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McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved. INTRODUCING EMPLOYEE BENEFITS Chapter 1

1-3 3 FUNDAMENTAL ROLES  Protection Programs  Paid Time-off  Accommodation and Enhancement Benefits

1-4 3 TYPES OF COMPENSATION  Total – Intrinsic & Extrinsic  Intrinsic – Represents Employees’ Psychological Mindsets That Result From Performing Their Jobs  Extrinsic – Monetary and Nonmonetary Rewards

1-5 5 CORE JOB DIMENSIONS  Skill Variety  Task Identity  Task Significance  Autonomy  Feedback

1-6 JOB CHARACTERISTICS THEORY Jobs With  Skill Variety, Task Identity & Task Significance Lead to Meaningfulness Work  Autonomy Lead to Experienced Responsibility for Outcomes of Work  Feedback Enhance Employees’ Knowledge of the Actual Results of their Work

1-7 EXTRINSIC COMPENSATION  Monetary Rewards  Core Compensation  Nonmonetary Rewards  Protection Program  Paid Time - Off  Services

1-8 CORE COMPENSATION  Base Pay – Wages & Salary  COLA – Cost of Living Adjustments  Seniority Pay – Pay Increases Based on Length of Service

1-9 CORE COMPENSATION  Merit Pay – Pay Increases Based on Job Performance  Incentive Pay – Rewards Based on Attaining Work Objectives  Person-Focused Pay – Pays Employees for Acquiring New Job Knowledge or Skills

1-10 LEGALLY REQUIRED BENEFITS Benefits Required by Law  Social Security Act of 1935,  State Workers’ Compensation Laws  Family and Medical Leave Act of 1993

1-11 SOCIAL SECURITY ACT 2 Original Programs  Retirement System  Unemployment Insurance Program Amendments  OASDI  Medicare

1-12 OBJECTIVES OF WORKERS' COMPENSATION  Income and Medical Benefits for Victims  Remedy to Reduce Litigation Time & Expense  Relieve Charities of Financial Drains  Improve Workplace Safety  Encourage Accident Investigations

1-13 FMLA Provides Job Protection to Employees in Case of Medical or Family Emergencies  12 Weeks of Unpaid Leave  1,250 Hours in 12-Month Period

1-14 DISCRETIONARY BENEFITS  Originally Known as Welfare Practices Three Main Roles  Income and Health Protections  Paid Time - Off  Accommodation and Enhancement

1-15 INCOME PROTECTION PROGRAMS  Disability Insurance  Life Insurance  Retirement Plans

1-16 RETIREMENT PLANS  Defined Contribution Plans  Defined Benefits Plans  Hybrid Plans

1-17 HEALTH INSURANCE PROGRAMS  Fee-for-Service Plans  Managed Care Plans  Point-of-Service Plans  Consumer-Driven Health Care

1-18 PAID TIME - OFF  Holiday  Vacation  Sick Leave  Jury Duty  Funeral Leave  Military Leave  Clean-up Time  Travel Time

1-19 DISCRETIONARY BENEFITS FEATURES  Eligibility Provisions  Variety  Levels of Benefits  Waiting Periods  Financing Benefits

1-20 FINANCING BENEFITS  Noncontributory  Contributory  Employee-Financed Programs  Combination

1-21 RELEVANT LAWS  NLRA  FSLA  ERISA  COBRA  HIPPA  ADEA  ADA  Equal Pay Act  Title VII of Civil Rights Act of 1964  Pregnancy Discrimination Act  Civil Rights Act of 1991

1-22 EXTERNAL ENVIRONMENTS  Industry Prospects  Economic Conditions  Forecasts  Employers’ Costs of Compensation and Benefits Government Regulations  Changing Demographics

1-23 ACCOMMODATION & ENHANCEMENT BENEFITS  Improve Mental & Physical Well-Being Provide Family Assistance  Allow Flexible Work Schedules  Enhance Employees’ Knowledge & Skills Provide Opportunities to Manage Daily Challenges

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