Module 4.1B: Budgeting and Costs Flashcards
What is total rewards?
All tools available to an employer to attract motivate, and retain employees
When
Compensation and benefits (CAB) decisions should happen annually, either during strategic planning sessions or when budgets are being set.
What
CAB budgeting should include current salaries and benefit costs, planned/required wage or benefit increases (such as those required in a union contract), and external market factors.
If laws mandate a prevailing wage or living wage, for example, HR should account for them in the budget.
How
Budget approaches can be top-down or bottom-up.
Top-down: Executives set an overall budget and individual department budgets. Then it is up to department
managers to stay within their assigned budget. This could mean pay freezes, layoffs, or other creative cost savings.
Bottom-up: Departments set their own budgets based on their expected needs. In this approach, there are no built-in cost controls.
What it Technology
Employee self-service systems and direct deposit save both time and materials.
What are Wellness Programs?
Helping employees get and stay healthy, such as through weight-loss programs or free flu shots, can cut insurance outlays for both the employer and the employee.
What is Research?
Knowing pay ranges, economic conditions, and even political moods can help HR advise on wages and benefits and educate employees about their options.
What are Insurance Changes?
Know current healthcare rules. Changing co-pays or deductibles or opting for managed care programs can significantly reduce an employer’s burden.
Taxable pay
- Base pay
- Severance pay
- paid time off
Non-taxable pay
- childcare
- medical plans
- money put into FSA
Outsourcing payroll function would provide which primary benefit for an organization?
Enable an organization focus on strategy-related goals
What is turnover cost?
Money and productivity that is lost due to turnover rate. It is calculated throughout the year to delve deeper into successes or potential issues within an organization
A small manufacturing organization, specializing in the development of car parts has experienced an increase in demand for their products and needs to increase their recruitment efforts to keep up with demand.
What is the most economical way for the organization to meet their recruitment goals?
Outsource recruitment function to a hiring agency
