Course : MGMT6012005/HR Management

Effective Period : September 2022

Benefits and Services

Session 14
Thank you
 References
Human Resource Management
• Sixteenth Edition, Global Edition
 LEARNING OBJECTIVES
• Explain various type of benefits
• Outline the main employees’ services
benefits
• Explain how benefits can improve
engagement, productivity, and
performance
Introduction: The Benefits Picture Today
• Benefits
– the indirect financial and nonfinancial payments employees
receive for continuing their employment with the company
and which employers use to attract, recognize, and retain
workers
– Employee benefits account for about 31% of total
compensation
Pay for Time Not Worked
• Supplemental Pay Benefits
• Very Costly
• Include holidays, vacations, jury duty, funeral leave, military
duty, personal days, sick leave, sabbatical leave, maternity
leave, and unemployment insurance payments for laid-off or
terminated employees
Unemployment Insurance
• Unemployed through no fault of their own
• Unemployment tax rates are rising
• Employers spend thousands unnecessarily
Vacation and Holidays
• About 90% of full-time workers and 40% of part-timers get paid
holidays
• Average of eight paid holidays off
• Average American worker:
– 9 days vacation after one year
– 14 days vacation after 5 years
– 17 days vacation after 10 years
Sick Leave
• Provides pay to employees when they’re out of work due to
illness
• Cost reduction tactics
– Pooled paid leave plans (“banks”)
– Repurchase unused sick leave at end of year
Severance Pay
• A one-time separation payment, when terminating an
employee
– Reducing the chances of litigation
– Comply with ERISA
Supplemental Unemployment Benefits
• Supplemental unemployment benefits are cash payments that
supplement the employee’s unemployment compensation, to
help the person maintain his or her standard of living while out
of work.
Insurance Benefits (1 of 2)
• Workers’ compensation
• Health insurance
Worker’s Compensation
• The income and medical benefits provided in work-
related accidents to the victims or their dependents,
regardless of fault
– monetary or medical, or a combination.
• Determining benefits
• Controlling costs
Hospitalization, Health, and Disability
Insurance
• Coverage
– Patient Protection and Affordable Care Act
• Health Maintenance Organization (HMO)
• Preferred Provider Organization (PPO)
• Mental Health Benefits
Trends in Employer Health-Care Cost
Control
• Health-care costs control is one big way HR can improve
profits
– Measuring and auditing health care costs
• Other cost-control options
– HS As
– Make sure employees know the costs
• Wellness programs
– Clinical prevention
– Incentives
Insurance Benefits (2 of 2)
• Long-term care
– Such as nursing assistance in old age
• Life insurance
– Accidental death and dismemberment coverage
• Benefits for part-time and contingent workers
Retirement Benefits: Social Security
• Three types of benefits:
– Retirement Benefits
– Survivor or Death Benefits
– Disability
• Medicare
– provides health services to people age 65 or older
Retirement Benefits: Pension Plans
• Provide income to individuals in their retirement, and just over
half of full-time workers participate in some type of pension
plan at work
– Contributory v s Non-Contributory
ersu

– Defined Contribution v s Defined Portability

ersu
Discuss
• Find out and discuss about the regulation in
Indonesia regarding the mandatory benefits
should be provided by employers
Personal Services and Family-Friendly
Benefits
• These include
– Personal services (such as legal and personal counseling),
– “Family-friendly” services (such as child-care facilities)
– Educational subsidies
– Executive perquisites
Personal Services
• Voluntary benefits
• Employee Assistance Programs (EAPs)
– Provide counseling and advisory services for personal
problems that may adversely affect the employee’s work
life
Family-Friendly (Work-Life) Benefits
• Child care
– Sick child benefits
• Educational subsidies
• Other personal services benefits
Flexible Benefits Programs
Figure 13-4 One Page from Online Survey of Employees’ Benefits Preferences

Source: Reprinted with permission from GrapeVine solutions.

The Cafeteria Approach
Types of plans
• Flexible spending
• Core plus options
Flexible Work Schedules
• Flextime
• Telecommuting
• Compressed Workweek
• Job Share
• Work Share
Discuss
• What flexible benefits do you think can
motivate you to perform better?
.

THANK YOU