Docstoc

WS_16

Document Sample
WS_16 Powered By Docstoc
					    Benefits and Services

 What   Happened
 The imposition of wage ceilings during
  World War II
 Decline of paternalism
 Union pressure
 Tax law
 Public policy shifts of cost from
  government to the private sector

                                           1
        Benefits and Services

   Once upon a time "fringe benefits"
    were of marginal importance. In 1929
    benefits were approximately 3 percent
    of wages and salaries.
   By 1991 benefits had risen to be 38.2
    percent of wages and salaries.
   Between these two periods wages and
    salaries rose by a factor of 55 while
    benefits increased by a factor of 716.
                                            2
    Benefits And Services

 What   Do Employers Expect?
 Improved productivity
 Increased job satisfaction
 Improved quality
 Reduction in turn-over and
  absenteeism
 Enhanced sense of security
                                3
       Benefits and Services

   Benefits and services become
    complicated very quickly because of
    the number of available components,
    the variety of optional features within
    a component, and their legal and
    financial interactions.


                                          4
    Benefits and Services

 Employee   Benefits
 Those compensation components
 made available to employees that
 provide:
 Protection in case of health and
  accident-related problems, and
 Income at some future date or
  occasion.
                                     5
         Employee Services

   Compensation components that
    contribute to the welfare of the
    employee by filling some kind of
    demand.
    Total employee benefits as a
     percent of payroll           39.2
    Legally required payments         8.9
    Retirement and savings            6.0
                                             6
    Employee Services

Life and death insurance    0.5
Medical benefits           10.4
Paid rest periods           2.2
Pay for time not worked    10.4
Miscellaneous benefits      0.9

                                   7
    Benefits Planning And Design
                Criteria
   Minimum age and length of service.
   Employee contributions an vesting
    schedule for pension plan.
   Coinsurance, deductible, ceiling
       requirements, and dual coverage for
    medical insurance.
   Options to be included in the medical plan.
   What employees will be covered, and what
    about retirees and dependents.
                                               8
           Critical Issues In
           Benefit Planning
   Current and future role of government-
    mandated benefits.
   Employee demographics and employee
    preferences.
   Possible use of self-funding and third-
    party administrator.
   Employer ability to pay and employee
    contributions.
   Monitoring and auditing programs.
                                              9
       Benefits Communication

   Benefits became viewed as entitlement
    and employers were loosing the
    motivational value of their programs.

   The response was the development of
    sophisticated communication programs to
    inform employees of how much they were
    receiving through their benefits programs.


                                             10
    Basic Benefits Communication

   New employees receive
    oral and visual
       presentations of the
    benefit program, and an

   Annual benefit statement
    that provides a
       description of the
    employee's benefit
    account.
                                   11
Basic Benefits Communication

   The employee has access to in-
    house benefit consultant services.
   Ad-hoc employee meetings to cover
    new benefits, changes, and critical
    issues.
   On-going communication of benefit
    info.

                                     12
      Employee Benefits

Employee Benefits Can Be Classified
As:
  Disability Income Continuation
  Loss-of-Job Income Continuation
  Deferred Income
  Spouse or Family Income Continuation
  Health and Accident Protection
  Property and Liability Protection
  Perquisites                         13
      Disability Income

 Short-Term Disability
 L-T Disability
 Worker's Compensation
 Sick Leave
 Non-Occupational Disability
 Travel Accident Insurance
 Supplemental Disability Insurance
                                      14
          Disability Income

   Accidental
    Death And
    Dismemberment
   Retirement
    Plans
   T-P Disability
   Social Security
                              15
        Loss-Of-Job Income

   Unemployment Insurance (Ui)
   Supplemental Unemployment Benefit
    Insurance (Sub)
   Guaranteed Annual Income (Gai)
   Guaranteed Income Stream (Gis)
   Severance Pay
   Job Contract


                                        16
            Deferred Income

   Social Security
   Qualified Retirement
    Plan
   Pension / Profit
    Sharing / Stock
    Bonus
   Simplified Employee
    Pension Plans (Sep)
                              17
        Deferred Income

 Keogh Plans
 Supplemental
  Executive
  Retirement Plans
 Supplemental
  and Executive
  Group Life
  Insurance Plans

