After reading chapter 12, you should be able to: Discuss the connection between incentive pay and employee performance, describe how organizations recognize individual performance, identify ways to recognize group performance, explain how organizations link pay to their overall performance,. | Chapter 12 Employee Benefits 1 Employee Benefits Have become important tools for recruiting and retention of qualified workers Do not directly affect a worker’s performance, but inadequate benefits lead to employee dissatisfaction Competition for the best employees required employers to offer creative benefit packages Introduction 2 Fundamentals of Human Resource Management 11e Benefit and service offerings add about 30% to an organization’s payroll cost Benefits may become the focus of negotiations with employees when large wage and salary increases are not feasible Introduction 3 Fundamentals of Human Resource Management 11e Some of the benefits we enjoy today were established under Franklin Roosevelt’s New Deal as a response to the Great Depression-- most notably unemployment insurance and social security. To get a taste of this extraordinary time, watch Benefits are approximately 30% of total compensation Introduction 4 Fundamentals of Human Resource Management 11e Social Security Financed by equal employee and employer contributions, based on a percentage of earnings Provides income for retirees, disabled workers and surviving dependents Provides some health insurance coverage through Medicare Social Security Administration website: Click here Legally Required Benefits 5 Fundamentals of Human Resource Management 11e Unemployment Compensation Funded by employers who pay combined federal and state tax imposed on taxable wage base Tax varies based on organization’s unemployment experience: the more layoffs, the higher the rate Provides employees with some income continuation during periods of involuntary unemployment Typical coverage is for 26 weeks May be extended beyond 26 weeks when unemployment is high Legally Required Benefits 6 Fundamentals of Human Resource Management 11e Requirements to Receiving Unemployment Benefits: Involuntary loss of job (but not having been fired) Must have worked a minimum number of weeks | Chapter 12 Employee Benefits 1 Employee Benefits Have become important tools for recruiting and retention of qualified workers Do not directly affect a worker’s performance, but inadequate benefits lead to employee dissatisfaction Competition for the best employees required employers to offer creative benefit packages Introduction 2 Fundamentals of Human Resource Management 11e Benefit and service offerings add about 30% to an organization’s payroll cost Benefits may become the focus of negotiations with employees when large wage and salary increases are not feasible Introduction 3 Fundamentals of Human Resource Management 11e Some of the benefits we enjoy today were established under Franklin Roosevelt’s New Deal as a response to the Great Depression-- most notably unemployment insurance and social security. To get a taste of this extraordinary time, watch Benefits are approximately 30% of total compensation Introduction 4 Fundamentals of .
