Week 10- Employee Benefits Flashcards
what is Benefits Fraud?
fraud occurs when you intentionally submit false or misleading information to your insurance provider for the purpose of financial gain.
what is Total Compensation
direct and indirect compensation
what is direct compensation?
Direct - pay, based on critical job factors or performance
what is indirect compensation?
Indirect - benefits and services extended as a condition of employment
what are some Implications of Benefits for HR?
Comply with all legal requirements
Inform new employees about benefits
Maintain accurate employee records
Reduce accidents to lower the cost of worker’s compensation
Challenge all unjustified claims for employment compensation
Control health costs eg. copay
what are the Organizational Objectives in the Benefits Plan?
Reduce fatigue/burnout
Discourage labour unrest
Satisfy employee objectives
Aid recruitment
Reduce turnover
Minimize overtime costs keep employees healthy
Define benefit plans
benefits are defined by a formula based on age and length of service. Employer assumes responsibility, amount is frozen when employees leave.
Defined contribution plan
Based on amounts contributed by the employer and employee final pay is dependent on contributed amounts plus interest and market. Can grow when you leave.
Golden Handcuffs?
the financial allurements and benefits that have the objective to encourage highly compensated employees to remain within a company.
Perks - Employment Services:
more convenience-based than being a true benefit
Flex scheduling - flex time, compressed work weeks, job sharing, & flex time
Natural light - people love it
Paramedical Services - physiotherapy, massages, naturopaths
ex from class
Examples
Starbucks (benefits)
The store beverages and food when you work
Employee assistance program
Health benefits, tuition reimbursement, stock and savings
ex from class
US Steel Lockout (Labour unrest)
US Steel wanted to end pension indexing and move to a defined contribution scheme from a defined pension plan
ex from class
Next jump (employment services)
Health and wellness benefits like fitness classes and healthy snacks
