Benefits and Perquisites Flashcards
Tangible payments or services provided to broad groups of employees to cover issues such as retirement, private health coverage, sick pay/disability schemes, life insurance, and paid time off.
Benefits
These benefits are administered and provided directly by the government, usually paid for through taxes.
Government-Provided
These benefits are provided by employers because the law requires them to do so.
Government-Mandated
Benefits provided voluntarily by the employer may not be totally discretionary; competitive practice or employee relations may put pressure on the employer.
Voluntary or discretionary
These benefits are offered and adjusted compared to the external market.
Market Practice
Benefits are taxed differently in different countries.
Tax treatment of benefits
Provides needed relief from the physical and mental demands of work.
Paid time off (PTO)
Unmarried couples, of the same or opposite sex, who live together and seek economic and noneconomic benefits comparable to those granted to their married counterparts.
Domestic partners
Reflects the total costs of benefits divided by the total payroll costs for the organization.
Benefits Costs as a Percentage of Total Payroll Costs
Percentage that measures the health-care expense per employee for a given fiscal year. Total health-care expenses include employee- and company-paid premiums, stop-loss insurance, and administrative fees.
Health-Care Expense per Employee
Represents the expected increase/decrease in the organization’s health-care expense for a given fiscal year; a comparison of the current health-care expense per employee metric to previous years and projected.
Annual Increase/Decrease in Health-Care Benefit Costs
Employees discuss why they like (or do not like) their current job.
Stay Interviews
Describes all the activities associated with an employee’s tenure in an organization.
Employee Life Cycle (ELC)
Employee Life-Cycle Phases
Recruitment > Integration > Development > Transition
Any part of the selection process that provides an applicant with honest and complete information about a job and the work environment.
Realistic Job Preview (RJP)
Ability to keep talented employees in the organization.
Retention
Ratio of lost days to number of employees
Absence rate
Comparison of budget to actual assignee costs
Accruals
Percentage of applicants who proceed to the next step of the selection process
Applicant yield ratio
Total costs of hiring divided by number hired
Cost per hire
Ratio of employment-related expenses to revenue minus nonemployment expenses
Human capital return on investment
Revenue minus nonemployment expenses divided by number of full-time employees
Human capital value added
Percentage of key talent retained
Key talent retention
Percentage of internal promotions
Promotion pattern
Proportion of selected applicants who are later judged to be successful on the job
Success ratio
Economic benefit of enhanced performance minus costs of developing, producing, and delivering training
Training return on investment
Number of percentage of employees moving across divisions to new jobs
Transfer
Costs associated with separation, vacancy, replacement, and training
Turnover costs
Proportion of exiting employees to all employees
Turnover rates
Costs of substitute labor (temp workers, contractors, outsourcing partners) minus wages and benefits not paid because vacant
Vacancy costs
A health-care offering that has spread around the world. Intended to help identify and resolve employee concerns related to personal matters or work-related issues that, in some instances, can affect health or performance in the workplace.
Employee assistance programs (EAP)
Intended to promote and support the health, safety and well-being of employees.
Wellness programs
A benefit that refers to payments made to employees who are physically unable to perform their jobs because of illness or injury.
Disability insurance
These occur when an employee resign or retires.
Voluntary Termination
These occur typically when employers discharge particular employees for cause.
Involuntary Termatination
Special incidental payments, benefits, or privileges given to individual employees, over and above their regular rewards.
Perquisites
