tailieunhanh - Lecture Personnel economics in practice - Chapter 13: Benefits

After today’s lecture, you will be able to address the following: When is it advantageous for firms to use benefits in lieu of cash compensation? What categories of benefits are there? What benefits can a firm provide more cheaply than the employee can buy? How can benefits be used to enhance employee productivity? Is there a danger of diminishing productivity through benefits? | Chapter 13: Benefits 4/8/2013 Chapter 13: Benefits Wages versus Benefits Why Offer Benefits? Cost Advantage Economies of Scale Tax Arbitrage or Subsidy Value Advantage Employee Sorting Employee Productivity Government Mandate Implementation of Benefits Improving Employee Sorting Cafeteria Plans Pensions Plan Types Pensions and Turnover Vesting Portability Employee Stock Ownership Paid Time Off Summary 4/8/2013 Chapter 13 – Benefits After today’s lecture, you will be able to address the following: When is it advantageous for firms to use benefits in lieu of cash compensation? What categories of benefits are there? What benefits can a firm provide more cheaply than the employee can buy? How can benefits be used to enhance employee productivity? Is there a danger of diminishing productivity through benefits? 4/8/2013 3 Benefits Discussion Hourly cost of employees with benefits and “overhead” is often referred to as the burdened rate Question: On average, how much of every $ in wages . | Chapter 13: Benefits 4/8/2013 Chapter 13: Benefits Wages versus Benefits Why Offer Benefits? Cost Advantage Economies of Scale Tax Arbitrage or Subsidy Value Advantage Employee Sorting Employee Productivity Government Mandate Implementation of Benefits Improving Employee Sorting Cafeteria Plans Pensions Plan Types Pensions and Turnover Vesting Portability Employee Stock Ownership Paid Time Off Summary 4/8/2013 Chapter 13 – Benefits After today’s lecture, you will be able to address the following: When is it advantageous for firms to use benefits in lieu of cash compensation? What categories of benefits are there? What benefits can a firm provide more cheaply than the employee can buy? How can benefits be used to enhance employee productivity? Is there a danger of diminishing productivity through benefits? 4/8/2013 3 Benefits Discussion Hourly cost of employees with benefits and “overhead” is often referred to as the burdened rate Question: On average, how much of every $ in wages goes to benefits? Uniformly provided benefits may cost the firm more than the value to the worker Question: What can a firm do in such a case? 4/8/2013 4 Reasons Firms Offer Benefits Economies of scale Question: Is this the same as pooled risk? Most important is health insurance Note also cross-subsidization effect Legislation Tax advantages Health care Pension plans Mandates Employee sorting and/or productivity enhancement 4/8/2013 5 Employee Sorting & Self-Selection As noted, some benefits may represent less value to certain workers – this implicitly drives sorting Question: How can your firm use this to advantage? Benefits can also be used to develop specific human capital Question: Can you provide an example? Cafeteria Plan: Provide multiple choices and a fixed value of benefits What is the advantage to the employee? Is there a disadvantage to the firm? 4/8/2013 6 Employee Pension Plans Very significant component of employee cost Two major types of plans Defined benefit Defined .

• Kinh tế học
• Personnel economics
• Kinh tế học
• Personnel economics in practice
• Improving employee sorting
• Implementation of benefits
• Cafeteria plans
• Setting hiring standards
• Making decisions
• Imperfect information
• Screening job applicants
• Worker’s productivity
• Signaling more formally
• Investment in skills
• Investments in education
• On the job training
• Rent sharing
• Managing turnover
• Retention strategies
• Bidding for employees
• Decision making
• Benefits of centralization
• Benefits of decentralization
• Organizational structure
• Network structures
• Coordination mechanisms
• Job design
• Optimal job design
• Intrinsic motivation
• Advanced job design
• Group decision making
• Implementation of teams
• Performance evaluation
• Performance evaluation design
• Quantitative performance measures
• Rewarding performance
• Pay performance shape
• Performance pay methods
• Career based incentives
• Outside hiring
• Promotion probability
• Employee stock options
• Incentive pay
• Executive pay
• Human capital investment
• Internal markets
• Motivating creativity
• Employment relationship
• Perfect competition
• Imperfect competition
• Complex contracting
• school administration
• personnel administration
• business management
• production management
• personnel management
• Political economy