Please summarize Chapter 11 of the text ' Managing Human Resources' by Snell and Bohlander.

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Below are the objectives for chapter 11

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(11 Employee Benefits LEARNING OUTCOME1 Employee benefits were not al. ways the norm in America. The situation changed in 1935 with the passage of the Social Security Act. However, benefits can add 30-40 percent or more to a company's payroll costs, and they continue to climb faster than the rate of inflation. As a result, firms look closely at their benefit costs. LEARNING OUTCOME A variety of factors need to be considered when designing a strategic benefits plan. Included among them are the relative pref- crence shown for each benefit by managers and employees, the estimated cost of cach bencfit and the total amount of money available for the en- tite benefits package, and how it compares to the 506 PART 4 Implementing Compensation and Security competition. Through committees and surveys, a are vacations with pay, paid holidays, sick leave and benefits package can be developed to meet employ severance pay. Some companies offer their employ ces needs. Through the use of flexible benefit. or ees paid sabbaticals. A typical practice in the United cafeteria, plans, employees are able to choose the States is to give employees ten days of vacation leave benefits thar are best suited for their individual and ten holidays. In addition to vacation time, most needs. An important factor in how employees view employees, particularly in white collar jobs, receive a the program is the full communication of benefits set number of sick leave days. A one-time payment information through various means and personal of severance pay may be given to employees who are ized benefits statements. Online systems have also being terminated. helped with the communication process and made it easier for HR departments to administer em LEARNING OUTCOME O For most professions in the ployee benefits. United States, there is no mandatory retirement age. The topics covered can include pension plans. LEARNING OUTCOME Nearly a quarter of the benefits health insurance coverage. Social Security and package that employers provide is legally required. Medicare, personal financial planning wellness and These benefits include employer contributions to lifestyles, and the general process of adjusting to Social Security unemployment insurance, workers retirement compensation insurance, and state disability insur- ance. Social Security taxes collected from employ- ULARNING OUTCOME 7 Whether to offer a person plan ers and employees are used to pay three major types of benefits: (1) retirement benefits. (2) disability is the employer's prerogative. However, once a plan benefits, and (3) survivors benefits. Payroll deduc is established, it is then subject to federal regulation tions and taxes are also legally required to fund the under ERISA to ensure that benefits will be avail government program, Medicare. Medicare provides able when an employee retires. Two pension plans medical and hospital insurance and prescription are available-defined benefit and defined contri drug coverage for people over 65. bution. With a defined benefit plan, the amount an employee receives on retirement is based on years of service, average camnings, and age at time of retine LEARNING CUTCOME A The cost of health care pro ment. Two of the most significant trends are the grams has become the major concern in the area of growth of 401(k) plans and cash balance pension employee benefits. Organizations are taking a vari plans, both of which are defined contribution plans. ety of approaches to contain health care costs. They A concern today is the underfunding of pension include using health maintenance and preferred plans and the ability of the PGCA to meet its finan provider organizations and high-deductible health cial obligations plans as well as reducing employees coverage and in- creasing their deductibles or copayments. Employee LEARNING OUTCOME B The types of service benefits assistance programs, disease management and well- ness programs, and value-based initiatives that targer that employers typically provide include employee the specific health needs of an employer's workers assistance programs, counseling services, educational assistance plans, child care, and elder care. Other are other approaches. benefits are food services, onsite health services, pre- paid legal services, financial planning housing and LEARNING OUTCOMES Included in the category of moving, transportation pooling purchase assistance. benefits that involve payments for time not worked credit unions, and social and recreational services