Reference no: EM133163625
Assume that you are an HR professional whose responsibility is to develop a brochure for conveying the value of your company's benefits program to potential employees. Your company has asked you to showcase the benefits programs in a manner that will encourage recruits to join the company. Which features would you showcase to prospective employees? Explain
Chapter Summary by Learning Objectives
Learning Objective 1. Discuss the origins of discretionary benefits. A variety of social and economic factors contributed to companies' adoption of discretionary employee benefit practices. For example, the federal government provided tax incentives to companies that offered benefits. Wage freezes during World War II prompted companies to offset those freezes with new or enhanced benefits.
Learning Objective 2. Explain the three categories of discretionary benefits. The three categories of discretionary benefits include protection programs, paid time off, and services. An example of a protection program is life insurance. Vacation is one among many paid time off benefits. Wellness programs provide important services to employees' health and welfare.
Learning Objective 3. Summarize legislation that pertains to discretionary benefits. A host of laws influence the design and implementation of discretionary benefit practices, including the Internal Revenue Code, the Employee Retirement Income Security Act, and the Pension Protection Act.
Learning Objective 4. Discuss the fundamentals of designing and planning the benefits program. Benefit program design entails consideration of many factors including who is eligible to participate, financing of benefits, employee choice in determining benefits, cost containment methods, and communication plans.
Learning Objective 5. Explain the benefits and costs of discretionary benefits. Discretionary benefits are an essential component of the total compensation system. When designed properly, discretionary benefit practices can help promote behaviors through promoting wellness, financial security, work-life balance, and so forth.