Human Resource

Management
1

ELEVENTH EDITION

GARY DESSLER

Part 4 | Compensation

Chapter
13

2008 Prentice Hall, Inc.

All rights reserved.

Benefits and Services

PowerPoint Presentation by Charlie Cook
The University of West Alabama

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

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Benefits
Types of Employee
Benefits

Supplemental
Pay

Insurance
Benefits

2008 Prentice Hall, Inc. All

Retirement
Benefits

Employee
Services

133

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

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Pay For Time Not Worked

Vacations and
Holidays

Unemployment
Insurance

Sick
Leave

Supplementa
l Pay
Benefits

Severance
Pay

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Parental
Leave

Supplemental
Unemployment
Benefits

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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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Trends in Health Care Cost Controls

Cost-Control
Trends

Communication,
Involvement, and
Empowerment

Premiums and
Co-Pays

Prevention
Programs

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Health Savings
Accounts

Claim
Audits

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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

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Retirement Benefits (contd)

Policy Issues In
Pension Planning

Membership
Requirements

Benefit
Formula

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Plan
Funding

Vesting

139

Retirement Benefits (contd)

Defined Benefits Plans

Defined Contribution Plans

Types of Pension
Plans
Qualified Plans

Nonqualified Plans

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Retirement Benefits (contd)

Types of Defined
Contribution
Plans

401(k)
Plans

Savings and
Thrift Plans

Deferred
Profit-Sharing
Plans

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Employee
Stock
Ownership
Plans
(ESOPs)

Cash Balance
Pension Plans

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Personal Services (contd)

Steps for Launching an EAP Program
1

Develop a policy statement.

Ensure professional staffing.

Maintain confidential record-keeping systems.

Be aware of legal issues.

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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

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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

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

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