MHR 523 Lecture Notes - Lecture 8: Job Satisfaction, Defined Benefit Pension Plan, Critical Illness Insurance

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28 Jun 2018

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Lecture 8: Employee Benefits and Services

Employee rewards

1. Compensation

a. Incentives

2. Benefits

3. Work-life programs

4. Performance and recognition

5. Development and career opportunities

Employee benefits

- Indirect financial payments given to employees. They may include supplementary health

and life insurance, vacation, pension plans, education plans and discounts on company

products

- Pull employees to organization

- Promote brand

- Make employees happy

- Can attract certain employee

- Teach employees more about company

Why don’t organizations offer the value of their benefits in dollars?

- Employees learning more about program/service/company

- Different rewards attract different people, can motivate group I want to work

- Offering benefits can help attract certain people

Government mandated benefits

- Employers, employees and general tax revenues provide funding for government social

programs to protect citizens that cannot earn in income

- Employee insurance (EI)- if you lose job you would make some money, idea if you’re

working somewhere and get fired because it wasn’t your fault they have to pay you

- Pay on termination of employment- reasonable notice, severance pay, pay for mass

layoffs, given money if let go

- Leaves of absence- take a leave and guarantee job when you return

- Canada/Quebec Pension Plan (C/QPP)

- Vacation and holidays

- Paid breaks

- Workers compensation- someone will pay wage, benefits etc. if you get hurt at job

- Paid time off

Employee insurance (IE)

- A federal program that provides income benefits if a person is unable to work through no

fault of his or her own

- Not payable when employees are terminated for just cause or quit for no good reason

- Provides employees laid off, terminated without just cause or who quit their job for a

justifiable reason with an alternative form of government income until they secure

employment

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- Eligibility- only eligible if you have paid into the account, have worked a minimum

number of hours in a specific time, and are willing and able to work

- Generally, 55 percent of average earnings during the last 14 to 45 weeks of the qualifying

period or maximum weekly rate

- To continue receiving EI, individuals must demonstrate that they are actively seeking

work

- To receive benefits, an employee must have worked a minimum number of hours during

a minimum number of weeks (qualifying period)

- Benefit period

- Funding: funded by contributions from eligible employees and their employers

- Employers pay 1.4 times the employee’s contribution

- Employer contributions can be reduced if the employer provides a wage loss replacement

plan for employee sick leave

- Supplemental unemployment benefit (SUB): an agreement between an employer and the

employees (often the result of collective bargaining) for a plan that enables employees

who are eligible for EI benefits to receive additional benefits from a SUB fund created by

the employer

- SUB funds help employees maintain their standard of living during periods of

unemployment (maternity leave) by receiving a combined benefit closer to their actual

working wage

- Canada Employment Insurance Commission must approve SUB plans and work sharing

programs

Pay on termination of employment

- Employment/labour legislation requires that employees whose employment is being

terminated by the employer be provided with termination pay when they leave

- Does not apply to those on short-term contract or fired for just cause

- Amount of payment varies according to jurisdiction and circumstances

Pay in lieu of reasonable notice

- Must provide employee with advanced written notice if employer is going to terminate

employee, unless the employee is working on a short term contract or is being fired for

just cause

- In practice many employers do not provide advanced written notice, instead they ask the

employee to cease work immediately and provide the employee with a lump sum equal to

their pay for the notice period

Severance pay (Ontario and federal jurisdiction only)

- Severance pay in addition to pay in lieu of notice in certain termination situations

- Additional payout on top of the minimum notice period requirements and only applies if

the specific conditions in the applicable jurisdiction are met (employees with 5 or more

years of service may be eligible for severance pay if the employer’s annual payroll is 2.5$

million or more, or if the employer is closing down the business and 50 or more

employees will be losing their jobs within a six-month period

Pay for mass layoffs (some jurisdictions)

- BC, Manitoba, Ontario, NB and Newfoundland and Labrador require that additional pay

be provided when a lay-off of 50 or more employees occurs

- Larger layoffs result in longer time to re-employment

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Document Summary

Incentives: benefits, work-life programs, performance and recognition, development and career opportunities. They may include supplementary health and life insurance, vacation, pension plans, education plans and discounts on company products. Different rewards attract different people, can motivate group i want to work. Offering benefits can help attract certain people. Employers, employees and general tax revenues provide funding for government social programs to protect citizens that cannot earn in income. Employee insurance (ei)- if you lose job you would make some money, idea if you"re working somewhere and get fired because it wasn"t your fault they have to pay you. Pay on termination of employment- reasonable notice, severance pay, pay for mass layoffs, given money if let go. Leaves of absence- take a leave and guarantee job when you return. Workers compensation- someone will pay wage, benefits etc. if you get hurt at job.

Related Questions

Read the article below and write a brief (1-2 paragraph) summary. This assignment should be approximately 250 words . Complete this assignment as a Word document.

Time to Scrap Performance Appraisals

Times have changed. More and more companies have decided to radically change (read âscrapâ or âre-engineerâ) their performance appraisal process.

Last week at our research conference we spoke with Adobe, Juniper, Kelly Services, and a variety of other companies who have decided to do away with traditional performance ratings and dramatically change the annual appraisal process.

