Chapter 11

Learning Outcomes

  • LO1: Key aspects of the strategic benefits planning process.

  • LO2: Employee benefits required by law.

  • LO3: Key discretionary employee benefits.

  • LO4: Types of retirement programs and management of pension plans.

  • LO5: Types of work-life benefits provided by employers.

Employee Benefits Overview

  • Employee benefits enhance work and personal life quality.

  • Account for 20-25% of total payroll costs.

  • Effectiveness relies on benefit selection and administration.

Objectives of Benefits Programs

  • Improve employee satisfaction.

  • Meet health and security requirements.

  • Attract, motivate, and retain employees.

  • Maintain competitive position.

Strategic Benefits Planning

  • Involves consultation with employees to determine needs.

  • Must reflect social changes and workforce diversity.

Flexible Benefit Plans

  • Core benefits (life/health insurance, sick leave, vacation).

  • Employees can choose benefits suited to their needs via credits.

Communication of Employee Benefits

  • Use handbooks, meetings, online modules, and brochures.

  • Employ multiple media for effective communication.

Cost Management Strategies

  • Adjust contributions, salary caps, and coverage limits.

  • Utilize preferred providers for healthcare.

Mandatory Benefits in Canada

  • Canada and Quebec Pension Plans (CPP/QPP).

  • Employment Insurance (EI).

  • Workers’ Compensation Insurance.

  • Provincial Medical Services Plan.

  • Employment Standards Act.

Discretionary Employee Benefits

  • Health and dental benefits (extended health, disability).

  • Paid time off (vacation, sick leave, parental leave).

  • Pension plans (contributory/non-contributory, defined benefit/contribution).

  • Employee services (EAP, wellness programs).

Types of Pension Plans

  • Contributory: joint employee and employer contributions.

  • Non-contributory: employer-only contributions.

  • Defined Benefit (DB) plans: fixed retirement benefits.

  • Defined Contribution (DC) plans: benefits based on contribution.

Employee Services and Work-Life Benefits

  • Fostering family-friendly environments.

  • Services for elder care and wellness initiatives.

Employer Branding through Benefits

  • Competitive benefits attract top talent.

  • Salary and benefits are key factors for job seekers.