MANA 443 Lecture Notes - Lecture 9: Pension, Unemployment Benefits, Employee Benefits

• School: Concordia University
• Department: Management
• Course: MANA 443
• Professor: Adeline Saillard

Document Summary

Part of the total compensation package, other than pay for time worked. Includes life insurance, pension plan, workers" compensation, vacation. Provided to employees in whole or in part by employer payments (e. g. , health and dental insurance, life insurance, pension plan, sickness benefits, workers" compensation, paid vacation) Very costly; can vary between 20-40% of employer"s payroll. The single biggest issue in benefits today is affordability: The cost of benefits, particularly health care, is rising faster than almost any other expense on the company"s income statement. Increasing at a rate higher than companies can raise the price of their products/services. In other cases, there are legacy costs (costs for existing retirees and promises already made for future retirees) that are so large they threaten the company"s viability (very rare now, was common in the car industry) Good rule of thumb is that benefits costs are about 30-40% of salary. Can obviously be more or less depending on the company"s benefits offering.