The chapter is introduced with the stories of three loyal, long-term employees whose retirement plans were drastically altered. Due to changes in their employers’ pension plans, each person was forced to adapt to reduce payouts. The stories reflect changes in benefits happening in countless companies. Benefits are generally membership-based rewards which are desirable to employees and which can be designed to meet the diverse needs of today’s workers. The costs and complexities of both legally required benefits and voluntary ones, such as health insurance, retirement plans and time off are presented, as well as current issues, including flexibility of benefits choices and availability of benefits for families, domestic partners and retirees. Effective benefits administration allows companies to attract and retain good workers by creatively and cost-effectively offering employees more than just their paycheck.
Additional Features of This Chapter:
Exhibit 12-1 is a listing of the major benefits typically offered and the percentage of employees participating.
Exhibits 12-2 and 12-3 provide sample Health Maintenance Organization and Preferred Provider Organization coverage plans.
Exhibit 12-6 calculations demonstrate the financial impact of flexible spending account plans.
“Ethical Issues in HRM” discusses the issue of benefits for domestic partners.
“Diversity Issues in HRM” covers what happens to benefits, pay and job security when employees must report for military duty.
“Did You Know: Benefits Around The Globe” highlights some benefits available internationally.
“Workplace Issues: Revising the Stock Option Plan” explores stock options and FASB standards.
