8.7: Describe voluntary benefits Flashcards
What are voluntary employee benefits?
Benefits employers provide beyond legal requirements to attract, retain, and support employees.
Why do employers offer voluntary benefits?
To enhance compensation packages and stay competitive in attracting talent.
What health-related benefits are typically included in voluntary plans today?
Prescription drugs, dental, optical, and mental health benefits.
What does dental coverage usually include?
A portion of dental costs is covered by insurance, with employees paying the remainder.
What services are typically included under extended health care?
Semi-private/private hospital rooms, prescription drugs, ambulance services, private nursing, out-of-country care, and vision.
What is a growing concern in extended health coverage?
Rising cost of prescription drugs.
What does term life insurance provide?
Death benefits and sometimes accidental death/dismemberment coverage.
What are the two main types of pension plans?
Defined Benefit Plan (DBP) – Specifies a set benefit based on service and earnings.
Defined Contribution Plan (DCP) – Specifies employer contributions; employee’s benefit depends on investment performance.
What is a key risk with DBPs for employers?
The employer is liable if investments underperform and promised benefits can’t be met.
Why are some organizations switching from DBP to DCP?
To avoid liability and uncertainty regarding future funding requirements.
What are multi-employer pension plans?
Plans shared by multiple organizations (e.g., Many Nations Pension Plan or Teamsters Plan) to pool risk and ensure viability.
What benefits fall under “pay for time not worked”?
Statutory holidays, vacation pay, bereavement leave, rest periods, coffee breaks, sick leave, parenting benefits.
How does vacation eligibility vary?
By industry, location, employer size, and years of service.
What trend was seen in some companies?
Some (e.g., Glassdoor, Dropbox) offer unlimited paid vacation days.
What are common statutory holidays in Canada?
New Year’s Day, Good Friday, Canada Day, Labour Day, Christmas Day, and others (varies by province).
What inclusive practice is encouraged regarding holidays?
Allowing employees to substitute statutory holidays for religious observance days.
How is sick leave usually offered?
As a set number of paid sick days, with additional coverage via insurance for long-term disability.
What was the average number of missed workdays due to illness in 2020?
Almost 10 workdays (approx. 2% of the work year).
Who missed more days: men or women?
Women missed nearly 12 days/year, men about 9.
What is the goal of employee wellness programs?
To enhance employee well-being and make work more rewarding.
What do Employee Assistance Programs (EAPs) provide?
Confidential counseling and support for personal/family issues like addiction, stress, financial difficulties.
Why are EAPs valuable to organizations?
They improve employee well-being and productivity by addressing personal issues.
What is the purpose of educational assistance plans?
To help employees stay current in their field and grow within the organization.
What costs may be covered by these plans?
Tuition, books, transportation, and sometimes unrelated courses (depending on policy).
What percentage of Canadian employees are caregivers?
One-third.
What is the estimated cost of lost productivity due to caregiving?
$1.3 billion annually.
What is eldercare?
Providing care to an elderly relative while still working.
What are some solutions employers offer for childcare/eldercare support?
Financial assistance, flexible schedules, onsite childcare, counseling, and family leave.
What do employee recognition programs include?
Long-service awards, “Employee of the Month,” peer recognition systems.
What are the benefits of recognition programs?
They enhance workplace culture, boost motivation, and improve retention.
What are examples of unique or emerging voluntary benefits?
Pet insurance
Free event tickets
Summer boat cruises
Pizza lunches or gift cards
Leadership conversations or informal recognitions
Why are emerging voluntary benefits valuable?
They support engagement, morale, and create a positive work environment.
