1. Human Resources
Benefits

2. Benefits MAN 3301: Management of Human Resources Chapter 16
Benefits are indirect financial payments and
incentives. Basically, anything a person receives
as compensation that is NOT a paycheck
for hours worked.
Mandatory
Competition
Reward and Retention

3. Benefits MAN 3301: Management of Human Resources Chapter 16
Mandatory Benefits –
Social Security
Unemployment Insurance
Worker’s Compensation Insurance

4. Benefits MAN 3301: Management of Human Resources Chapter 16
Retirement-related Benefits –
Defined-benefit pension plan
Defined-contribution pension plan
Legal issues:
ERISA
Vesting
Mandatory/Early Retirement & Layoffs

5. Benefits MAN 3301: Management of Human Resources Chapter 16
Insurance –
Health Insurance
Dental Insurance
Life Insurance
Accident & Disability Insurance

6. Benefits MAN 3301: Management of Human Resources Chapter 16
Pay for Time Not Worked –
Vacations
Holidays
Sick Pay
Severance Pay

7. Benefits MAN 3301: Management of Human Resources Chapter 16
Personal Services –
Credit Unions
Counseling Services
Employee Assistance Programs (EAPs)
Job-Related Services –
Subsidized Child & Elder Care
Transportation
Food Services
Education Subsidies

8. Benefits MAN 3301: Management of Human Resources Chapter 16
Flexible Benefit Plans –
Allows employees to choose from a range of
options how their compensation & benefits will
be distributed.

9. Benefits MAN 3301: Management of Human Resources Chapter 16
Flexible Benefit Plans – Pros
Employee control
Changing lifestyles
Recruiting tool
Cost communication to employee
Tax savings for employee
Improved morale
Cost control for organization

10. Benefits MAN 3301: Management of Human Resources Chapter 16
Flexible Benefit Plans – Cons
Time and effort to administer
Union opposition
Stupid employees
Tax limitations