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Dessler, Cole, Goodman, and Sutherland In-Class Edition Management of Human Resources Second Canadian Edition

Dessler, Cole, Goodman, and Sutherland In-Class Edition Management of Human Resources Second Canadian Edition. 9. Chapter Nine Employee Benefits and Services. © 2007 Pearson Education Canada 9- 1. The Strategic Role of Employee Benefits.

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Dessler, Cole, Goodman, and Sutherland In-Class Edition Management of Human Resources Second Canadian Edition

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  1. Dessler, Cole, Goodman, and Sutherland In-Class Edition Management of Human Resources Second Canadian Edition 9 Chapter Nine Employee Benefits and Services © 2007 Pearson Education Canada 9-1

  2. The Strategic Role of Employee Benefits • benefits are indirect financial payments received • by an employee during employment • develops loyalty, attract and retain employees • benefits average 37 percent of pay

  3. Legally Required Benefits Employment Insurance (EI) Canada/Quebec Pension Plan (C/QPP) Workers’ Compensation Provincial Health-Care Plans Vacation and Holidays Leaves of Absence Termination Pay

  4. Legally Required Benefits • Employment Insurance (EI) • provides income benefits for individuals • unable to work through no fault of their own

  5. Legally Required Benefits • Canada/Quebec Pension Plan (C/QPP) • provides retirement income and other • benefits to individuals who contribute to • these plans

  6. Legally Required Benefits • Workers’ Compensation • provides income and medical benefits to • victims of work-related accidents and illness, • regardless of fault

  7. Legally Required Benefits • Provincial Health-Care Plans • pay for basic hospital and medical services • with no direct fee to patients

  8. Legally Required Benefits Vacation and Holidays –sets out minimum amount of paid vacation –minimum is two weeks –varies as per jurisdiction

  9. Legally Required Benefits Leaves of Absence –maternity, parental and adoption –bereavement leave

  10. Legally Required Benefits Termination Pay –pay in lieu of notice –severance pay –pay for layoffs

  11. Voluntary Company-Sponsored Benefits • Additional Pay for Time Not Worked • short term disability/sick leave • -additional paid vacations and holidays • leaves of absence

  12. Voluntary Company-Sponsored Benefits • Insurance Benefits • group life insurance • supplementary health care/medical insurance • rising costs • retiree health benefits • long term disability insurance • disability management • stress and mental health benefits

  13. Voluntary Company-Sponsored Benefits • Retirement Benefits • membership requirements • benefit formula (defined benefit only) • retirement age and phased-in retirement • funding (contributory or non-contributory) • vesting • portability

  14. Employee Services Personal Services • credit unions • counseling services • employee assistance programs (EAPs) • other (social and recreational)

  15. Employee Services Job-Related Services • subsidized childcare • elder care • family-friendly benefits • educational subsidies

  16. Executive Perquisites • loans • golden parachutes • financial counseling • company relocation benefits • limousines • executive dining room • concierge service • …

  17. Flexible Benefits Programs • Advantages • choose benefits to suit individual needs • meet changing needs of workforce • increased employee involvement improves • understanding • introduction of new benefits less costly • (merely a new option) • cost containment: firm sets a dollar maximum

  18. Flexible Benefits Programs • Disadvantages • employees make bad choices (not covered • for predictable emergencies) • increased administrative cost • adverse selection: employees pick only benefits • they will use (subsequent high benefit utilization • increases cost)

  19. Benefits Administration -increasingly specialized due to legal requirements and sophisticated users -trend to outsourcing this function -benefits communication critical for flexible benefit plans, and increasingly important for pensions

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