BA 2204 and BAS 324

Human Resource Management

Benefits

Instructor: Çağrı Topal 1

Overview and basic terms
Group or organizational membership rewards
that complement the base pay and pay
incentives
Plan rather than cash

Contributions
Coinsurance
Copayment
Deductible
Flexible benefits
2
Types
Legally required benefits
Health insurance
Retirement benefits
Insurance plans
Time-off
Employee services

3
Benefits strategy
Benefits mix
• Total compensation strategy
• Organizational objectives
• Workforce characteristics
Benefits amount
Flexibility of benefits

4
Legally required benefits
Socialsecurity
Workers’ compensation
Unemployment insurance
Unpaid leave

5
Question
What do you think about unemployment
insurance? Is it good for employees,
companies, or economy in general?

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Voluntary benefits
Health insurance
Traditional health insurance plans
• Flexibility
Health maintenance organization plans
• Wide range of services
Preferred provider organization plans
• Flexibility and wide range of services

7
Question
Do companies have the right to monitor
employee health and reduce healthcare
coverage accordingly?

8
Voluntary benefits
Retirement insurance
Defined 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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Question
Is it more likely to observe defined benefit or
defined contribution plans in the public
sector? Why?
Is it more likely to observe defined benefit or
defined contribution plans in the private
sector? Why?

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Voluntary benefits
Other insurance plans
Life 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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Question
Which companies are more likely to provide
life and long-term insurance plans?

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Voluntary benefits
Paid time-off
Sick leave
• Absence from work due to a short-term illness
Vacations
• Time to stay away from the stresses of work
and to recharge
Severance pay
• Pay given to laid-off employees to mitigate
the shock of termination and to finance the
search for a new position
Holidays
• Time off on religious or national days 13
Question
Why are vacations and severance pay
considered as a paid time-off?

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Voluntary benefits
Employee services
Services 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

15
Question
What are some examples of employee
services?

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Administering benefits
Flexible benefits
• Modular plans
• Core-plus options plans
• Flexible spending accounts
Problems
• Adverse selection
• Poor choices
• Administration difficulties

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