BA 5202Human Resource Management

Benefits

Instructor: Çağrı Topal1

Overview and basic termsGroup or organizational membership

rewards that complement the base pay and pay incentives

Plan rather than cash

ContributionsCoinsuranceCopaymentDeductibleFlexible benefits

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TypesLegally required benefitsHealth insuranceRetirement benefitsInsurance plansTime-offEmployee services

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Benefits strategyBenefits mix• Total compensation strategy•Organizational objectives•Workforce characteristics

Benefits amountFlexibility of benefits

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Legally required benefitsSocial securityWorkers’ compensationUnemployment insuranceUnpaid leave

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Voluntary benefitsHealth insuranceTraditional health insurance plans• Flexibility

Health maintenance organization plans•Wide range of services

Preferred provider organization plans• Flexibility and wide range of services

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Voluntary benefitsRetirement insuranceDefined benefit plans• Fixed retirement income based on the average of the employee’s last three to five years’ earnings before retirement

Defined contribution plans• Retirement income depending on the success of the plan’s investments

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Voluntary benefitsOther insurance plansLife insurance• Benefits to the survivors of a deceased employee

Long-term disability insurance• Replacement income and pay for medical services for disabled employees who cannot perform their essential job duties

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Voluntary benefitsPaid time-offSick leave• Absence from work due to a short-term illness

Vacations• Time to stay away from the stresses of their work and to recharge

Severance pay• Pay give to laid-off employees to mitigate the shock of termination and to finance the employee’s search for a new position

Holidays• Time off on religious or national days9

Voluntary benefitsEmployee servicesServices provided by employers to

enhance the quality of employees’ work or personal life

Services used to attract and retain employees when not offering competitive salaries or raises

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Administering benefitsFlexible benefits•Modular plans• Core-plus options plans• Flexible spending accounts

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