Matakuliah : J0124/Manajemen Sumber Daya ManusiaTahun : 2007/2008

MODUL 18 Managing Employee

Benefits

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Learning OutcomesAfter studying this chapter, the students should be able to :• define employee benefits & identify two strategic reasons

of benefit• Distinguish between mandated & voluntary benefits• Describe two security benefits• Explain the importance of health-care cost management• Summarize benefits communication & flexible benefits

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Outline• Strategic perspective on benefit• The nature & types of benefit• Security benefits• Retirement security benefits• Health-care benefits• Financial & other benefits• Time-off benefits• Benefits

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Strategic perspectives on benefits

The purposes :•Reducing employees’ fatigue•To fulfill employees’ needs•Reducing employee’s turnover•To aid recruitment & retention

Total benefit costs can be funded both by contribution made by the employer and by the employees

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Types of benefits

Benefits

Government-mandated benefits

Voluntary benefits

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Security Benefits• Workers’ compensation

• Unemployment compensation

• Severance pay

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Retirement security benefits• Retirement benefits & age discrimination * early retirement * older worker benefit * retiree benefit• Social security• Pension plans• Pension terms & concepts

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Health-care benefits• Controlling health-care benefit costs * co-payment * defined contribution plans for health benefit

• Managed care

• Health-care legislation

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Financial & other benefits• Financial benefits• Relocations benefits• Insurance benefits• Educational benefits• Social & recreational benefits• Family-oriented benefits• Family-care benefits

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Time-off benefits• Holidays pay

• Vacation pay

• Leaves of absence

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Benefits administration• Benefits communication * benefit statements * HRIS & benefit communication

• Flexible benefits

• Problems with flexible plans * inappropriate benefits package * adverse selection

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Closing• Benefits provide additional compensation to employees• There are strategic reasons for offering benefits• An important distinction of benefits is made between

mandated & voluntary benefit• Flexible benefit systems are increasing in popularity• Explain the problems with Flexible-Benefit Plan• Why should communicate the Benefit Package