Management Chapter 12 Managing Employee Benefits Engaged And Excited About Their Financial Wellness Programs

Unlock access to all the studying documents.

View Full Document

Chapter 12: Managing Employee Benefits

engaged and excited about their financial wellness programs, such as back-to-school cash

awards, cash for Christmas, and scholarships.

12-8c. Education Assistance

12-8d. Severance Pay

12-9. Family-Oriented Benefits

12-9a. Family and Medical Leave Act

• FMLA covers all federal, state, and private employers with 50 or more employees who

11.

12-9b. Family-Care Benefits

• Some organizations provide specific benefits to support adoption, and some employers

plan to offer assistance for fertility treatments.

HR Perspective: Banking on Maternity Assistance

Chapter 12: Managing Employee Benefits

Cincinnati-based Fifth Third Bank introduced a concierge service for expectant and new

mothers. Employees can access the services for up to two years. Fifth Third contracted this

service out to Best Upon Request, a vendor that specializes in maternity assistance. Nearly 200

employees have participated in the program since it was introduced.

1. Do you think companies should be involved in family matters such as maternity planning

and adjustment? Do you think that offering such services would be attractive to both male

and female employees?

Students’ answers will vary. Students should consider that even employers that are not

involved have to cover employee absences or make other accommodations for events in

employees’ lives.

2. What kind of maternity planning support do you think organizations should offer

employees? What kinds of cost constraints do you think should be considered?

Students’ answers will vary. Students could consider the benefits provided by Fifth Third

Bank. In terms of cost constraints, students should consider the amount spent on an

employee’s pregnancy.

12-10. Paid-Time-Off Benefits

• Paid-time-off benefits include vacation pay, holiday pay, and leaves of absence.

12-10a. Vacation Pay

• Paid vacations are a common benefit.

12-10c. Leaves of Absence

12-10d. Paid-Time-Off Plans

12-10e. Employee-Paid Group Benefits

Critical Thinking Challenges

1. Why are benefits strategically important to employers, and what are some key strategic

considerations?

2. Discuss the following statement: “Health care costs are out of control in the United States,

and increasing conflicts between employers and employees are likely as employers try to

reduce their health benefit costs.”

The costs of health care insurance have escalated at a rate well in excess of inflation for

Chapter 12: Managing Employee Benefits

contributions are made on a tax-deferred basis. Some 401(k) plans also offer the option for

employees to obtain loans from their 401(k) accounts.

As a member of a public union, a student may be willing to compromise and tentatively

accept lower benefits while contributing actively to pension funds until the funding

obligations have been met. They can also choose to purchase government bonds and invest

in 401(k) plans to help the situation.

2. What might city residents/citizens do to prevent such problems from occurring? What are

the potential challenges associated with your strategy?

Students’ answers will vary. Some students may state that citizens need to do their bit and

Supplemental Cases

Limited Taps Technology to Communicate Benefits

This case describes how a company improved its communication with employees to explain their

benefit plans. Since the retail chain’s workforce is primarily young, part-time workers, the

company utilized social media and technology to better reach out to employees and get them

more engaged in the employee wellness and benefit plans. (For the case, visit MindTap® at

1. How would you evaluate The Limited’s approach for communicating information about

benefits to its employees? What might you have done differently if you were an HR

professional in the company?

2. If you were to use technology to assist with communicating about benefits, how would you

approach doing it? What are the potential challenges associated with your strategy?

Chapter 12: Managing Employee Benefits

Creative Benefits Tie Employees to the Company

This case investigates how a number of companies offer creative benefits to employees to

enhance their work engagement and job performance. (For the case, visit MindTap® at

1. What are the advantages and disadvantages of offering unique and creative benefits to

employees?

A unique and creative benefits package helps in attracting the best employees, retaining

employees, and influencing job satisfaction. Such a package can also reinforce an

2. How would an organization determine the types of benefits that employees might want?

What methods of collecting this information would you recommend a company use if the

goal is to enhance the employer’s ability to attract and retain high-quality talent?

Students’ answers will vary. An organization can start with strategic planning, compare its

benefits to a wide range of competitors, hire a benefits consultant, conduct a survey among

3. What are the pros and cons of allowing individual managers to design and offer creative

benefits to their employee group? How would it impact overall company morale if the

benefit offerings are not universal?

Students’ answers will vary. Individual managers can give complete attention to their

Chapter 12: Managing Employee Benefits

each other and this may result in disappointment, greed, and unhealthy competition.

When the benefit offerings are not universal, the company’s costs might rise because it has

to provide different benefits to employees based on the designs made by individual

managers. The process can be long and time-consuming. It can also lead to conflict

between members of different employee teams.

Delivering Benefits

This case explores how FedEx provides benefits to its employees. (For the case, visit MindTap®

1. Why is having multiple health-care plans important for FedEx in slowing down increases

in the cost of benefits?

2. Discuss how the availability of disease management, training programs, and a nursing

hotline might help with health benefits costs.

By establishing services to help employees improve their overall health, employees will

Benefiting Connie

This case describes the problems that can occur when trying to coordinate time-off leaves for

1. What problems exist with the benefits program offered by the employer, as described in the

case?

2. What can be done to deal with Connie and to prevent similar problems from arising with

other employees in the future?

Students’ answers will vary. Some may say that when managers receive complaints from

employees, they should look into the issue carefully. They should listen to what the

Comments

Several problems exist in this firm. First, benefits and the policies associated with them have not

been communicated well. The policies on sick leave obviously are loosely administered and

Strategic Benefits at KPMG Canada

This case explores how KPMG Canada updated its benefit program by involving employees in

1. Why is having a competitive benefits package important for KPMG Canada?

2. In your opinion, did top leadership at KPMG Canada manage the benefits redesign effort

Chapter 12: Managing Employee Benefits

well? What else could the company have offered its employees to keep them satisfied?

Students’ answers will vary. Most students will probably think that KPMG managed the

benefits redesign effort well. They started with strategic planning, compared their benefits

Extra Teaching Video

On the Job Video: Stew Leonard’s–Benefits

This short video will help reinforce key points and may prompt additional discussion from the

class.