13-18
Selecting Employee Benefits
Cafeteria-style
plan Offers employees a set of alternatives from which they can choose the types and amounts of benefits they want What are the advantages and disadvantages of these plans?
13-4
Ch. 13 Learning Objectives
6. 7. 8.
9.
Describe how organizations use other benefits to match employees’ wants and needs. Explain how to choose the contents of an employee benefits package. Summarize the regulations affecting how employers design and administer benefits programs. Discuss the importance of effectively communicating the nature and value of benefits to employee.

13-10
Optional Benefits
Figure 13.2
13-11
Test Your Knowledge

XYZ company has determined that they will have to reduce their benefits costs to stay competitive. Which of the following solutions is not a choice for XYZ?
Figure 13.1
13-7
Benefits Required by Law
Social

Security Act of 1935
Established a system providing old age, survivor’s, disability, and retirement benefits. Federal payroll tax on both the employer and the employee. Benefit payments are based on employee’s lifetime earnings.
Worker’s

Compensation
Benefits provided to persons injured on the job. No-fault liability – protects employers from lawsuits Employees are covered unless injury is self-inflicted or caused by a “willful disregard of safety rules”.
13-5
The Role of Employee Benefits
How
are benefits different from compensation? Why do companies offer benefits?
13-6
Benefits as a Percentage of Total Compensation
13-3
Ch. 13 Learning Objectives
1. 2. 3. 4. 5.
Discuss the importance of benefits as a part of employee compensation. Summarize the types of employee benefits required by law. Describe the most common forms of paid leave. Identify the kinds of insurance benefits offered by employers. Define the types of retirement plans offered by employers.
13-8
Benefits Required by Law
Unemployment

Compensation
A Federal/state payroll tax that funds state unemployment systems. Involuntary unemployment and actively seeking work is required for persons to claim benefit. Employers pay based on their experience rating
Eliminate health coverage b. Reduce the percentage of employees’ Social Security insurance they pay. c. Reduce their unemployment insurance costs by managing their workforce to avoid layoffs. d. Institute a safety program to minimize worker’s compensation costs.
13-9
Benefits Required by Law
Family Medical Leave Act (FMLA) Coverage

Employers with 50 or more employees within a 75-mile radius
Requirements
Employers must allow eligible employees to take up to a total of 12 weeks of unpaid leave to attend to a family or serious medical condition in any within a 12-month period. Employees have the right to continued health benefits and the right to return to their job.
13-21
Video - SAS
1.
2.
SAS is dedicated to providing its employees what brings them the most employment satisfaction. Discuss the impact the employee benefits package offered by the company has on the entire organization. After viewing the video, does employment with an organization like SAS appeal to you? Explain why or why not. Would you find a working environment like SAS to be challenging? Rewarding? Explain.
13-14
Test Your Knowledge

Jakar does not know a lot about investing and wants to ensure he has some retirement income when he is old enough to retire. Agnes plans on changing employers every few years and is interested in investing her own money. Which plan would be best for Jakar and Agnes, respectively?
13-19
Communicating Benefits to Employees
13-20
Video – Working While Sick
1.
2.
Should employees have to go to work when they are sick? How can employers get away with such actions? What types of benefits can an organization offer that may be of value to the employees, creates loyalty, and yet they are not wasted or cost unnecessarily? Explain.
Defined contribution;ined benefit c. Defined benefit; defined contribution d. Defined contribution; non-contributory
a.
13-15
Family Friendly Benefits
Family
Friendly Benefits serve two purposes Assist employees manage work and family roles Increases loyalty to companies who show they care Family leave – paid time off for newborn or adopted children