Compensation ch. 12

What are the components of a benefit plan

Employer Preferences, Employee Preferences

Why the growth in employee benefit

Wages and price controls, unions, employer impetus, government impetus, and cost effectiveness of benefits

Benefit planning and design issues

are employee benefits cost justify? : ensuring external competitiveness and adequacy of benefits

cost effectiveness of benefits

are not taxable, avoids payments of federal and state income tax, Insurance is @lower rate through company instead of the employee doing it on their own

Unions

because of climate fostered by wage and price control; under the wagner act of 1935, ____ were able to flex the muscle they had

Employer Impetus

designed to create a climate which perceives management cared about employee well-fare; benefits slowly became a costly entitlement of the american workforce

Wages and price controls

employee benefits rose at higher $$ amount than employee wages. with strict limitations this was the catalyst for growth in benefits

Employee Preferences

equity: fairness historically and in relationship to what employees from different employer receive. Are personal needs fulfill

Benefit Administration issues

how much choice should an employee have among an array of benefits? how should benefits be financed? Are the benefits legally defense-able

NLRB (National Labor Relations Board)

in 1940 ____ freed unions to negotiate employee benefits

The Value of Employee Benefits

medical payments / saves the employee a lot $$

employer preferences

relationship to total compensation cost, cost relative to benefits and competitor offerings. Role of benefits - attraction, retention, motivation

government impetus

workers compensation (state), unemployment insurance (federal) and social security (federal) benefits provided by _____