BENEFITS AND COMPENSATION Human Resource Management College of Public and Community Service University of Massachusetts at Boston ©2008 William Holmes 1

WHAT ARE BENEFITS? Rewards having financial value Not direct financial compensation Usually indirect Related to membership status Not related to productivity 2

MANDATED BENEFITS Social Security Unemployment Compensation Workers’ Compensation Family & Medical Leave 3

SOCIAL SECURITY BENEFITS Old Age Survivors Disability Medicare Paid by Employees and Employers 4

UNEMPLOYMENT COMPENSATION Applies to Terminations Without Cause Minimum 26 Weeks (sometimes more) Tax Paid by Employers 5

WORKERS COMPENSATION Job-related Illness Job-related Accident Covers Pay and Health Care Employer Paid Payments Depend on Work Experience 6

FAMILY AND MEDICAL LEAVE Family and Medical Leave Act of 1993 Applies to Private Employers with 50+ Employees and all Government Employers 12 weeks unpaid 12 months prior work Includes health insurance Includes right to return to work 7

VOLUNTARY BENEFITS: 1 Payment for Time Not Worked Health Care Life Insurance Retirement Plans Disability Protection 8

VOLUNTARY BENEFITS: 2 Employee Stock Options (Profit Corporations Only) Supplemental Unemployment Benefits Employee Services Premium Pay 9

PAYMENT FOR TIME NOT WORKED Vacation Sick Days Personal Days Sabbaticals Jury Duty Military Service Bereavement 10

HEALTH CARE BENEFITS Providers—CI, HMO, PPO, POS, EPO, Consumer Control—EP, DCP, HSA, FSA Add-ons—Major Medical, Dental, Vision, Long-Term Care Eligibility Varies 11

RETIREMENT PLANS Defined Benefit Plan Defined Contribution Plan 401(k) Plans Cash Balance Plan 457 Plans (Deferred Compensation) Automatic Savings Accounts SSA 12

EMPLOYEE SERVICES: 1 Relocation Expenses Child Care Education Food Service Financial Service 13

EMPLOYEE SERVICES: 2 Legal Service Scholarship Club memberships Recreation 14

COMPENSATION 15

COMPENSATION FACTORS Organizational Labor Market Job Employee 16

ORGANIZATIONAL FACTORS IN COMPENSATION Compensation Policies Organizational Politics Ability to Pay 17

LABOR MARKET FACTORS IN COMPENSATION Compensation surveys Expediency/Job Recruiters Cost of Living Union Contracts Economy Legislation 18

JOB FACTORS IN COMPENSATION Job Analysis Job Description Job Evaluation Job Pricing 19

EMPLOYEE FACTORS IN COMPENSATION Performance Skill Requirements Seniority Experience Organizational Position Membership Organizational Politics Luck 20