strategy for human resource management lecture 25 hrm 765
TRANSCRIPT
Last Lecture
• Employee benefits (Other than pay/wages) • Social security• Old Age Benefit• Domestic Partner Benefits• Health Insurance • Preferred Provider Organizations (Fixed Medical Rate)• The Health Insurance Portability and Accountability Act• Benefits Overview Benefits that are common at large communications
companies.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Retirement Benefits
Defined Benefit Plans
• Plan specifies the Dollar/Rupees benefit workers receive at retirement.
• Usually based on some formula of years of service and average final compensation.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Retirement Benefits
Defined Contribution Plans:
• Employee and employer may contribute to account based on rules established for contributions
• Amount of benefits depends on success of account investments.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Retirement Benefits
Money Purchase Pension Plan
• Type of defined contribution plan
• Organization commits to depositing fixed amount of money or percentage of employee’s pay annually.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Retirement Benefits
Profit-Sharing Plans
• Company amount contributed depends on profit level in the organization.
• Contribution is optional, not required.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Paid Time Off
Vacation and Holiday Leave – Vacation time is usually related to the length
of time on the job. – Some companies also allow personal days
that can be used for any reason.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Paid Time OffDisability Insurance Programs• Provides salary continuation for:
– Short-term disabilities (sick leave) – Long-term disabilities (coverage
usually effective after 6 months). • Some companies provide
financial incentives to employees to not use their sick leave.
• Long-term disability plans usually replace a portion of the employee’s salary, often 60 percent.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Survivor Benefits• Benefit payable to a designated
beneficiary upon the Employee's death.
• Usually are two types: – contributory – non-contributory
• In non-contributory the employer pays the total cost of the benefit.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Survivor Benefits
Group Term Life Insurance:
• Benefit is usually based on one to five times annual rate of pay.
Travel insurance:
• Life insurance for business travel-related deaths.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
The service side of benefits
– social and recreational events– employee assistance programs– housing– tuition reimbursement– uniforms– company-paid transportation– parking
• Employers often can provide services at no cost or at a significant reduction from the usual cost.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
An Integrative Perspective on Employee Benefits
• Flexible benefits programs allow employees to choose which benefits they want and help to keep costs down.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
An Integrative Perspective on Employee Benefits
Modular plans:
• Employees choose a pre-designed package of benefits from several options.
Core-Plus Options Plans
• Employees given core coverage (e.g. medical, life, disability) with option to select other benefits.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Summary Vacation and Holiday Leave Profit Sharing plansDisability Insurance Programs
contributory
non-contributory
– Social and recreational events, – employee assistance programs, – housing, – tuition reimbursement, – uniforms, – company-paid transportation,
Modular plans: • pre-designed package.
Core-Plus Options Plans • option to select other benefits. • Benefits in different countries
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins