providing benefits

an essential part of the game

Sit in groups

We got GAMEs to play

• Get familiar with 9 Learning Outcomes(LOs)

• The role of employee benefits(Leary)

• Benefits required by law(Journey)

• Legal requirements for employee benefits(Hansey)

• Optional benefits programs(ChaoQian)

• Selecting employee benefits(Sugar)

• Communicating benefits to employees(Justin)

• Have some fun(Aziz!!!)

LO

n.

1. Something that promotes or enhances well-being; an advantage.

2. A payment made or an entitlement available in accordance with a wage agreement, an insurance policy, or a public assistance program.

3. A public entertainment, performance, or social event held to raise funds for a person or cause.

4. Archaic A kindly deed.

For the company :

• Attracting potential candidates

• Motivating employees

• Retaining those who may want to leave

For the employee:

• Maintain economic security • Pensions→retirement

• Insurance→unexpected costs

• Benefits impose significant costs.

• Law requirements

• Tax law tricks

• Better deal with groups

To teach employees:

• How to use them?

• Why are they valuable?

Communicating Benefit

LO1!

The importance of benefits

• Tax treatment of benefits

• Antidiscrimination Laws

• Accounting Requirement

LO8!

Regulations affecting design of benefit

Advantage True False

there are no limits or restrictions on the amount of capital or the operating losses that a corporation may carry back or forward.

no immediate tax on employees for the amount the employer contributes

the ability for employees to immediately take a tax deduction for the funds they contribute to the plans

For the those in the middle class and lower classes, an earnings tax may be a financial hardship, regardless of the amount.

tax-free earnings on the money in the retirement fund

USA case: • During an interview it is to ask only women if they

have child-care needs.

• Hiring only men to model male underwear is .

• If a company unintentionally hires a disproportionate number of non-minorities, they be held liable for discrimination.

• Organizations screen candidates using a test that reliably predicts on-the-job performance

illegal

legal

can

can

• China Case

a. It is _____ to ask only women to have a sexually transmitted disease examination or write about their menstruation when recruiting public officials

b.It is to ask applicants to have a hepatitis B check.

c.It is to ask the applicants to have a postgraduate degree when recruiting a security.

illegal

illegal

illegal

• The condition not related to the jobs is illegal.

• Group6 company has determined that they will have to reduce their benefits costs to stay competitive. Which of the following solutions is not a choice for Group6 ? a) A) Eliminate health coverage

b) B) Reduce the percentage of employees’ Social Security insurance they pay.

c) C) Reduce their unemployment insurance costs by managing their workforce to avoid layoffs.

d) D) Institute a safety program to minimize worker’s compensation costs.

• Accounting requirement in USA

• -FASB -Why? -How?

• Accounting requirement in China ↓

• The subsidies and non-monetary benefits for the employees' health care and life

• The cost of depreciation, maintenance and labor occurring in the inner collective benefit department

• The hardship subsidies for employees or the fund set and managed by company for assisting the employees in difficulty

• The additional cost for retired personnel

• Other employees' benefit according the requirement, for example, the funeral subsidies

U.S.A

1. Social Security (To provide support for retired workers)

• Old Age Insurance

• Survivor Insurance

• Disability Insurance

• Health Insurance

• 1. Can I select to begin receiving the retirement benefits before I reach the full retirement age?

• 2.What is exempt amount?

• 3.How the cost of Social Security is shared between employers and employees?

2.Unemployment Insurance (To minimize the hardship of unemployment)

• Payments to unemployed workers

• Help in finding new jobs

• Give incentives to stabilize employment

• Make workers can afford to wait to return to their employer.

For company:

• The size of the unemployment tax imposed on each employer depends on the employer’s experience rating. Careful human resource planning can minimize layoffs and keep their experience rating favorable

Who can receive it?

• A is actively seeking work, but has no working experiences before.

• B is not available for work because of his health condition.

• C is out of job now because he was discharged for cause

“State programs that provide benefits to workers who suffer work-related injuries or illnesses, or

to their survivors.”

3.Workers' Compensation (To provide benefits and services to workers injured on job)

• Disability income

• Medical care

• Death benefits

• Rehabilitative services

4.Unpaid Family and Medical Leave

• FMLA

5.Health Care Benefits

• PACA

• Pension Insurance

• Basic Medical Insurance

• Unemployment Insurance

• Maternity Insurance*

• On-Job Injury Insurance

U.S.A China

Social Security Old Age Insurance Survivor Insurance Disability Insurance Health Insurance Unemployment Insurance Workers' Compensation Disability income Medical care Death benefits Rehabilitative service Unpaid Family and Medical Leave Health Care Benefits

Social Security Pension Insurance Basic Medical Insurance Unemployment Insurance Maternity Insurance On-Job Injury Insurance Group Insurance Housing Funds

LO2!

