Employee Benefits

Family and Medical Leave Act of 1993 (FMLA)

(Statutory Benefit) - 12 workweeks of unpaid leave in any 12-month period for: eligible employees when they or immediate family members are faced with medical issues Eligible Leaves... - Birth and care of the employee's child, within one year of birth - Placement with the employee of a child for adoption or foster care, within one year of the placement - Care of an immediate family member (spouse, child, or parent) who has a serious health condition - For the employee's own serious health condition that makes the employee unable to perform the essential functions of the job - Any qualifying exigency arising out of the fact that the employee's spouse, son, daughter, or parent is on active duty or has been notified of an impending call or order to active duty in the U.S. National Guard or Reserves in support of a contingency operation

Unemployment Insurance

(Statutory Benefit) - Federal program managed by each state that provides payments for a fixed period to workers who lost their jobs - Despite federal guidelines, each individual state determines the eligibility, amount, and duration of the benefits - Keeping the number of unemployment insurance claims filed by former employees to a minimum can produce significant payroll tax savings

Workers Compensation

(Statutory Benefit) - Provides medical treatment and temporary payments to employees who are injured on the job or become ill because of their job

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

(Statutory Benefit) - Requires employers to offer to temporarily maintain health insurance on individuals who leave their employment Qualifying events are defined - Voluntary or involuntary termination of employment (expect in cases of gross misconduct) and reduction in hours The reason for loss of coverage determines the length of time that an employee is able to continue coverage under COBRA as long as payment is received within the stipulated timeline - 18 months due to termination of employment, layoff, reduction in hours, retirement, strike, etc. as long as the termination wasn't due to gross misconduct - 29 months due to disability - See social security administration guidelines, rulings, and timeline etc. - 36 months due to divorce, death, or loss of dependent status - Must not exceed 102% of what employer costs

Social Security

(Statutory Benefit) - System supported by equal contributions from employer and employee that provides: - Retirement income - Disability income - Survivor benefits - Medicare benefits

Obamacare - The patient protection and affordable care act

(Statutory benefit) - Obama care guarantees that health care is available to any legal U.S resident who cannot otherwise obtain "good" healthcare through their employer - Gives American employers with over 50 employees the choice between providing insurance that meets the standard of Obamacare or paying a penalty - This penalty helps to offset the cost of employees who aren't covered through their employer to purchase insurance though the public health insurance exchanges instead of using emergency services - Employers with less than 25 employees may qualify for tax credits, tax breaks and other assistance for insuring employees

Employee Insurance Coverage

(Voluntary Employee Benefit) - Life insurance, disability insurance, health insurance, death and dismemberment Others - Employer-sponsored car insurance, legal assistance, homeowners and renter's insurance, identity theft, and pet insurance

Consideration in Providing Benefits Programs

- Amounts - Affordability to the firm - What to Offer? - Various mixes include: a retirement benefit, health insurance, life and disability insurance, dental care, doggie day care, free parking, public transportation vouchers, etc. - Flexibility - Allows employees to choose one time of benefit over another

Overview of Benefits Management

- Benefits are indirect compensation that provide something of value to the employee - Some are mandatory, due to federal and state statutes, and some are optional based on the desires of the firm - According to the U.S. Bureau of Labor Statistics, benefits average roughly 30% of total employee compensation cost

Employee Health

- Employee Wellness Programs (EWP) - Cater to employees' physical welfare through education and training programs such as health education, training and fitness, weight and lifestyle management, and health risk assessment services - Employee Assistance Programs (EAP) - Counseling and other services provided to employees that help them resolve personal issues that might affect their work

Benefits of offering EAPs, EWPs, and stress management training

- Firms that keep the number of accidents and incidents low, generally see lower absenteeism and increased job satisfaction - When firms improve two of the four most important variables at work - absenteeism and job satisfaction - they are better assured of increasing productivity over time

Administration of Benefits

- Flexible benefit (Cafeteria Plans) - Employees choose from multiple options - Modular Plans - Employees choose benefits from modules, each with a different mix of insurance, employee services and retirement options; these plans are easiest for HR to manage - Core plus plans - Core benefits are available to everyone; employees choose from remaining benefits

Design Through Employee Accommodation

- Flextime schedules - compressed work week - permanent part-time work / job sharing - telecommuting / electronic and industrial cottages

Flexible Working Hours

- Gives individuals a daily choice in the timing of their work commitments Advantages - For workers - shorter commuting time, more leisure time, more job satisfaction, and greater sense of responsibility - For organizations - Less absenteeism, tardiness and turnover; more commitment and higher performance

Employee Assistance Program (EAP) Counseling

- In person assessments; short term, problem solving counseling, coaching, and consulting - Referrals to community resources and providers - Critical incident stress management - Health and wellness presentations - Legal/financial services - Website resources

