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Chapter 17 Compensation, Benefits & Concerns

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lois samuel

on 30 October 2013

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Transcript of Chapter 17 Compensation, Benefits & Concerns

Chapter 17 Icebergs Tips: Compensation, Benefits & Concerns
Iceberg tips: What lies behind the scene or under the surface
Describes the role of HR/Dept. managers involvement in Compensation
Overview of HR/Dept. manager role in Benefits- Flexible, Voluntary, Portable, Benefits vouchers, COBRA
Discusses role of Dept manager in statutory benefits
Key Outline:
-workers compensation
-unemployment compensation
-short term disability

HR Recommendations in Compensation

Suggested timing of compensation changes

-Proposed wage increases to be applied either to all employees or to specific

-Proposed changes in compensation scales- pay range for job categories

-The basis for the compensation changes being proposed

-How pay increases are related to performance what are levels required for merit -based increase

- Differences between merit- pay increase/ pay scale movement

-When merit increases or scale increases can ususally be expected to occur

-How & when other kinds of pay increases, specially probationary increases

Department manager role in Compensation:
Challenges for Department manager:
Claims of inequities by employees challenging
their rate of pay in comparison to what others are paid.
How to address such issues:
Manager should know about the pay level of each person in department.

Do preliminary research concerning inequities and bring to HR for further analysis and recommendation for correction.

When it comes to inequity claims always involve HR, before agreeing to employee's cause.
All formal offers are made by HR during hiring
Safeguard employee privacy.
Manager should be conversant enough with benefits structure to answer employee questions.
Should have information of personnel policies & procedures.

Be able to refer the employee to appropriate person in HR to address those questions pertaining to benefits.
Role of Department Manager in Benefits:
Types of benefits:

Flexible Benefit Plan/ Cafeteria Plans:

Workers prefer having array of choices for benefits to consider one employment over other.
Health Insurance
-Pension Plan
-Paid Vacation
Benefit Vouchers:
These provide employees with equivalent of certain amount of money to apply outside their organization towards benefits.
Voluntary Benefits:
This approach helps employees to buy insurance coverage, retirement and financial products at their organization.
Portable Benefits:
This helps to maintain benefits for workers in mobile society. They can transfer these to other employers e.g 401(k) plan, HIPAA, and COBRA that permits self-paid continuation coverage when employment is terminated.
Statutory Benefits:

- Safe work practices/techniques to avoid any kind of injury
-Adhere to all safety rules by government and established by institution.
-Make appropriate use of safety equipment.
This benefit program fall under the 'Human Resources' areas of responsibility, as they exist by virtue as legal requirement.
FICA (Federal Insurance Contributions Act)

they are retirement benefits in form of social security taxes.
Workers Compensation:
It covers both medical and lost income compensation.
Dpt. Manager has no well defined role in controlling compensation workers costs so best approach is to have effective accident prevention program.
Unemployment Compensation:
This is intended to make up for wages lost due to periods of unemployment beyond employee's control and is not ordinarily for those who resigned voluntarily or for cause. Rather for employees who are laid off through no fault of their own or who otherwise find their services no longer required.
Short Term Disability:
Not a widespread legal requirement. Organizations are experience rated regarding disability
Managers Role in reducing costs:
- Best approach is to have accident preventive programs.
-Violators should undergo disciplinary action.
-Provide all documents for incident/accident reports.
-Care and thoroughness in hiring process.
- Scrupulously follow organization's policies & legal processes. All actions documented and strictly in accordance with policy and EEO guidelines.
- Remove any substandard performers during probationary period.
-Working with HR to challenge all unemployment claims that appear inappropriate. efforts should be made to dispute each inappropriate claims.
- The manager should consider the use of temporary help when known that certain requirements will be of short duration.
-Urge employees to take advantage of health assessments/ physical examination of organization.
Lois Samuel & Gabrielle Gordon
A large amount of HR time is spent speaking with representatives from various government agencies
These representatives typically show up unannounced and indicate trouble
HR departments should regard all inquiries as opportunities to review practices for possible violations and determine how to improved processes
Its important HR understands the agency's guidelines and procedures
All stories have two sides
External Agency Investigations

Be patient
Accept the normal sequence of events
Worrying about depositions
Accept the inevitable
Write only what is necessary
Remain sensitive
Discuss open end cases with others in the organization

Legal Actions - guidelines for department manager

Lois Samuel and Gabrielle Gordon

Chapter 17
Iceberg Tips: Compensation, Benefits, and other Concerns


Keep the appraisal form and process current
Provide evaluator training
First time evaluators
Annual refresher course for all others necessary
Arrange for the preparation and distribution of appraisal forms, instructions, and schedules at the proper times
Remain available to address questions raised by evaluators and employees
Follow up with department managers to ensure timely completion of appraisals
Collect and audit appraisals for missing information
Arrange for tabulation of appraisals and preparation of summary information for executive management and for calculation of merit increases (P4P)
Playing completed appraisals in employees personal files
Performance Appraisal – HR responsibilities


One dimension of the employment process that may be legal invisible o the department manger is the extent to which HR may have to go through to secure candidates who meet the minimum stated requirements
Once the hiring manager conveys a hiring decision to HR , a number of activities not visible to the manager can affect a new employees start date
The most time consuming steps involve getting the new employee cleared
Checking references
Pre-employment physical exams
A new employee cannot begin work on the day the hiring decision is made, but can start within one week once cleared
If a new hire is employed elsewhere a standard two-week notice is created to ensure the employee will be completely cleared by the time that time period is complete.

Employment Process – HR Responsibilities

Full transcript