Strategy for Human Resource Management Lecture 25 HRM 765.

Strategy for Human Resource Management

Lecture 25

HRM 765

Last Lecture

• Employee benefits (Other than pay/wages) • Social security• Old Age Benefit• Domestic Partner Benefits• Health Insurance • Preferred Provider Organizations (Fixed Medical Rate)• The Health Insurance Portability and Accountability Act• Benefits Overview Benefits that are common at large communications

companies.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Human Resource Management Process

3

Topic

Employee Benefits


Retirement Benefits

Defined Benefit Plans

• Plan specifies the Dollar/Rupees benefit workers receive at retirement.

• Usually based on some formula of years of service and average final compensation.


Retirement Benefits

Defined Contribution Plans:

• Employee and employer may contribute to account based on rules established for contributions

• Amount of benefits depends on success of account investments.


Retirement Benefits

Money Purchase Pension Plan

• Type of defined contribution plan

• Organization commits to depositing fixed amount of money or percentage of employee’s pay annually.


Retirement Benefits

Profit-Sharing Plans

• Company amount contributed depends on profit level in the organization.

• Contribution is optional, not required.


Paid Time Off

Vacation and Holiday Leave – Vacation time is usually related to the length

of time on the job. – Some companies also allow personal days

that can be used for any reason.


Paid Time OffDisability Insurance Programs• Provides salary continuation for:

– Short-term disabilities (sick leave) – Long-term disabilities (coverage

usually effective after 6 months). • Some companies provide

financial incentives to employees to not use their sick leave.

• Long-term disability plans usually replace a portion of the employee’s salary, often 60 percent.


Survivor Benefits• Benefit payable to a designated

beneficiary upon the Employee's death.

• Usually are two types: – contributory – non-contributory

• In non-contributory the employer pays the total cost of the benefit.


Survivor Benefits

Group Term Life Insurance:

• Benefit is usually based on one to five times annual rate of pay.

Travel insurance:

• Life insurance for business travel-related deaths.


The service side of benefits

– social and recreational events– employee assistance programs– housing– tuition reimbursement– uniforms– company-paid transportation– parking

• Employers often can provide services at no cost or at a significant reduction from the usual cost.


An Integrative Perspective on Employee Benefits

• Flexible benefits programs allow employees to choose which benefits they want and help to keep costs down.


An Integrative Perspective on Employee Benefits

Modular plans:

• Employees choose a pre-designed package of benefits from several options.

Core-Plus Options Plans

• Employees given core coverage (e.g. medical, life, disability) with option to select other benefits.


Benefits in different countries


Summary Vacation and Holiday Leave Profit Sharing plansDisability Insurance Programs

contributory

non-contributory

– Social and recreational events, – employee assistance programs, – housing, – tuition reimbursement, – uniforms, – company-paid transportation,

Modular plans: • pre-designed package.

Core-Plus Options Plans • option to select other benefits. • Benefits in different countries


Strategy for Human Resource Management Lecture 25 HRM 765.

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Transcript of Strategy for Human Resource Management Lecture 25 HRM 765.