                          18
    Spouse and Family Income
            Protection
 Life Insurance
 Retirement Plans
 Social Security
 Workers Comp
 Tax-Sheltered Annuity
 AD & D
 Travel Accident Insurance
 Health Care Coverage
                               19
Health and Accident Protection

   Basic Medical,      In-House Medical
    Hospital, and        Services
    Surgical            HMO's
   Major Medical
                        PPO's
   Dental
                        Social Security
   Visual               (Medicare)
   Comprehensive       Post-Retirement
    Physical             Medical
   Hearing Aid
                        Workers' Comp
                                            20
         Property and Liability
              Protection

   Group Auto / Home
    / Legal
   Group Umbrella
    Liability
   Employee Liability
   Fidelity Bond
    Insurance


                                  21
             Employee Services

   Pay For Time Not
    Worked
    Holidays / Vacations /
     Jury Duty / Sick Leave
    Election Official /
     Witness In Court
    Military Duty / Funeral
     Leave / Marriage
     Leave

                                 22
          Employee Services

   Illness In Family /
    Paternity Leave /
   Wellness Leave /
    Time Off To Vote /
    Give Blood
   Grievance And
    Contract
    Negotiations
   Lunch, Rest, And
    Wash-up Periods
                              23
    Time Off From Work Without
                Pay

   The family and medical leave act
    passed in 1993 granted up to 12
    weeks of unpaid leave for a variety of
    purposes, including a worker's own
    illness or that of a spouse or a
    parent.


                                         24
    Income Equivalent Payments and
           Reimbursements

   Charitable              Elderly Care
    Contributions
                            Parking
   Counseling (Legal,
    Financial,              Subsidized Food Service
    Psychiatric)            Travel Expenses
   Education
    Subsidies               Relocation Expense

   Child Adoption          Emergency Loans

   Child Care              Credit Union
                                                  25
          Costing Benefits
   Costing is an essential prerequisite to any
    worthwhile benefits communication
    program.
   Four methods are available for costing
    benefits and services:
    Annual cost of benefits and services
     for all employees.
    Cost per employee per year.
    Percentage of payroll
    Cents per hour
                                              26
    Flexible Compensation / Benefits
            (Cafeteria Plans)

   Originally the flexible compensation /
    benefits plan was designed to enable
    senior executives, top professionals,
    and managers to choose individually
    many of their benefits and services.



                                         27
Flexible Compensation / Benefits
         (CafeteriaPlans)

   However, organizations are
    looking to the flex plans today as
    an opportunity to:
     Contain the cost of benefits
     Satisfy employee preference
     Provide choice


                                         28
      Flexible Compensation /
              Benefits

   Flex plans are designed to
    accomplish four goals that are
    considered fundamental to the
    development of a successful
    program. It increases or improves:
    Appreciation of the interest and
     desire of the employer to improve
     the quality of life of each
     employee.
                                         29
   Flexible Compensation /
           Benefits

Loyalty and
 Motivation.
Understanding
 of Value of
 Each Benefit.
Understanding
 Of Value Of
 Total Program
                             30
      Establishing A Flex Plan

   Three Major Groups
    Must Participate In the
    Design of a Flex Plan:

    Senior
                              GOALS
     Management for
     setting objectives
     and determining
     policy.

                                      31
 Establishing A Flex Plan

Compensation and human
 resource specialists for guiding the
 development of and assisting in the
 construction of a program that
 meets organizational objectives
 and demands of the employees.
Employees for providing initial
 inputs about what should be
 included in a benefits program.
                                    32
Employee Spending Accounts

   This is a tax-free reimbursement
    account designed to moderate or
    possibly reduce the rising cost of
    benefits for the employee while at
    the same time giving the employer
    greater control over the benefit
    expenditures.

                                         33
Employee Spending Accounts

   Employee are allowed to convert a
    portion of taxable wages or salaries
    into nontaxable dollars to be used to
    pay for specific benefits.




                                        34
Employee Spending Accounts

   While reducing their taxable income,
    they can use the funds to pay for:
     Uncovered medical expenses.
     Premiums for health, life, and
      disability insurance.
     Dependent care assistance.
     Legal services.
     Personal financial planning.
                                       35
      Benefits in the 90's
 EAP’s
 Adoption
  Expenses
 Child Care
  Assistance
 Paternity Leave
 Long-Term Care
 Flex Hours
 Work-At-Home
                             36

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:10/17/2012
language:English
pages:36