tailieunhanh - Lecture Managing human resources (6/e): Chapter 12 - Wayne Cascio

Chapter 12 - Indirect compensation: Employee benefit plans. This chapter presents the following content: Strategic considerations in the design of benefits programs, classifying benefits, security & health benefits, payments for time not worked, employee services,. | Chapter 12 Indirect Compensation: Employee Benefit Plans Strategic Considerations in the Design of Benefits Programs The organization’s stage of development Projected rate of employment, growth, or downsizing Geographic redeployment Acquisitions Expected changes in profitability Each of these conditions suggests a change in the optimum “mix” of benefits to be consistent with long-term business plans Classifying Benefits Three broad categories exist for classifying benefits Security and health Payments for time not worked Employee services Security & Health Benefits Life Insurance Workers’ compensation Disability Insurance Hospitalization, surgical, and maternity coverage Health maintenance organizations (HMOs) Other medical coverage (dental, mental health, substance abuse) Sick leave Pension plans Social Security Unemployment insurance & supplemental unemployment insurance Severance pay Payments for Time Not Worked Vacations Holidays Reporting Time Personal excused absences Grievances | Chapter 12 Indirect Compensation: Employee Benefit Plans Strategic Considerations in the Design of Benefits Programs The organization’s stage of development Projected rate of employment, growth, or downsizing Geographic redeployment Acquisitions Expected changes in profitability Each of these conditions suggests a change in the optimum “mix” of benefits to be consistent with long-term business plans Classifying Benefits Three broad categories exist for classifying benefits Security and health Payments for time not worked Employee services Security & Health Benefits Life Insurance Workers’ compensation Disability Insurance Hospitalization, surgical, and maternity coverage Health maintenance organizations (HMOs) Other medical coverage (dental, mental health, substance abuse) Sick leave Pension plans Social Security Unemployment insurance & supplemental unemployment insurance Severance pay Payments for Time Not Worked Vacations Holidays Reporting Time Personal excused absences Grievances and negotiations Sabbatical leaves Employee Services Employee Services – a broad range of benefits that employees qualify for purely by virtue of their membership in the organization, and not because of merit Some examples include tuition aid, credit unions, auto insurance, company car, food service, stock-purchase plans, parking, fitness and wellness programs Gaining Control Over the Cost of Health Care Band together with other companies to form a ‘purchasing coalition’ to negotiate better rates with insurers Deal with hospitals and insurers as with any other suppliers Induce employees to choose reduced medical coverage voluntarily through flexible-benefits plans Negotiate directly with doctors Require pre-admission certification Cafeteria, or Flexible, Benefits Cafeteria Benefits – instead of all workers at a company getting the same benefits, each worker can pick and choose among alternative options “cafeteria style” Workers are offered a package of benefits that include ‘basic’ .