T8: Employee Benefits and Services

Question 1

Recap the components of Total Compensation are (3)

Answer 1

Direct Financial (pay)
Indirect financial (benefit/services)
Non-financial (job/env)

Question 2

What are employee benefits?

Answer 2

Non Wage compensations provided to employees in addition to their normal salaries

(like dental, health insurance, vacation leave)

Question 3

IMPT- Role of Benefits (3)

Answer 3

Legal requirements
Non-taxable compensation
Social Responsibility

Question 4

The 5 key issues in benefit planning and design

Answer 4

• How to attract gud employees
• Integrating benefits with other compensation components
• Strategies for ensuring external competiveness
• Ensuring that benefits are adequate
• Whether employee benefits are cost justified

Question 5

Four major issues in setting up benefits package

Answer 5

• Who should be protected/benefited
• How much choice employees have among benefits
• Financing of benefits
• Are the benefits legally defensible

Question 6

Employer Factors to consider (5)

Answer 6

1. R/s to Total compensation costs
2. cost relative to benefits
3. Competitor offerings
4. Role of benefits in attraction, retention and motivation
5. Legal Requirements

Question 7

Employee Factors to consider (2)

Answer 7

1. Equity, fairness

2. Personal Needs of Employees

Question 8

IMPT- Types of Employee Benefits (6)

Answer 8

1. Pay-for-time-not-worked Benefits
   (like annual leave, ph)
2. Insurance Benefits
   (work injury compensation, medical insurance)
3. Retirement and Termination Benefits
   (Employees CPF. Outplacement Advice)
4. Employee Service Benefits
   (Housing loans, study loans, staff purchase discounts)
5. Status Benefits
   (Company cars, country club memberships)
6. Intangible benefits
   (Training and Dev opportunities, empowerment)

Question 9

IMPT- Three Administrative considerations to administering the benefits program

Answer 9

• Communicating about the benefits prog
• Claims processing
• Cost containment

Question 10

Communicating about the benefits prog

Methods of Comm are…. (5)

Answer 10

Employee handbook
Personalised benefit statements
meetings with employees
Multi-media presentations
Intranet

Question 11

Claims processing must do these three things:

Answer 11

• Determine whether the act has in fact occurred
• Determine if the employee is eligible for the benefit
• Calculate the payment level

Question 12

4 Prevalent practices for cost containment

Answer 12

Probationary periods
Benefits Limitations
Co-pay
Administrative cost containment

Question 13

What is the objective of a flexible benefit plan?

Answer 13

To meet the diverse needs of employees

Question 14

IMPT- Adv to flexible benefits plan

Answer 14

• Choose packages to satisfy employees’ unique needs
• Employee awareness of benefits and costs
• Meets changing needs of a changing workforce
• Cost containment

Question 15

IMPT- Disadv of flexible benefits plan

Answer 15

• Employees might select inappropriate benefits
• Record keeping more complex
• MB more ex to administer

Question 16

IMPT- Features of a Flexible benefirs plan (4)

Answer 16

Core benefits
Optional benefits
Credit Points
Spending account