Stress Management

- Is the process of eliminating or reducing stress and making it functional Six techniques - time management - relaxation - nutrition - exercise - positive thinking - support network

Wellness Programs

- Private health insurance - Dental and vision programs - On site assessments - physicals, hearing, vision, blood pressure checks (be mindful of employee confidentiality HIPPA) - Smoking cessation programs - Weight loss assistance - Gym on site/ gym vouchers

Communicate Value to Employees

- So they understand the true cost and value of the benefits they receive from the firm - Provide information through multiple communication channels more often than just once a year during open enrollment

Group Health Insurance

- Tradition Health Care Plans - Typically cover a set percent of fees for medical services - Health Maintenance Organization (HMO) - Is a managed care program that provides both health and maintenance services and medical care - Preferred Provider Organization (PPO) - Is a hybrid between tradition fee-for-service plans and HMOs - Health or Medical Savings Accounts (HAS/MSA) - Allow employers and employees to fund a medical savings account from which employees can pay medical expenses with pretax dollars

Utilization Analysis

A review of the cost of a program and comparison of program costs with the rate of the program's usage by the members of the company

What Alternative Work Arrangements Are Used Today?

Advantages of Telecommuting - Workers - Flexibility, comfort of home, and choice of work locations consistent with one's lifestyle - Organization - Cost savings, efficiency, and improved employee satisfaction Disadvantages of Telecommuting - Workers - Isolation from co-workers, decreased identification with work team, and technical difficulties with computer linkages

The Employee Retirement Income Security Act of 1974 (ERISA)

Are not mandatory, but if provided, the firm must comply with ERISA provisions - A 401k retirement plan is a savings investment account for individual employees of corporations; - A 403b retirement plan is similar but it is used for nonprofits - Matching Contributions - Many employers that offer a 401k or 403b provide a matching contribution up to a set maximum - Eligibility - Available to all employees over 21 who have worked in the firm for one year - Vesting - A max time that a firm can retain company contribution to the employees account (When does the employee have a non-forfeitable interest in their pension) - Portability - Allows employees to move their funds from the employer to another qualified fund - Fiduciaries - They must act under a concept called the "prudent man"

Health care Issues to be Considered

Benefit coverage, deductibles, monthly premiums, copayments, and choice of health care provider

Cost - Benefit Analysis / Return on Investment

Benefits that encourage healthier behavior are a cost effective way to: - Keep up employee morale - improve employee retention / decrease absenteeism - Help decrease health care costs to employers and employees *Remember hiring decision cannot legally be based on a person's potential health care costs to the company*

Child Care

Benefits to Employer - Greater ability to attract and retain good employees - Loss employee absenteeism - Lower job turnover - Improved employee morale Some employers provide - In-house child-care centers - Financial assistance to pay for child care

Health Insurance Cost Sharing

Employee cost sharing through three methods - Co-payments - Deductibles - Monthly premium contributions

Pay for Time Not Worked

Holidays, Jury duty, Maternity, paternity, and family leave, Blood donation, Sabbatical leave, Personal leave, Eligibility, Holidays falling on non-work days, Military duty, Grievance and contract negotiations, Wellness leave, Sick leave, Marriage leave, Funeral leave, Lunch, rest, and break periods

Job Sharing

One full-time job is assigned to two or more persons who divide the work according to agreed-upon hours Advantages - For workers - Less burnout and higher energy level - For organizations - Attracting talented people who would otherwise be unable to work

Workplace Flexibility Design Encompasses a wide range of options

Scheduling of Hours - Flextime, compressed work weeks, and shift changes Amount of Hours - Reduced work schedules, job sharing, flex year, and vacation options Place of work - At home, satellite, community, traveling, hoteling Management of time - Quiet time, meeting free time, teleconference planning Organization of Career - Off and on ramps, phased retirement, sabbaticals

Work at Home and the Virtual Office

Telecommuting - Work done at home or in a remote location via use of computers and advanced communication linkages with a central office or other employment locations Variant of telecommuting - Flexplace - Hoteling - Virtual Office

Part-Time Work

Temporary part-time work - An employee is classified as temporary and works less than the standard 40-hour work week Permanent part-time work - An employee is classified as a permanent member of the workforce and works less than the standard 40-hour work week Advantages - Workers - Appeals to people who want to supplement other jobs or do not want full-time work. - Organizations - lower labor costs, ability to better accommodate peaks and valleys of business cycle, and better management of retention quality. Disadvantages - Workers - added stress and potentially diminished performance if holding two jobs, failure to qualify for benefits, and lower pay rates than full-time counterparts.