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Providing Employee Benefits

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Those responsible for developing and implementing the employee benefits program and containing its costs should be guided by the fundamental functions and principles of management in setting the objectives of the program, assigning responsibilities, determining employee needs, communicating the benefits programs to employees, controlling the costs of the employee benefits, and investigating recent developments in benefits programs

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Providing Employee Benefits

  1. 1. Chapter 11 PROVIDING EMPLOYEE BENEFITS
  2. 2. WHY COMPANIES PROVIDE EMPLOYEE BENEFITS • To attract and retain qualified workers • To motivate workers to become more productive • To meet the employees’ needs for job security and job satisfaction • To reward employees who improve their performance and increase their productivity • To lessen the company’s tax burden.
  3. 3. NATURE AND EXTENT OF EMPLOYEE BENEFITS 1) Legally required payments 2) Medical and medically related benefits 3) Retirement and savings plan benefits 4) Life insurance and death benefits 5) Payments for time not worked 6) Paid rest periods, work breaks, and so forth 7) Miscellaneous benefits
  4. 4. LEGALLY REQUIRED PAYMENTS • OASDHI BENEFITS, this program was planned by the federal government to provide economic security for workers and their families. • UNEMPLOYMENT COMPENSATION BENEFITS, to provide funds at the state level for compensating unemployed workers in that state during periods of temporary unemployment. • WORKERS’ COMPENSATION BENEFITS, is a state insurance program designed to protect employees and their dependents against losses due to injury or death incurred during the worker’s employment. • STATE DISABILITY BENEFITS, this benefits are paid workers who are absent from their jobs because of illness, accident, or disease not arising out of their employment.
  5. 5. RETIREMENT AND SAVING PLAN BENEFITS • Retirement Income may provide for early retirement, such as between ages 62-65, with a lifetime monthly allowance based on the worker’s accrued benefits • Individual Retirement Account, is a pension plan that is established and funded by the individual employee • Simplified Employee Pension Plan, employers may make contributions to individual retirement accounts on behalf of their employees • Vesting, is the process of conveying to employees the right to share in a retirement fund in the event they are terminated before the normal retirement age • Employee Retirement Income Security Act, provides workers with a vested right to their retirement income benefits and assurance of well-managed retirement plans • 401(k) Retirement, after employees have at least 1year of service, they can shelter a certain portion of their salaries from taxes each year and watch the deferred income grow until time of retirement
  6. 6. PAYMENTS FOR TIME NOT WORKED • Vacations • Holidays • Sick leave • Parental leave • Jury duty • Time off to vote • Military Training Leave • Personal Leave • Funeral Leave • Rest Periods and Work Breaks
  7. 7. AWARDS, ALLOWANCES, AND OTHER EXTRA PAYMETNS • Educational Assistance • Christmas Bonuses • Relocation Expenses Allowances PROGRAMS AND SERVICES PROVIDED EMPLOYEES • Food services • Company Medical Facilities • Social and Recreational Programs • Physical Wellness Programs • Career Apparel • Parking Space • Counseling and Referral Programs • Financial Services • Legal Service Plans
  8. 8. Those responsible for developing and implementing the employee benefits program and containing its costs should be guided by the fundamental functions and principles of management in setting the objectives of the program, assigning responsibilities, determining employee needs, communicating the benefits programs to employees, controlling the costs of the employee benefits, and investigating recent developments in benefits programs

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