Compensation Administration Chap 12 TNTech

In 1959, benefits were approximately _____ percent of payroll and in 2010 it was approximately _____ percent of payroll.

25; 30

Which of the following companies uses probationary periods as a cost-containment measure?

DLG Corp. excludes its new recruits from benefit coverage until they complete a year

Which of the following is NOT a disadvantage of flexible benefit programs?

New benefits are more difficult to introduce.

Which of the following benefits is NOT mandated by state or federal legislation?

Work/life balance

How many weeks of leave does Family Medical Leave Act (1993) mandate for all workers at companies that employ 50 or more people?

12 weeks

_____ is the most frequently used medium for communicating employee benefits.

An employee benefit handbook

Which of the following is NOT part of the cost-centered approach for deciding to provide a benefit?

Basing benefits on historical costs

As part of the efforts to bring down the employee benefits cost to the company, GrindStop Corp. restricts the number of visits to the dentists covered in the dental plan to two per year. Which of the following cost-containment strategies is used by GrindStop?

Benefit limitation

_____ allows employees who have resigned or have been laid off through no fault of their own to continue receiving health coverage under their employer's plan at a cost borne by the employee.

COBRA (1984)

Which of the following statements is true of employee benefits?

Group insurance benefits has relatively easy qualification standards.

The _____ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.

Patient Protection and Affordable Care Act

_____ are NOT used for determining employee benefit preferences.

Product market share data

Which of the following is an advantage of flexible benefit plans?

They increase the involvement of employees in choosing benefit plans.

The typical employee can recall _____ percent of the benefits he or she receives.

less than 15

The biggest cost-containment strategy in recent years is the movement to:

outsourcing.

Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____.

pensions; medical coverage

DrenchFort Corp. is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover?

Medical coverage

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan.

a flexible benefit

If a benefit forecast suggests future cost containment may be difficult, the benefit should:

be offered to employees only on a cost-sharing basis.

By limiting liability for an employee's hospital stay costs to $200,000, an employer is using a cost-containment measure known as:

benefit ceiling.

All of the following are advantages of flexible benefits EXCEPT:

decreased administrative expenses.

Trumbrella Corp. is a pharmaceuticals company. One of its employees reports that he had an on-the-job injury caused by slippery factory floor that broke his back. When Trumbrella initiates its claims processing, it should first:

determine whether the accident happened.

The first issue in setting up a benefits package is:

finding out who should be protected or benefited.

Surveys show that the most highly valued benefit is:

medical insurance.

All of the following are cost-containment practices designed to reduce benefit costs EXCEPT:

provision of skills development training.

A survey shows that the majority of employers are responding to increased benefit costs by _____.

requiring employees to pay higher deductibles and copays

A recent survey shows employees ranking employee benefits _____ in explaining job satisfaction.

second

One of the most preferred benefits is _____.

stock plans

The most widely used benefit survey is conducted by:

the U.S. Chamber of Commerce.

All of the following factors are reasons for the growth of benefits EXCEPT:

foreign lawsuits.