discretionary employee benefits , management homework help

User Generated

zvvxr

Business Finance

Description

Discuss your views about whether discretionary employee benefits should be an entitlement or something earned based on performance.

Unformatted Attachment Preview

STRATEGIC COMPENSATION A Human Resource Management Approach Chapter 9: Discretionary Benefits Copyright © 2015 Pearson Education, Inc. 9-1 Learning Objectives 1. Give an overview of discretionary benefits. 2. List the three broad components of discretionary benefits. 3. Identify and define one example of income protection programs, paid time off, and services. 4. Explain the benefits and costs of discretionary benefits. Copyright © 2015 Pearson Education, Inc. 9-2 Learning Objective 1 Give an overview of discretionary benefits. Copyright © 2015 Pearson Education, Inc. 9-3 Discretionary Benefits Overview As of March 2012: • $13,000 per employee, on average • 21.5% of total payroll costs, on average Copyright © 2015 Pearson Education, Inc. 9-4 Discretionary Benefits Overview Discretionary benefits • Are offered at the will of each company • Employees view them as entitlements • Employers reinforce the entitlement mentality by awarding them regardless of performance Copyright © 2015 Pearson Education, Inc. 9-5 Learning Objective 2 List the three broad components of discretionary benefits. Copyright © 2015 Pearson Education, Inc. 9-6 Discretionary Benefit Types • Protection programs: provide family benefits, promote health, and guard against income loss caused by such catastrophic factors as unemployment, disability, or serious illnesses • Paid time-off: provides employees time off with pay for such events as vacation • Services: provide enhancements such as tuition reimbursement and day care assistance to employees and their families Copyright © 2015 Pearson Education, Inc. 9-7 Learning Objective 3 Identify and define one example of income protection programs, paid time off, and services. Copyright © 2015 Pearson Education, Inc. 9-8 Income Protection Programs • Disability insurance: includes both shortand long-term disability care • Life insurance: protects employees’ families by paying a specified amount to an employee’s beneficiaries upon the employee’s death • Pension programs: income to employees and their beneficiaries during some or all of their retirement Copyright © 2015 Pearson Education, Inc. 9-9 Short-Term Disability • Less than six months duration • Unable to perform job • Benefit: 50% to 100% of pretax income • Conditions – Recovery from injuries – Recovery from surgery – Treatment of an illness requiring any hospitalization – Pregnancy Copyright © 2015 Pearson Education, Inc. 9-10 Long-Term Disability • Six months to life • Unable to perform any job qualified for • Benefit: 50% to 70% of pretax pay • 6 to12 month waiting period • Other benefits used first Copyright © 2015 Pearson Education, Inc. 9-11 Life Insurance • Pays employees’ beneficiaries upon employees’ death • May also include – Accidental death – Dismemberment benefits Copyright © 2015 Pearson Education, Inc. 9-12 Life Insurance Types • Term life insurance: provides protection to employees’ beneficiaries only during a limited period based on a specified number of years • Whole life insurance: does not terminate until payment is made to beneficiaries • Universal life insurance: provides protection to employees’ beneficiaries based on the insurance feature of term life insurance Copyright © 2015 Pearson Education, Inc. 9-13 Retirement Programs • Provide income to employees and their beneficiaries during some or all of their retirement Copyright © 2015 Pearson Education, Inc. 9-14 Paid Time Off Policies • • • • • • • Holidays Vacation Sick leave Personal leave Jury duty Funeral leave Military leave • Clean-up, preparation, or travel time • Rest period “break” • Lunch period • Integrated time off policies • Sabbatical leave • Volunteerism Copyright © 2015 Pearson Education, Inc. 9-15 Integrated Paid Time Off Policies • Combine holiday, vacation, sick leave, and personal leave policies into a single paid time off policy • Provide individuals the freedom to schedule time off without justifying the reasons Copyright © 2015 Pearson Education, Inc. 9-16 Sabbatical Leaves • Paid time off for professional activities • Common in college and university settings – Faculty members who meet