Human Resource

Management

Lecture 8
Benefits and Services
Huyen Nguyen
Nov 2020

Chapter
Chapter 77Topic
Strategic
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 Learning objectives

1. Define each of the main pay for “time not worked”

benefits
2. Describe each of the main insurance benefits
3. Discuss the main retirement benefits
4. Outline the main employees services benefits
5. Explain the main flexible benefits programs

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 Types of benefits plans

Insurance
Supplemental benefits (e.g.
pay benefit workers’
(e.g.. Sick leave, compensation)
vacation leave)
Types of
benefit
plans
Employee
Retirement
services (e.g.
benefits (e.g.
child-care
pension)
facilities)

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 Benefits
´ Benefits: indirect financial and non-financial payments employees
receive for continuing to work in their company.
´ There are many benefits and we can classify them as below:
1. Pay for time not worked (supplemental)
2. Insurance benefits
3. Retirement benefits
4.Services and family-friendly benefits

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 Pay for time not worked

´ Pay for time not worked

- Holidays
- sick leave
- unemployment insurance (severance)

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 Insurance benefits
´ Workers’ compensation
´ Hospitalization, health, and disability insurance
´ Pregnancy discrimination

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 Retirement benefits

´ Include pension and social security plans

´ Pension plans: provide a fixed amount when employees
reach a predetermined retirement age or when they can
no longer work due to disability.
´ Social security plans: provide income for retirement.

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Services and family-friendly benefits
´ Employer provide other services such as personal
services, educational subsidies, transport, food, and
job-related-friendly services.
´ Personal services: social and recreational facilities
´ Transport and food: provide subsidized employee
transport, let employee buy meals, snacks, or drinks
at a low prices at canteens.
´ Education subsidy: such as tuition refunds for
employees to continue or complete their education.
´ Family-friendly benefits: childcare, elder care, fitness
facilities

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 Flexible Benefits Program

´ Some benefits that are attractive to one employee

may not be attractive to others
´ It is useful to survey employee’s benefits preferences
and needs.
´ Cafeteria plan: a plan with numerous benefits from
which employees may choose according to their
personal preference.

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 Flexible program

´ Advantages:
- Employees can choose the package that suits them
best
- Easier to introduce new benefits since the company
does not have to lock them in for all employees.
´ Disadvantages:
- Additional administration cost as the company has to
periodically update each staff’s package.

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 Flexible Work Arrangements
´ Flextime: employees can decide their own starting and stopping
hours. Ex: they may work from 7.00am to 3.00 pm, or from 11.00
am to 7.00 pm.
´ Compressed workweek: airline pilots do not work 5-day, 40-hour
workweeks.
´ Job sharing: allows 2 or more persons to share a single full-time
job (may be one working in the morning and the other in the
afternoon).
´ Teleworking: employees work from home with computers,
phones, and internet to transmit letters, data, and completed
work to the main office.

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Chapter 7Topic
Strategic
1 An Pay
introduction
Plan andtoIncentive
HRM Plans