Deck 12: Employee Benefits and Services

Question 1

Discuss the implications of the Family and Medical Leave Act for a small firm and for a family.

Answer 1

FMLA legislation stipulates that most employers with 50 or more employees must provide up to 12 weeks of unpaid leave to eligible employees during any 12-month period. The employer must continue group health insurance during the leave, and the employee must be allowed to return to the same or an equivalent job.
These requirements are especially significant for small to medium-sized firms, which may not be able to meet all of the Act's requirements.
From a family's standpoint, FMLA may be a lifesaver literally. It gives people the necessary breathing room to make caring for themselves or a sick family member a top priority.

Question 2

What factors make health insurance such an expensive benefit to provide?

Answer 2

The health care insurance will vary from one company to other. Healthcare coverage include main medical cost, hospitalization like room and hospital maintenance charges and clinical fees.
The factors which make health insurance such as expensive benefit to provide are mentioned as below:
1. The labor cost of employees working in the healthcare departments are increasing.
2. The advancement of medical technology and the cost of testing and medicines has increased.
3. The health care insurance is not paid directly by the employees, their health insurance is paid by the employers. So many employees are disconnected on taking decision on their coverages.
4. The health insurance company lack their transparency in revealing their cost and the quality which is provided with limited information.

Question 3

What services do you think are most important to today's increasingly diverse workforce? Why?

Answer 3

Workplace diversity means an employer employing individuals with distinct characteristics. Diversity in organization means the employees working in the organization are of varying religion, gender, race language and education.
The services which are important in today's diverse workforce are mentioned as below:
1. Allowing flexible working options for employees having children, illness or disability or taking care of ill family members. This help the employee to adjust the schedule and his or her location according to their individual requirements.
2. Implementing benefits which allow the employees to take day off for their cultural or religious festivals. The employer can include floating holidays which help the employees to take leave as per their wish.
3. Providing financial benefit for different age group people. The benefits are like retirement benefits, medical programs and student loan assistance.
By providing services for diverse workforce the employers will get a person who is ready to perform their best and will be completely focused on their work. It makes the employees to be more engaged and make them feel more respected. it will not let the skilled employees to leave the company. The services will also attract new employees and it improves the recruitment in organization.

Question 4

What are the cornerstones of retirement income? How stable is each one?

Question 5

Outline some proactive steps managers should take in managing a benefits program. Why is each step important?

Question 6

Is it ethical for a company to promise benefits and then years later walk away from the promise? Discuss.

Question 7

Should the government pay for all pension guarantees?

Question 8

Why is retiree health care coverage easier to eliminate than pension benefits?

Question 9

Differentiate between indirect financial compensation from wages and salaries. Why are decisions about indirect compensation decisions more complex than decisions about other forms of compensation?

Question 10

Can employers pay out the pension benefits they have promised? If they can't, what should be done for retirees who are left without their pension benefits?

Question 11

What is meant by the term mandated benefit ? Describe government-mandated benefits. What are the advantages and disadvantages of each?

Question 12

What three general types of benefits do most medium-sized and large firms provide voluntarily? Describe each briefly.

Question 13

What is meant when it is said that many employees view employee benefits and services as entitlements? How can employers make employees realize that benefits and services must be earned?