Please enable JavaScript.
Coggle requires JavaScript to display documents.
CHAPTER 12: THE BENEFIT DETERMINATION PROCESS (Why The Growth in Employee…
CHAPTER 12: THE BENEFIT DETERMINATION PROCESS
Factors Influencing Choice of Benefit Package
Employer Factor
-Relationship with total compensation cost
-Costs relative to benefits
-Competitor offerings
-Role of benefit in attraction, retention, motivation
-Legal requirements
Employee Factor
-Equity(fairness, historically and in relationship to what others receive
-Personal needs as linked to age, sex, marital status, umber of dependents
What are Employee Benefits?
-That part of total compensation package, other than pay for time worked, provided to employees in whole or in part by employer payments (e.g. life insurance, pension, vacation
Why The Growth in Employee Benefits?
Government Impetus
Unions
Employer Impetus
Cost effectiveness of Benefits
Wage and price control
Benefits planning and design issues
How to deal with undesirable turnover
Integrating benefits with other compensation components
How to attract good employees
Strategies for ensuring external competitiveness and adequacy of benefits
whether employee benefits are cost justified
Benefits administration Issues
Who should be protected or benefited
How much choice should employees have among an array of benefits?
-Standard benefit package
-Cafeteria style or flexible, benefits plan
-Market based or customer driven, health care
How should benefits be financed?
-Noncontributory
-Contributory
-Employee financed
Are your benefits legally defensible
Administering the Benefits Program
Communicate about the benefits program
Elements of an effective communications package:
-Company must spell out its benefit objectives and ensure that communications achieve the objectives
-Match the message with the appropriate medium: use of intranet (organizational online web, use of the employee handbook
Claim Processing
-Arises when a employee asserts that a specific event has occured and demands that the employer fulfill a promise of payment
-The claims processor must: determine whether the act has occured
-Determine of the employee is eligible for the benefit
-Calculate the payment level
Cost Containment
-Probationary periods
-Benefit limitations
-Copay
-Administrative cost containment