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1、What is a benefit?oA benefit is an indirect reward given to an employee or group of employees for organizational membership. oBenefits often include retirement plans, vacations with pay, health insurance, educational assistance, and many more programs.oBenefits are a vital part of the total compensa

2、tiontotal compensation: $26.86, benefits: $8.04BENEFITS AND HR STRATEGYoChallenge:to balance the growing cost of benefits and the use of them in accomplishing organizational goalsoBenefits are a vital part of the total compensationoBenefits approach depends on many factorsStrategic Benefits Consider

3、ationsoCompetitive AdvantageoWorkforce Attraction and RetentionoBenefits ManagementoBenefits CommunicationBenefits as Competitive Advantageoaid recruiting and retention, impact organizational performance, and meet legal requirementsoreinforcing the company philosophy of social and corporate citizens

4、hipomeet responsibilities to employeesGlobal BenefitsoBenefits vary from country to country.oinfluence employees decisions about which particular employer to work for, whether to stay with or leave an employer, and when to retireorepresent a somewhat more valuable reward to employees than an equival

5、ent cash paymentRole of Benefits for Workforce Attraction and RetentionBENEFITS MANAGEMENT AND COMMUNICATIONSEFFECTIVE BENEFITS MANAGEMENToBenefits DesignoBenefits AdministrationoTechnology AdministrationoBenefits MeasurementoCost-Control EffortsoCommunication to Employees How much total compensatio

6、n, including benefits, can be provided? What part of the total compensation of individuals should benefits constitute? Which employees should be provided which benefits? What expense levels are acceptable for each benefit offered? What is being received by the organization in return for each benefit

7、? How flexible should the package of benefits be?Benefits DesignoPart-Time Employee Benefits?oFlexible Benefits or Standardized Benefits?Flexible BenefitsoDefinition:program that allows employees to select the benefits they prefer from groups of benefits established by the employer.oProblems:an inap

8、propriate benefits package may be chosen by an employee;only higher-risk employees select and use certain benefits.Flex plans will likely continue to grow in popularity.obenefits administration responsibilities can be split between HR specialists and operating managersoHR specialists play the more s

9、ignificant role, but managers must assume responsibility for some of the communication aspects of benefits administration.HR and Benefits AdministrationTypical Division of HR Responsibilities: Benefits AdministrationHR Technology and Benefitsocommunicate benefits information, conduct employee benefi

10、ts surveys, and facilitate benefits administration.odecrease expenses, increase positive communication, and effectively connect people across many different HR functions, including benefits managementBenefits MeasurementMajor means:reducing or dropping benefitscost sharingusing wellness programsaddi

11、ng employee health education effortschanging prescription drug programs Benefits Cost ControloIgnorance of the values and costsoemployees own decisions about benefits and generalized health.oBenefits communication and satisfaction of employees with their benefits are linked.timing and frequency, the

12、 communication sources, and the specialized content.Benefit statementBenefits CommunicationTYPES OF BENEFITSHow the Typical Benefits Dollar Is SpentSECURITY BENEFITSoWorkers Compensation provides benefits to persons who are injured on the job.oUnemployment Compensation An employee who is out of work

13、 and is actively looking for employment normally receives up to 26 weeks of pay, at the rate of 50% to 80% of normal pay.oSeverance Pay offered by employers to individuals whose jobs are eliminated or who leave by mutual agreement with their employers.HEALTH CARE BENEFITSRate of escalation rate of i

14、nflation, change in earnings, increase in GDP“Why are we offering these benefits anyway?”oUninsured WorkersoRetirees Health Benefits CostsIncreases in Health Benefits CostsControlling Health Care Benefits CostsoChanging Copayments and Employee ContributionsoUsing Managed Care preferred provider orga

15、nization (PPO)health maintenance organization (HMO)oMini-Medical PlansoHealth plan that provides employer financial contributions to employees to help cover their health-related expenses. (CDH plan)othe increases in health care benefits costs are shifted to employeesothe focus of controlling health

16、care usage falls on employeesConsumer-Driven Health PlansComponents of Consumer-Driven Health PlansoHealth Savings Accounts(HSA):): High-deductible health plans with federal tax advantages.oHealth Reimbursement Arrangements(HRA):health reimbursement account/personal care account Health plan in which

17、 the employer sets aside money in a health reimbursement account to help employees pay for qualified medical expenses.oapproaches designed to help employees understand why health care costs are increasing and what they can do to control them. Employee Reactions to Cost-Control Efforts:negativeoshari

18、ng information and having a continuing and effective benefits communications plan!Health Care Preventive and Wellness EffortsoCOBRA Provisions The Consolidated Omnibus Budget Reconciliation ActoHIPAA Provisions The Health Insurance Portability and Accountability ActHealth Care LegislationOverview of C

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