minimum service requirements • Outside academia  Usually limited to professional and managerial employees Copyright © 2015 Pearson Education, Inc. 9-17 Volunteerism Causes • Improving literacy • Providing comfort to terminally ill patients • Serving food at shelters for individuals who cannot afford to feed themselves • Serving as a mentor to children who do not have one or more parents • Spending time with elderly or disabled residents of nursing homes who may no longer have living friends or family Copyright © 2015 Pearson Education, Inc. 9-18 Services • • • • • • • • • • • • Employee assistance programs Family assistance programs Flexible scheduling and leave Day care Tuition reimbursement Transportation services Outplacement assistance Wellness programs Smoking cessation Stress management Weight control and nutrition programs Financial education Copyright © 2015 Pearson Education, Inc. 9-19 Employee Assistance Programs • Provided for: - Alcohol or drug abuse - Domestic violence - Emotional impact of AIDS and other diseases - Clinical depression - Eating disorders Copyright © 2015 Pearson Education, Inc. 9-20 Advantages of EAPs for Employer Reduced costs: - Turnover - Absenteeism - Medical costs - Unemployment insurance rates - Workers’ compensation rates - Accidents - Disability insurance Copyright © 2015 Pearson Education, Inc. 9-21 Family Assistance Programs • Help employees provide elder care and child care • Making referrals to on-site child or elder care centers • Company-sponsored day care programs Copyright © 2015 Pearson Education, Inc. 9-22 Flexible Scheduling • Compressed work weeks (e.g., 10-hour days or 12-hour days) • Flextime • Job sharing Copyright © 2015 Pearson Education, Inc. 9-23 Day Care • Companies subsidize child or elder day care in community-based centers • Elder care: self-help, meals, and entertainment activities for the participants • Child care: supervision, preschool preparation, and meals Copyright © 2015 Pearson Education, Inc. 9-24 Tuition Reimbursement • Promotes employee education • Full or partial • Not the same as pay for knowledge Copyright © 2015 Pearson Education, Inc. 9-25 Outplacement Assistance Programs Required due to: • Layoffs due to economic hardship • Mergers and acquisitions • Company reorganizations • Changes in management • Plant closings or relocation • Elimination of specific positions, often the result of changes in technology Copyright © 2015 Pearson Education, Inc. 9-26 Outplacement Assistance Services • • • • • Personal counseling Career assessments and evaluations Training in job search techniques Resume and cover letter preparation Interviewing techniques • Training in the use of basic workplace technology Copyright © 2015 Pearson Education, Inc. 9-27 Wellness Programs Emphasize, in order to keep health costs low: • Weight loss and nutrition • Stress management • Smoking cessation • Cardiovascular fitness Copyright © 2015 Pearson Education, Inc. 9-28 Learning Objective 4 Explain the benefits and costs of discretionary benefits. Copyright © 2015 Pearson Education, Inc. 9-29 Discretionary Benefits Costs and Benefits • Promotes competitive advantage • Promotes employee behaviors with strategic value • Attracts quality employees • Meets the needs of a diverse workforce • Discretionary benefits can distinguish a company from its competition Copyright © 2015 Pearson Education, Inc. 9-30 Discretionary Benefits Costs and Benefits • Discretionary benefits have tax advantages – Can translate into cost savings – Companies pursuing differentiation strategies might invest more in research and development – Companies pursuing lowest cost strategies might be able to lower prices Copyright © 2015 Pearson Education, Inc. 9-31 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2015 Pearson Education, Inc. 9-32
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

1
Running head: DISCRETIONARY EMPLOYEE BENEFITS

Discretionary Employee Benefits
Name:
Institution:
Course Code:
Professor:

2
Running head: DISCRETIONARY EMPLOYEE BENEFITS

Introduction
Discretionary employee benefits refer to the rewards that are given to employees, not
basically in cash but in other ways. These benefits are different and are not defined by the
government but are decided upon by individual companies.
...


Anonymous
Awesome! Made my life easier.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags