After reading chapter 13, you should be able to: Discuss the importance of benefits as a part of employee compensation, summarize the types of employee benefits required by law, describe the most common forms of paid leave, identify the kinds of insurance benefits offered by employers,. | CHAPTER 13 PROVIDING EMPLOYEE BENEFITS FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH EDITION BY . NOE, . HOLLENBECK, B. GERHART, AND . WRIGHT Role of Employee Benefits Benefits contribute to attracting, retaining, and motivating employees. Variety of possible benefits helps employers tailor their compensation to kinds of employees they need. Employees have come to expect that benefits will help them maintain economic security. Benefits impose significant costs. Benefits Required by Law: Social Security Federal Old Age, Survivors, Disability and Health Insurance (OASDHI) program (Social Security)combines: Old age (retirement) insurance Survivor’s insurance Disability insurance Hospital insurance (Medicare Part A) Supplementary medical insurance (Medicare Part B) Benefits Required by Law: Workers’ Compensation State programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors. Operate under a principle of no-fault liability: Employee does not need to show that the employer was grossly negligent in order to receive compensation. Employer is protected from lawsuits. Benefits Required by Law: Unpaid Family and Medical Leave Family and Medical Leave Act (FMLA) of 1993 Requires organizations with 50 or more employees to provide up to 12 weeks of unpaid leave: After childbirth or adoption To care for a seriously ill family member For an employee’s own serious illness Employers must guarantee these employees same or comparable job when they return to work. Optional Benefits Programs Optional Benefits Programs: Group Insurance Medical Insurance Six employer approaches to controlling health care benefits costs: Managed Care Health Maintenance Organizations (HMO) Preferred Provider Organizations (PPO) Flexible Spending Accounts Consumer-Driven Health Plans (CDHP) Employee Wellness Programs (EWP) Optional Benefits Programs: “Family-Friendly” Benefits Legal Requirements for Employee | CHAPTER 13 PROVIDING EMPLOYEE BENEFITS FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH EDITION BY . NOE, . HOLLENBECK, B. GERHART, AND . WRIGHT Role of Employee Benefits Benefits contribute to attracting, retaining, and motivating employees. Variety of possible benefits helps employers tailor their compensation to kinds of employees they need. Employees have come to expect that benefits will help them maintain economic security. Benefits impose significant costs. Benefits Required by Law: Social Security Federal Old Age, Survivors, Disability and Health Insurance (OASDHI) program (Social Security)combines: Old age (retirement) insurance Survivor’s insurance Disability insurance Hospital insurance (Medicare Part A) Supplementary medical insurance (Medicare Part B) Benefits Required by Law: Workers’ Compensation State programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors. Operate under a principle of no-fault
