Workshop FiveTopic 5.6

1

BENEFITS AND COMPENSATION

© Ana G. Méndez University System, 2012. All rights reserved.

What are Benefits?

Rewards having financial valueNot direct financial compensationUsually indirectRelated to membership statusNot related to productivity

Mandated BenefitsSocial SecurityUnemployment CompensationWorkers’ CompensationFamily & Medical Leave

Social Security Benefits

Old AgeSurvivorsDisabilityMedicarePaid by Employees

and Employers

Unemployment Compensation

Applies to terminations without causeMinimum 26 Weeks (sometimes more)Tax Paid by Employers

Workers Compensation

Job-related IllnessJob-related AccidentCovers Pay and Health CareEmployer PaidPayments Depend on

Work Experience

Family and Medical Leave

Family and Medical Leave Act of 1993 Applies to Private Employers with 50+Employees

and all Government Employers 12 weeks unpaid & 26 weeks for service

members 12 months prior work (1,250 hrs) Includes health insurance Includes right to return to work

Voluntary BenefitsHealth CareLife InsuranceRetirement PlansDisability ProtectionEmployee Stock Options

(Profit Corporations Only)Supplemental Unemployment

BenefitsEmployee Services

Payment for time not worked

VacationsPaid Time Off and

Personal DaysSick Days

SabbaticalsJury DutyMilitary ServiceBereavement

*Read the notes, for more information.

Health Care BenefitsProviders

CI, HMO, PPO, POS, EPO,

Consumer Control EP, DCP, HSA, FSA

Add-ons Major Medical, Dental, Vision,

Long-Term Care

COBRA

Retirement Plans

Defined Benefit Plan Contribution Plan

401(K) PlansIRA

(Individual Retirement Amount)

*Read the notes, for more information.

Compensation Factors

Factors influencing compensation management Internal and External Factors

Organizational Factors in Compensation

Remember that happy employees are the only way to keep a business running in the right direction.

*Read the notes, for more information.

Labor market factors in compensation

Compensation surveys

Expediency/Job Recruiters

Cost of Living

Union ContractsEconomy & the

MarketLegislation

*Read the notes, for more information.

Advantage of compensation and benefit

Job satisfaction Motivation Low Absenteeism Low Turnover

Peace of Mind

Advantages of compensation and benefits

Advantage to your employees

*Read the notes, for more information.

What we have learnedToday Humans are regarded as one of every

company’s assets so they need to be efficiently and effectively managed.

One of the tools companies use to attract, retain and motivate its people is Compensation Management.

End

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