Hrm Employee Benefits

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  • Topic: Pension, Pension Benefit Guaranty Corporation, 401(k)
  • Pages : 3 (521 words )
  • Download(s) : 203
  • Published : February 7, 2013
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Employee benefits
Have grown in importance and variety
Typically membership-based rewards offered to attract and keep employees Do not directly affect a worker’s performance, but inadequate benefits lead to employee dissatisfaction. Costs of Providing Employee Benefits

Benefit and service offerings add about 40% to an organization’s payroll cost. Benefits become the focus of negotiations with employees when large wage and salary increases are not feasible. Social Security

Financed by equal employee and employer contributions, based on a percentage of earnings. Provides income for retirees, disabled workers and surviving dependents. Provides some health insurance coverage through Medicare.

Unemployment Compensation
Funded by employers who pay combined federal and state tax imposed on taxable wage base Tax varies based on organization’s unemployment experience. Provides employees with some income continuation during periods of involuntary unemployment Typical coverage is for 26 weeks.

Workers’ Compensation
Paid for by the organization
Rates based on likelihood of accidents, past history, and the type of industry. Benefits pay expenses and/or compensate for losses resulting from work-related accidents or illness, regardless of fault.

Family and Medical Leave Act
1993 Act requires employers with 50 or more employees to allow up to 12 weeks of unpaid leave for family or medical reasons. Specifies record-keeping and communication requirements Traditional health insurance

Typically has the fewest coverage limitations for the employee Usually the most expensive
Health Maintenance Organizations (HMOs)
Alternative benefit required by Health Maintenance Act of 1973. Broad comprehensive care provided by designated service centers for fixed fees. Promotes preventive care.
Health care choices significantly limited.
Employer-operated coverage
Employers self-fund insurance programs
...
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