CH11 Flashcards
Question / Prompt
Answer
What are employee benefits?
Indirect compensation provided to employees to improve work-life balance and well-being.
What are the two primary factors that determine an effective benefits program?
1) Selection of benefits that meet employee needs and strategic goals. 2) Efficient administration and communication.
What are the legally required employee benefits in Canada?
- Canada & Quebec Pension Plans (CPP/QPP)
- Employment Insurance (EI)
- Workers’ Compensation Insurance
- Provincial medical services
Define a Flexible Benefits Plan (Cafeteria Plan).
A system where employees receive credits to choose benefits that suit their needs.
List three discretionary benefits employers often provide.
1) Health & dental insurance
2) Paid time off
3) Retirement plans
What are the two types of pension plans?
- Defined Benefit Plan (DB): Employer guarantees a set payout upon retirement.
- Defined Contribution Plan (DC): Employer contributes a fixed amount, but the final payout depends on investment performance.
What is the difference between a contributory and a non-contributory pension plan?
- Contributory: Both employer and employee contribute.
- Non-Contributory: Only the employer contributes.
What is an Employee Assistance Program (EAP)?
A workplace program offering confidential support for mental health, addiction, financial, and family issues.
What are common cost-containment strategies for benefits?
- Increasing employee contributions
- Capping benefit amounts
- Limiting coverage to preferred providers
- Offering tiered benefits plans
What is severance pay?
A lump-sum payment given to terminated employees by the employer at the time of an employer-initiated termination.
What is the ‘Silver Handshake’ retirement incentive?
An early retirement package that offers extra pension benefits or a cash bonus to encourage employees to retire early.
What are common paid time-off benefits?
- Statutory holidays
- Vacation leave
- Sick leave
- Parental leave
- Bereavement leave
What is pension vesting?
A guarantee that an employee retains their pension benefits, even if they leave the employer before retirement.
What is pension portability?
The ability to transfer pension savings from one employer to another without losing benefits.
What percentage of Canadian employees provide eldercare?
32% of Canadians provide eldercare, spending an average of 23 hours per month.
Why do companies offer benefits beyond salaries?
Companies offer benefits to attract talent, improve job satisfaction, reduce turnover, enhance productivity, and comply with legal requirements. Competitive benefits can make a company more appealing in the job market.
How do flexible benefits plans improve employee satisfaction?
Employees can customize their benefits based on personal needs, making them feel valued and increasing job satisfaction. Example: A young, single worker might choose more vacation time, while a parent may prioritize child care benefits.
Why is effective benefits communication important?
Employees may not utilize their benefits if they don’t understand them. Employers must use newsletters, HR meetings, and online portals to ensure workers know what is available and how to access it.
How do cost-containment strategies impact employees?
Cost-cutting measures like higher deductibles or lower employer contributions can reduce company expenses but may also cause dissatisfaction if employees feel they are losing essential benefits.
What is the impact of defined benefit vs. defined contribution pension plans on retirement security?
- DB plans provide guaranteed income, making them safer for employees but costly for employers.
- DC plans shift investment risk to employees, making final payouts uncertain but giving employees control over their investments.
How do benefits help with work-life balance?
Perks like flexible work schedules, mental health support, and parental leave reduce stress, allowing employees to balance personal responsibilities with work, leading to increased productivity.
Why is employer branding important for benefits?
Employees compare benefits across companies when job hunting. A strong benefits package can differentiate a company and help attract top talent.
What role do EAPs play in workplace mental health?
EAPs provide confidential counseling for employees facing stress, addiction, financial struggles, or family crises, leading to better job performance and reduced absenteeism.
