Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Chapter 13: Providing Employee Benefits
Transcript of Chapter 13: Providing Employee Benefits
Discuss the importance of effectively communicating the nature and value of benefits to employees. Define the types of retirement plans offered by employers.
Describe how organizations use other benefits to match employees’ wants and needs.
Explain how to choose the contents of an employee benefits package. Discuss the importance of benefits as a part of employee compensation.
Summarize the types of employee benefits required by law.
Describe the most common forms of paid leave.
Identify the kinds of insurance benefits offered by employers. Learning Objectives Learning Objectives Learning Objectives Benefits as a Percentage of Total Compensation Benefits contribute to attracting, retaining, and motivating employees.
The variety of possible benefits helps employers tailor their compensation to the kinds of employees they need.
Employees have come to expect that benefits will help them maintain economic security.
Benefits impose significant costs. The Role of Employee Benefits Employee benefits and benefits in kind (also called fringe benefits, perquisites, perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. Examples of these benefits include: What are Employee Benefits? Employee Benefits (continued) Social security
Profit sharing Sick leave Group insurance (health, dental, life etc.) Disability income protection Retirement benefits Tuition reimbursement Vacation (paid and non-paid) Funding of education Housing (employer-provided or employer-paid) Benefits packages are more complex than pay structures, making them harder for employees to understand and appreciate.
The important role of benefits is one reason that benefits are subject to government regulation.
Legally required benefits.
Tax laws can make benefits favorable. Learning Objectives! Employee Benefits!? The Role of Employee Benefits (continued) Purpose of Employee Benefits. Social Security Systems (SSS) Contributions The social security system is aimed at providing protection for the SSS member against socially recognized hazard conditions, such as sickness, disability, maternity, old age and death, or other such contingencies not stated but resulted in loss of income or results to a financial burden. Contribution to National Health
Insurance Program (NHIP) / PhilHealth The NHIP aims to reduce out of pocket spending as well as the inequities in health financing Contribution to Home Development
and Mutual Fund (HDMF) / PAGIBIG Fund An answer to the need for a national savings program and an affordable shelter financing for the Filipino worker. The 13th Month Pay The employee shall receive a bonus salary equivalent to one (1) month, regardless of the nature of his/her employment, not later than December 24 of every year. Service Incentive Leave Every employee (subject to the exceptions) who has rendered at least one year of service is entitled to yearly service incentive leave of five days with pay. Meal and Rest Periods The employee is provided a one-hour employee benefit for regular meals, when working on an eight (8 hour) stretch.
Employees are also provided adequate rest periods in the morning and afternoon which shall be counted as hours worked. Basic Benefits in the Philippine Labor Code Basic Benefits in the Philippine Labor Code (continued) After 6 days of consecutive work a employee is entitled to 1 rest day (24 hours consecutive).
Employers need to consider employees religious affiliation in giving a rest day. Maternity leave only applies for female workers who have work for the company at least 3 months and is a member of SSS.
Maternity leave only extents to the fourth child of the employee.
Normal or Abnormal delivery (Up to 60 days with pay).
Cesarian Operation (78 days with pay). Paternity leave only applies to male employees
The male employee will be entitled to a 7 day paternity leave if the one that gave birth is his legal wife. Rest Day Maternity Leave Paternity Leave Optional Benefits Programs (continued) Optional Benefits Programs The major categories of paid leave are vacations, holidays, and sick leave. Organizations often provide for paid leave for jury duty, funerals of family members, and military duty.
Paid time off is a way for employees to enjoy time with their families and to refresh their bodies and spirits. These paid leaves may seem uneconomical. The employer pay the employee for time spent not working, so the employer receives nothing in return for the pay.
Book III, Chapter III of the Labor Code of the Philippines covers the employee's right for Service Incentive Leaves. Paid Leave Paid Leave (continued) Rates for group insurance are typically lower than for individual policies. Also, insurance benefits are not subject to income tax, as wages and salaries are.
Medical Insurance is one of the most valued employee benefits. e.g. hospital expenses, surgical expenses, and visits to physicians. Group Insurance Disability Insurance
Disability insurance provides protection against the loss of income due to a disability which makes them unable to work. Typically, short-term disability insurance provides benefits for six months or less. Long-term disability insurance provides benefits after that initial period, potentially for the rest of the disabled employee’s life. Life Insurance
With a life insurance policy, if the employee dies during the term of the policy, the employee’s beneficiaries receive a payment called the death benefit.
Long-term Care Insurance
These policies provide benefits toward the cost of long-term care and related medical expenses. Group Insurance (continued) Group Insurance (continued) •Contributory plan is a retirement plan funded by contributions from the employer and employee.
•Noncontributory plan is a retirement plan funded entirely by contributions from the employer. Retirement Plan Defined contribution plan is a retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account. Cash Balance Plans is a retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee’s salary. Book VI of the Labor Code of the Philippines, under the heading Post Employment covers the employee's retirement and benefits and social insurance. Retirement Plan (continued) Retirement Plan (continued) Retirement Plan (continued) Family leave - Family or parental leave grants employees time of to care for children and other dependents.
Child care – Child care benefits may take several forms, requiring different levels organizational involvement. Children savings – As worker’s children grow up, their needs shift from maternity leave and child care to college tuition.
Elder care – As the population of the nation’s elderly grows, so do the demands on adult children to care for elderly parents, aunts, and uncles. Family-Friendly Benefits Family-Friendly Benefits On-site fitness center
On-site dry cleaning services
Dues for professional organizations
Off-site company recreation area
Pet services Subsidized cafeterias
On-site health care services
Moving and relocation expenses
Employee discounts on products
Employee buying service
Tuition reimbursement Other Benefits Other Benefits (continued) Although the government requires certain benefits, employers have wide latitude in creating the total benefits package they offer employees. Decisions about which benefits to offer should take into account:
The organization’s goals and objectives
The organization’s budget
The expectations of the organization’s current employees and those it wishes to recruit in the future. Selecting Employee Benefits Selecting Employee Benefits (continued) An Organization’s Benefits Objectives Employees expect to receive benefits that are legally required and widely available.
They value benefits they are likely to use.
The value employees place on various benefits is likely to differ from one employee to another. Employees’ Expectations and Values Organizations can address differences in employees’ needs and empower their employees by offering flexible benefits plans in place of a single benefits package for all employees.
Cafeteria-style plan: a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want. Employees’ Expectations and Values (continued) Legal Requirements for Employee Benefits Anti discrimination laws – many laws related to equal employment opportunity apply to benefits policies, as well
Accounting Requirements – companies must set aside the funds they need for benefits to be paid when employees retire Benefits required by law – some benefits are required by law which adds to the cost of compensating employees.
Tax treatment of benefits – benefits plans must meet certain requirements to obtain favorable tax treatment and be considered “qualified plans” Legal Requirements for Employee Benefits Legal Requirements for Employee Benefits Organizations must communicate benefits information to employees so that they will appreciate the value of their benefits.
This is essential so that benefits can achieve their objective of attracting, motivating, and retaining employees.
Employees are interested in their benefits, and they need a great deal of detailed information to take advantage of benefits. Communicating Benefits to Employees Optional Benefits Programs Optional Benefits Programs (continued) Selecting Employee Benefits
and Employee Expectations Legal Requirements for Employee Benefits