Our research shows that this is a strong and positive trend.

Why the process must change.

Why do companies have annual reviews in the first place? They are an artifact from traditional top-down organizations where we had to âweed outâ the bottom performers every year. By forcing managers to rate people once per year we can have annual talent reviews and decide who gets more money, who to promote, and who to let go.

Coupled with the performance rating is the âpotentialâ rating, which tries to capture an individualâs potential to move up two levels in the organization (the traditional definition).

This approach is based on a philosophy that â we cant totally trust managersâ so weâre going to force them to fit people into these rating scales. And in many companies (around 20%) there are forced distributions, which mandate that some percent of employees are rated at the bottom and only a limited percent can be rated at the top.

The well publicized problems with this process abound. These include:

Employees need and want regular feedback (daily, weekly), so a once-a-year review is not only too late but itâs often a surprise. Regular coaching is the key to alignment and performance.

Managers cannot typically âjudgeâ an entire year of work from an individual at one time (imagine if your spouse gave you an annual review!), so the annual review is awkward and uncomfortable for both manager and employee.

Manager-employee relationships are not 1:1 like they used to be. We work with many leaders and peers during the year, so one person cannot adequately rate you without lots of peer input.

While some employees are a poor fit and likely are poor performers, these issues should be addressed immediately, not at the end of the year.

Some companies really do have a lot of high performers, so forced ranking eliminates great people and damages the culture.

People are inspired and motivated by positive, constructive feedback â and the âappraisalâ process almost always works against this.

The most valuable part of an appraisal is the âdevelopment planningâ conversation â what can one do to improve performance and engagement â and this is often left to a small box on the review form.

Companies are nervous about eliminating this process because:

We need a fair and validated way to distribute compensation increases (donât we?)

We need a record of low performance when we let someone go

We need to capture performance data in an employeeâs profile for future promotion and other talent reviews, development plans, and career migration

We need a way to make sure managers are doing their jobs well.

Well, Iâve probably discussed these issues with 100+ companies over the last five years and our research shows more and more that companies are ready to let this process go.

Organization structures have changed and companies need to be more agile. We have a shortage of key talent and the keys to success now focus on regular alignment, coaching, creating passion and engagement, and continuous employee development.

The new keys to success:

Develop a âfeedback-richâ culture and set of tools (often online, sometimes formal, often informal) that encourages all employees to give each other feedback. Tools from companies like Achievers, Globoforce, and most HR software vendors now enable and make this easy.

Separate the discussions about performance from discussions about potential and future career plans. Yes we need to evaluate people when raise time comes, but that can be a totally different conversation from.

Talk about performance regularly and let employees create their own goals on a regular basis. Force managers to provide ongoing feedback and teach them how to have honest conversations.

Assume that employees already know something about their own performance, and force them to self-assess. People tend to have a good idea of their own strengths and weaknesses â give them an open and positive opportunity to share it. That starts the dialogue about expectations and the match between their self-assessment and that of the organization.

Enable managers to assess performance regularly. Software teams now use Agile tools which evaluate code on a weekly basis. Managers should be giving people feedback regularly. If they learn to do this on a regular basis it will get easier and employees will learn to appreciate it.

Focus managers on hiring the best, so they build a team which strives for 100% high performers. This is never possible of course, but rather than assuming that 20% of your employees will perform poorly, spend more time on assessment, culture, and fit to make sure very few low performers make it into the organization in the first place.

Remember that everyone wants to succeed. If they arenât performing well itâs not necessarily their fault â the organization should take responsibility for helping them find a better fit if possible.

Set and reset goals frequently. Companies that set performance goals quarterly generate 31% greater returns from their performance process than those who do it annually, and those who do it monthly get even better results. This means employees get feedback on a continuous basis (most sales organizations work this way). Read our research for more details.

Beware of pay for performance plans. While many companies (particularly investment banking, sales) have large pay for performance plans, research showsthat these can create perverse behavior. People focus on their own goals at the expense of the organization. In sales related roles this process works well â when you move to customer service, engineering, and other âbuilderâ roles they can create problems.

Give your leaders a cultural framework and set of values to work from. Companies like Juniper and Deckers (Uggs shoes) focus very heavily on corporate values, forcing managers to hire and manage to these values. This makes selection easier and enables us to evaluate and coach people against higher level frameworks.

Invest in leadership development. Being a manager is a tough job. Managers at all levels struggle with selection, hiring, training, coaching, and evaluation. Give them time and tools to learn, a framework for feedback, and a continuous development process so they learn how to become better.

Reward talent âproductionâ not talent âhoarding.â If you pay your managers to âproduce output,â they will focus heavily on talent performance and evaluation. This may be a good thing, but ultimately companies thrive by building skills â so in addition to encouraging managers to produce good work, incent them to produce good talent as well.

Iâve had the opportunity to study HR and performance management for almost 15 years now, and this topic has been controversial for a long time. In todayâs globalized,talent constrained workplace itâs clear to me that the traditional appraisal has to change.

Businesses thrive on agility, speed, passion, and alignment. The process of driving and measuring performance has to do the same.

MHR 523 Lecture Notes - Lecture 8: Job Satisfaction, Defined Benefit Pension Plan, Critical Illness Insurance

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