Professional Documents
Culture Documents
Chapter 12
Employee
Benefits and Services
12-2
All employer-
Most available Not
provided
as long as the dependent on
rewards and
worker is seniority or
services,
employed performance
other than pay
Responsibility for
What is included Purposes served
programs
Increased Insurers’
legislation insolvency
Common reasons…
Independent Internal HR
consultants personnel
Decision
makers
Unions Government
12-7
Voluntary Benefits
Wash-up
time Sick leave
12-8
Passed in 1993
Employers with 50+ employees must provide up to
12 weeks of unpaid leave during any 12-month period
Stipulations
Employee must have been employed for
12 months to be eligible
Employer must continue group health
insurance during the leave
Employee must be allowed to return to
the same (or equivalent) job
12-10
Birth of a child
Qualifying
events Adoption
Employer-Purchased Insurance
Health Insurance
Health Insurance
Contributing Factors
Sophisticated Malpractice
Increasing health
technology and insurance
care labor costs
costly tests premiums
Over utilization of Belief that health
Oversupply of
fee-for-service coverage is an
hospital beds
medicine entitlement
12-16
Health Insurance
Health Insurance
Financial incentive
Select panel of
to use selected
providers
Provides providers
services
for a fixed fee
Some flexibility
Emphasis on
in choice of
cost efficiency
providers
Marketing to
purchasers,
not users
12-20
Cost controls
Obtain discounts from providers
Pass some risk to providers
Control utilization
12-21
Employee Services
Education Other
Financial
programs employee services
services
Flexible spending
Flexible (cafeteria)
(reimbursement)
Plan
Accounts
Things to consider
Funding
Cost-Benefit Analysis