Download presentation
Presentation is loading. Please wait.
Published byAlvin Blair Modified over 9 years ago
2
Employee Benefits © Nancy Brown Johnson, 2004
3
Employee Benefits: Unique Aspects Legal Compliance Tend to become institutionalized Complexity Little Effect on Motivation
4
Benefits Growth & Decline
5
Reasons for Growth New Deal legislation Wage and price controls -WW II Tax benefits Group rates Rise in health care costs Union objective
6
Legally Mandated Benefits Social Security About 8% employer and employee tax on wages Additional Medicaid tax of 1.45% Unemployment Compensation Experienced based tax Eligibility: work 1 year - not on strike, quit or fired for cause Workers Compensation Disability,medical care, death benefit & rehabilitation Experienced based tax Family and Medical Leave Act ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N
7
Private Insurance Health Driving the rise in benefit costs Cobra must continue Life Short & Long Term Disability Nursing home
8
Retirement ©a Times Mirror Higher Education Group, Inc., company, 1997 IRWI N Defined Benefit retirement income level is specified employer assumes risk Defined Contribution amount contributed to retirement defined employee assumes risk
9
ERISA (1974) Funding Vesting Communication Portability
10
Invest Early & Often Retirement income Retirement calculator
11
Payment for Time Not Worked Vacations not mandated in US 30 days mandatory in Europe Holiday Pay Sick Leave Family & Medical Leave
12
US V. Rest of world http://www.globalworkingfamilies.org/
13
Average Hours Worked by Country
14
Employee Benefits in 1993 by Category Source: Adapted from the U.S. Chamber of Commerce Research Center, Employee Benefits (Washington,DC: U.S. Chamber of Commerce), 1991, 1994. 25.2% Payment for time not worked 28.3% Medical & other insurance 21.1% Legally required 16.0% Retirement plans Paid rest periods (5.6%) Miscellaneous (3.8%) Benefits as % of payroll equals 41.3% Benefits as % of payroll equals 41.3%
16
Managing Benefits Survey & Benchmarks Cost control managed care co-insurance HMO or PPO Workforce Demographics Communicating with Employees
17
Flexible Benefit Plans (Cafeteria) Helps make employees more aware of benefit costs Addresses different employees needs Maybe reduce some costs for benefits not needed Increased design and administrative costs
18
Benefit Summary Benefits do not motivate Usually viewed as entitlement Benefits may help attraction and retention Often undervalued by employees
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.