HRM Dessler CH# 13

1. Human Resource
Management
1
ELEVENTH EDITION
GARY DESSLER
Part 4 | Compensation
Chapter
13
Benefits and Services
© 2008 Prentice Hall, Inc.
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama

2. After studying this chapter, you should be able to:
1. Name and define each of the main pay for time not
worked benefits.
2. Describe each of the main insurance benefits.
3. Discuss the main retirement benefits.
4. Outline the main employees’ services benefits.
5. Explain the main flexible benefit programs.
© 2008 Prentice Hall, Inc. All
rights reserved.
13–2

3. Benefits
Types of Employee
Benefits
Supplemental
Pay
Insurance
Benefits
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rights reserved.
Retirement
Benefits
Employee
Services
13–3

4. Policy Issues in Designing Benefit Packages
Which benefits to offer
Who will be covered
Whether to include retirees
Coverage during probation
Policy Issues
How to finance benefits
Degree of employee choice
Cost containment
procedures
Communicating benefits
options
© 2008 Prentice Hall, Inc. All
rights reserved.
13–4

5. Pay For Time Not Worked
Vacations and
Holidays
Unemployment
Insurance
Sick
Leave
Supplementa
l Pay
Benefits
Severance
Pay
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rights reserved.
Parental
Leave
Supplemental
Unemployment
Benefits
13–5

6. Insurance Benefits
• Workers’ Compensation
 Provides income and medical benefits to work-
related accident victims or their dependents,
regardless of fault.
Death or disability: a cash benefit based on earnings per
week of employment.
 Specific loss injuries: statutory list of losses

 Controlling workers’ compensation costs
Screen out accident-prone workers.
 Make the workplace safer.
 Thoroughly investigate accident claims.
 Use case management to return injured employees to work
as soon as possible.

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rights reserved.
13–6

7. Trends in Health Care Cost Controls
Cost-Control
Trends
Communication,
Involvement, and
Empowerment
Premiums and
Co-Pays
Prevention
Programs
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rights reserved.
Health Savings
Accounts
13–7
Claim
Audits

8. Other Cost-Control Options
Automating health care
plan administration
Defined contribution
health care plans
Controlling Health
Care Costs
Outsourcing health care
plan administration
Eliminating retiree
health care coverage
Benefits purchasing
alliances
© 2008 Prentice Hall, Inc. All
rights reserved.
13–8

9. Retirement Benefits (cont’d)
Policy Issues In
Pension Planning
Membership
Requirements
Benefit
Formula
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Plan
Funding
Vesting
13–9

10. Retirement Benefits (cont’d)
Defined Benefits Plans
Defined Contribution Plans
Types of Pension
Plans
Qualified Plans
Nonqualified Plans
© 2008 Prentice Hall, Inc. All
rights reserved.
13–10

11. Retirement Benefits (cont’d)
Types of Defined
Contribution
Plans
401(k)
Plans
Savings and
Thrift Plans
Deferred
Profit-Sharing
Plans
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rights reserved.
Employee
Stock
Ownership
Plans
(ESOPs)
13–11
Cash Balance
Pension Plans

12. Personal Services (cont’d)
Steps for Launching an EAP Program
1
Develop a policy statement.
2
Ensure professional staffing.
3
Maintain confidential record-keeping systems.
4
Be aware of legal issues.
© 2008 Prentice Hall, Inc. All
rights reserved.
13–12

13. Flexible Benefits Programs
• Cafeteria (Flexible Benefits) Approach
 Each employee is given a limited benefits fund
budget to spend on preferred benefits.
 Types of plans
Flexible spending accounts
 Core plus option plans

• Flexible Work Arrangements
 Flextime schedules
 Compressed workweek schedules
 Job sharing
 Work sharing
 Telecommuting
© 2008 Prentice Hall, Inc. All
rights reserved.
13–13

14. KEY TERMS
benefits
supplemental pay benefits
unemployment insurance
sick leave
severance pay
supplemental unemployment benefits
workers’ compensation
case management
health maintenance organization (HMO)
preferred provider organizations (PPOs)
group life insurance
Social Security
pension plans
defined benefit pension plan
defined contribution pension plan
portability
401(k) plan
© 2008 Prentice Hall, Inc. All
rights reserved.
savings and thrift plan
deferred profit-sharing plan
employee stock ownership plan (ESOP)
cash balance plans
Employee Retirement Income Security Act
(ERISA)
Pension Benefits Guarantee Corporation
(PBGC)
vested funds
early retirement window
employee assistance program
family-friendly benefits
flexible benefits plan/cafeteria benefits plan
flextime
compressed work week
job sharing
work sharing
telecommuting
13–14