekly amounts vary from state to state.  Involuntarily unemployed workers were originally eligible for up to 26 weeks of unemployment benefits.  Benefit is based on an employee’s recent earnings.  Unemployed workers are required to seek “suitable employment.”

16. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 34 Workers’ Compensation Federal- or state-mandated insuranceFederal- or state-mandated 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.  Factors influencing the employer’s insurance rate: – The risk of injury or illness for an occupation – Each state’s level of benefits for injuries sustained by employees varies. – The company’s frequency and severity of employee injuries (the company’s experience rating).

17. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 34 Workers’ Compensation (cont.) Covers Employers Covers Employees Cost of injury Negligent co-workers Contributory negligence Temporary, Permanent, Partial or Total Disability Temporary, Permanent, Partial or Total Disability Assumed employment risk Survivor’s Insurance Injury is a cost of doing business

18. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 34 COBRA and HIPAA The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA)The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA)  Mandates that employers make health coverage—at the same rate the employer would pay—available to employees, their spouses, and their dependents on termination of employment, death, or divorce.  The coverage must be offered for between 18 and 36 months depending on qualifying guidelines. Health Insurance Portability and Accountability Act (HIPAA) of 1996Health Insurance Portability and Accountability Act (HIPAA) of 1996  Grants employees the right to switch medical insurance between former and present employers with no gap in coverage regardless of preexisting health condition once the employees have earned twelve service credits at the former employee

19. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 34 The Family and Medical Leave Act (FMLA) Provisions:Provisions:  An employer must grant an eligible employee up to 12 workweeks of unpaid leave in a 12-month period for the following reasons: – Birth of and care for a newborn child. – Adoption or foster care placement of a child. – Care for an immediate family member – Serious health condition of the employee.  Employees retain their health benefits and have the right to return to their job or an “equivalent job.”  Those caring for service members are entitled to up to 26 weeks of leave

20. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 34 Major Discretionary Employee Benefits Health Care BenefitsHealth Care Benefits  Medical Benefits  Dental, optical, and Mental Health Benefits  Value-Based Health Initiatives  Wellness Programs  Disease Management Programs  Employee Assistance Programs  Counseling Services

21. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 34 Healthcare Cost Containment Health Maintenance Organizations (HMOs)Health Maintenance Organizations (HMOs)  Organizations of physicians and health-care professionals that provide a wide range of services to subscribers and dependents on a prepaid basis. Preferred Provider Organization (PPO)Preferred Provider Organization (PPO)  Is a group of physicians establish an organization that guarantees lower healthcare costs to the employer.  Allows employees to select their doctor of choice from a list of participating physicians.

22. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 34 Going Abroad for Medical Procedures

23. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 34

24. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 34 Payment for Time Not Worked Payment for Time Not WorkedPayment for Time Not Worked  Vacations with Pay  Paid Holidays  Sick Leave  Sabbaticals  Severance Pay  Supplemental Unemployment Benefits

25. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 34 Federally Recognized Holidays in the U.S.

26. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 34 Other Major Discretionary Benefits Life InsuranceLife Insurance Long-Term Care InsuranceLong-Term Care Insurance Retirement ProgramsRetirement Programs  Preretirement and Phased Retirement Programs Pension PlansPension Plans  401(k) Savings Plans  Cash Balance Pension Plans  Federal Regulation of Plans Domestic Partner BenefitsDomestic Partner Benefits

27. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 34 Types of Pension Plans Contributory planContributory plan –Contributions to a plan are made jointly by employees and employers. Noncontributory planNoncontributory plan –Contributions to a plan are made solely by the employer. Defined-benefit planDefined-benefit plan –The amount an employee is to receive upon retirement is specifically set forth. Defined-contribution planDefined-contribution plan –The basis (amount) an employer contributes to the pension fund is specified.

28. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 34 Types of Pension Plans (cont.) 401(k) Savings Plans401(k) Savings Plans –A tax-deferred savings plan. –Employees save through payroll deductions. –Employers may match a portion of employee savings. Cash-Balance Pension PlansCash-Balance Pension Plans –Employer contributes a percentage of employee’s pay each year. –Account balance earns interest each year. –Experts predict it will replace traditional pension plans.

29. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 34 Federal Regulation of Pension Plans Employee Retirement Income Security Act (ERISA)Employee Retirement Income Security Act (ERISA)  Private pension plans are subject to ERISA regulations that provides standards and controls for pension plans: – Plans must comply IRS tax standards to qualify. – Plans must meet actuarial standards to qualify for Pension Benefit Guarantee (PBGC) insurance. – Plans must meet Department of Labor standards for treatment of plan participants.

30. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 30 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 30 of 34 Work-Life Balance and Other Benefits Employee Assistance Programs (EAPs)Employee Assistance Programs (EAPs)  Services provided by employers to help workers cope with a wide variety of problems that interfere with the way they perform their jobs. – Typically provide diagnosis, counseling, and referral for advice or treatment for problems related to alcohol or drug abuse, emotional difficulties, and financial or family difficulties. Child and Elder CareChild and Elder Care  Care provided to a child or an elderly relative by an employee who remains actively at work.

31. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 31 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 31 of 34 Federal Regulation of Pension Plans (cont.) VestingVesting  A guarantee of accrued benefits to participants at retirement age, regardless of their employment status at that time.  ERISA requires that plans must provide that employees will have vested rights in their accrued benefits after certain minimum-years-of-service requirements have been met. Pension Plans and UnderfundingPension Plans and Underfunding  Inadequate funds to cover retirement obligations along with pension plan failures could overwhelm the PBGC.

32. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 34 Other Benefits

33. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 34 Key Terms backup care programbackup care program contributory plancontributory plan defined benefit plandefined benefit plan defined contribution plandefined contribution plan disease management programsdisease management programs elder careelder care employee assistance program (EAP)employee assistance program (EAP) flexible benefits plans (cafeteriaflexible benefits plans (cafeteria plans)plans) health maintenance organization (HMO)health maintenance organization (HMO) high-deductible health insurance plan (HDHP)high-deductible health insurance plan (HDHP) noncontributory plannoncontributory plan phased retirementphased retirement preferred provider organization (PPO)preferred provider organization (PPO) sabbaticalsabbatical severance payseverance pay supplemental unemploymentsupplemental unemployment benefits (SUBs)benefits (SUBs) vestingvesting wellness programswellness programs workers’ compensation insuranceworkers’ compensation insurance

34. © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 34 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 34 of 34 Chapter 11 - Learning Outcomes Learning Outcome StatementsRelated Outcomes from Body of the Text 1 Explain why companies offer their employee’s benefits and are concerned about their costs. If your employer offered you money instead of benefits, would you take it? Do you see any drawbacks to doing so? 2 Describe the elements that have to be considered when developing a strategic benefits plan. If you were a small business owner, how would you decide what benefits to offer your employees? 3 Identify and explain the employee benefits required by law. Some businesspeople and economists believe that U.S. companies are at a disadvantage because they pay for many worker benefits that in other countries are provided by the government. Do you think the U.S. is at a disadvantage because of this? What advantages does the U.S. system offer companies? 4 Discuss the strategies companies utilize to control the costs of employee health care programs. To lower costs, some companies fund their own health care programs (self-insure) rather than use outside insurance companies. What do you think the drawbacks of self-insuring are for employers? What types of organizations are likely to self-insure? 5 Describe benefits that involve payment for time not worked. In most countries around the world, employees get many more paid days off than they do in the United States. In your opinion, should employers have to offer U.S. workers more time off? Or would this be an additional burden that could hurt the competitiveness of these firms? 6 Discuss the recent trends in retirement policies and programs. Did you know there is a mandatory retirement age for airline pilots? Research some of the other jobs in the United States for which there are mandatory retirement ages. 7 Describe the different types of pension plans employers offer and the regulations related to them. The text mentions several kinds of pension plans. As an employee, which type would you prefer? 8 Describe the types of work/life benefits that employers may provide. What types of benefits that employers do not traditionally offer would most attract you as an employee? Discuss your preferences with classmates to see if their answers are similar or different than yours. Make a list of the benefits discussed and have everyone vote for the three benefits they would most want on the list.