1、What is a benefit?oA benefit is an indirect reward given to an employee or group of employees for organizational membership.oBenefits often include retirement plans,vacations with pay,health insurance,educational assistance,and many more programs.oBenefits are a vital part of the total compensationt
2、otal compensation:$26.86,benefits:$8.04BENEFITS AND HR STRATEGYoChallenge:to balance the growing cost of benefits and the use of them in accomplishing organizational goalsoBenefits are a vital part of the total compensationoBenefits approach depends on many factorsStrategic Benefits ConsiderationsoC
3、ompetitive AdvantageoWorkforce Attraction and RetentionoBenefits ManagementoBenefits CommunicationBenefits as Competitive Advantageoaid recruiting and retention,impact organizational performance,and meet legal requirementsoreinforcing the company philosophy of social and corporate citizenshipomeet r
4、esponsibilities to employeesGlobal BenefitsoBenefits vary from country to country.oinfluence employees decisions about which particular employer to work for,whether to stay with or leave an employer,and when to retireorepresent a somewhat more valuable reward to employees than an equivalent cash pay
5、mentRole of Benefits for Workforce Attraction and RetentionBENEFITS MANAGEMENT AND COMMUNICATIONSEFFECTIVE BENEFITS MANAGEMENToBenefits DesignoBenefits AdministrationoTechnology AdministrationoBenefits MeasurementoCost-Control EffortsoCommunication to Employees How much total compensation,including
6、benefits,can be provided?What part of the total compensation of individuals should benefits constitute?Which employees should be provided which benefits?What expense levels are acceptable for each benefit offered?What is being received by the organization in return for each benefit?How flexible shou
7、ld the package of benefits be?Benefits DesignoPart-Time Employee Benefits?oFlexible Benefits or Standardized Benefits?Flexible BenefitsoDefinition:program that allows employees to select the benefits they prefer from groups of benefits established by the employer.oProblems:an inappropriate benefits
8、package may be chosen by an employee;only higher-risk employees select and use certain benefits.Flex plans will likely continue to grow in popularity.obenefits administration responsibilities can be split between HR specialists and operating managersoHR specialists play the more significant role,but
9、 managers must assume responsibility for some of the communication aspects of benefits administration.HR and Benefits AdministrationTypical Division of HR Responsibilities:Benefits AdministrationHR Technology and Benefitsocommunicate benefits information,conduct employee benefits surveys,and facilit
10、ate benefits administration.odecrease expenses,increase positive communication,and effectively connect people across many different HR functions,including benefits managementBenefits MeasurementMajor means:reducing or dropping benefitscost sharingusing wellness programsadding employee health educati
11、on effortschanging prescription drug programs Benefits Cost ControloIgnorance of the values and costsoemployees own decisions about benefits and generalized health.oBenefits communication and satisfaction of employees with their benefits are linked.timing and frequency,the communication sources,and
12、the specialized content.Benefit statementBenefits CommunicationTYPES OF BENEFITSHow the Typical Benefits Dollar Is SpentSECURITY BENEFITSoWorkers Compensation provides benefits to persons who are injured on the job.oUnemployment Compensation An employee who is out of work and is actively looking for
13、 employment normally receives up to 26 weeks of pay,at the rate of 50%to 80%of normal pay.oSeverance Pay offered by employers to individuals whose jobs are eliminated or who leave by mutual agreement with their employers.HEALTH CARE BENEFITSRate of escalation rate of inflation,change in earnings,inc
14、rease in GDP“Why are we offering these benefits anyway?”oUninsured WorkersoRetirees Health Benefits CostsIncreases in Health Benefits CostsControlling Health Care Benefits CostsoChanging Copayments and Employee ContributionsoUsing Managed Care preferred provider organization(PPO)health maintenance o
15、rganization(HMO)oMini-Medical PlansoHealth plan that provides employer financial contributions to employees to help cover their health-related expenses.(CDH plan)othe increases in health care benefits costs are shifted to employeesothe focus of controlling health care usage falls on employeesConsume
16、r-Driven Health PlansComponents of Consumer-Driven Health PlansoHealth Savings Accounts(HSA):):High-deductible health plans with federal tax advantages.oHealth Reimbursement Arrangements(HRA):health reimbursement account/personal care account Health plan in which the employer sets aside money in a h
17、ealth reimbursement account to help employees pay for qualified medical expenses.oapproaches designed to help employees understand why health care costs are increasing and what they can do to control them.Employee Reactions to Cost-Control Efforts:negativeosharing information and having a continuing
18、 and effective benefits communications plan!Health Care Preventive and Wellness EffortsoCOBRA Provisions The Consolidated Omnibus Budget Reconciliation ActoHIPAA Provisions The Health Insurance Portability and Accountability ActHealth Care LegislationOverview of COBRA ProvisionsoTax Laws Flexible Spending Accounts:the employee uses the money in the account to purchase additional benefits.oOther Important Health Care Legislation the Mental Health Parity and Addiction Equity Act the Childrens Health Insurance Program Reauthorization Act of 2009