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15 Cards in this Set
- Front
- Back
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6 Types of Indirect Pay |
Mandatory Benefits Retirement Income Health Benefits Pay For Time Not Worked Employee Services Miscellaneous Benefits |
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Define Mandatory Benefits |
WCB CPP EI |
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Types of Retirement Income |
Defined Benefit Plan Defined Contribution Plan Hybrid Pension Plan |
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Types of Health Benefits |
Supplemental Health Income Disability Insurance Life & Accident Insurance Dental Insurance Health Care Spending Accounts |
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Types of Pay for Time Not Worked |
Vacations, holidays, and breaks Sickness & Compassion Leave Supplemental Unemployment Benefits Parental Leaves Education/Sabbatical Leave Severance Pay |
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Types of Employee Services |
Employee Assistance Programs Wellness & Recreation Child/Elder Care Work-life Balance Financial/Legal Services Food Services Outplacement Services |
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Types of Miscellaneous Benefits |
Company Vehicle Product/Service Discount Housing/Mortgage Subsidies Employee Savings Plan Tuition Reimbursements Work clothing/equipment |
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Define Defined Benefit Plans |
Pension plans that provide retirement income based on a proportion of the employee's pay at the time of retirement |
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Define Defined contribution Plans |
Pension plans that provide retirement income based on the accrued value of employer and employee contributions to the plan |
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Define fixed benefit system |
An employee benefit plan that provides a standard set of benefits to all those covered by the plan |
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Define flexible benefit system |
An employee benefit plan that allows employees to allocate employer-provided credits to purchase the benefits of most value to them |
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Define simplified flex plan |
Core set of benefits where employees have the option to add additional coverage at own expense using after-tax dollars |
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Forces for adopting flex plans |
Allows employee choice while reducing cost of unused benefits Allows employees to maximize the benefits system Enforce that benefits are a form of pay, not entitlement Can create competitive advantage in terms of recruitment and retention |
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Forces Deterring adoption of flex plans |
Cost of implementation and administration Loss of economies of scale Possible confusion and poor decision making among employees Lack of fit with organizational culture Resistance from employees or unions |
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Issues with Designing the Benefit System |
1. Determine Role of Indirect Pay in Compensation Strategy 2. Choose the Process for Plan Design 3. Identify the Benefits System and Benefits to be included (flex, semi-flex, fixed) 4. Determine the Structure of Each Benefit which includes type of coverage, funding, eligibility, and flexibility of each benefit 5. Develop procedures for administering, communicating, and evaluating the system |