Summarize the types of employee benefits required y law

Paid Leave Group Insurance

Retirement Plans “Family-Friendly” Benefits

Other Quality of Work-Life Benefits

Percentage of Full-Time Workers with Access to Selected Benefit Programs

Paid Leave

• Vacation

• Holidays

• Sick Leave

• Personal Days

• Floating Holidays

• Jury Duty

• Funerals

• Military Duty

• Time Off to Vote

- typically two weeks or less a year

- about 10 paid holidays each year

- based on length of service

Most flexible approach

Employer pools personal days, sick days, and vacation days for employees to use as the need arises

LO3!

Describe the most common forms of paid leave

Group Insurance

• Medical Insurance

• Life Insurance

• Disability Insurance

• Long-term care Insurance

• 70% of all full-time employees in the U.S. receive medical benefits, which cover:

– Hospital expenses

– Surgical expenses

– Visits to physicians

If the employee dies during the term of the policy, the employee’s beneficiaries receive a death benefit payment.

LO4!

Identify the kinds of insurance benefits offered by employers

Retirement Plans

About half of employees working in the private business sector have employer-

sponsored retirement plans.

• Contributory Plan

• Noncontributory Plan

A. retirement plan funded by contributions from the employer and employee.

B. retirement plan funded entirely by contributions from the employer.

LO5!

Define the types of retirement plans offered by employers

A B

• Defined benefit plan – pension plan that guarantees a specified level of retirement income.

• Defined contribution plan – retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account.

• Mrs. Fu does not know a lot about investing and wants to ensure she has some retirement income when she is old enough to retire. Aziz plans on changing his job every few years and is interested in investing his own money. Which plan would be best for Mrs. Fu and Aziz, respectively?

a) A) Defined contribution; defined benefit

b) B) Contributory; defined benefit

c) C) Defined benefit; defined contribution

d) D) Defined contribution; non-contributory

a) C) Defined benefit; defined contribution

Why: employees’ need to manage conflicts between their work and family roles

• Family Leave

• Child Care Benefits

• College Savings Plans

• Elder Care

“Family-Friendly” Benefits

Other Quality of Work-Life Benefits

• Tuition

reimbursement

• On-site fitness center

• Off-site company recreation area

• Pet services

• Subsidized cafeterias • On-site health care

services • Moving and relocation

expenses • Employee discounts on

products

LO6!

Describe how organizations use other benefits to match employees’ wants and needs

Name one possible employee benefit.

￥

We believe that employee Satisfaction drives , commitment drives , and engagement drives business .

Commitment

Performance

Engagement

Shine Program aims to find creative and practical ideas.

To encourage employees to come up with innovative ideas to make running the organization easier or to solve current problems

Suggestion Box Oral Suggestion

Aazziiizzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

zzzzzzzz

Not every recognition program needs to cost the company money.

Honour Wall

Certificates that is hand-signed by the executive

A special surprise visit from (the owner)

Recognition Outing - Give the employees a half day off and take them to an

early Dinner/Lunch

One day paid holiday

Level1 level 2

level 3

Reflect upon the Brand Image

Lunch for early shifters

Dinner for late shifters

• Level 3:public holidays(around 29 days)

• Level 2: public holidays plus a week

• Level 1:public holidays plus three weeks

Sales：

• 0.5% bonus for one product

Evaluation from customers：

• 2% for excellent

• 1% for good

• no bonus for plain or bad

• What’s the benefit of Shenzhen Hukou?

1.Higher pay of insurance

2.Fulfillment of job seeking

3.Education of children

4.Family members can get the residence with you after 2 years.

5.Free technical training

• There is a company which is planning to provide some benefits for its employees

• What is its aim or start point？

• Of course it is the company’s goals. If a company want to get a competitive advantage by retaining good employees, it must select and monitor its benefits effectively.

• What can the employees of the company get?

• Objective parts: The types and quality of the benefits package.

• Subjective parts: The value and expectations of the employees. (It is the criteria for the objective levels of benefits.)

Who should pay for the benefits?

• 1. Companies’ goal: Keeping balance of the cost and attractiveness of its benefits.

• 2.Employees’ economic position must be considered.

• If a company decides to start a certain benefit, how the company can ensure it can come into effect?

• We can share some examples again.

• For all effective benefits, there are three common standards to identify it.

• Legal requirement

• Availability

• Demographic

• One important method to achieve the standards is to establish Cafeteria-style plans.

• The plans will lead to higher administrative costs, how to avoid it?

• The answer is to use software packages and standardized plans.

• The analysis for Sunnia’s benefit project 1.Goal：Sunnia’s MVV 2.Expectation: Young female employees’ three needs: Survival, Development, Future Family 3.Budget

So we want to design a more flexible

arrangement for benefits. LO7!

Explain how to choose the content of benefit package

• Using multiple channels

• Be Congruent

• Take responsibility

• Establish mutual trust

• New employees – Offer introduction session

• Present employee – Offer seasonal consultation

• Distribute staff handbook

• Encourage employees to ‘Enjoy’ the benefits

• Suggestion?

LO8!

Discuss the importance of communicating the benefits