Compenstation Management Assignment 3
1.Describe how a flexible benefits plan might increase worker satisfaction with benefits at the same time that costs are being reduced. (5 marks)
Flexible benefits can increase worker satisfaction by involving the working in the decision making process. Employees are able to choose a package or benefits that suit their unique needs, this can make an employee feel more heard by their employer and more understood, and also provides a better understanding of what benefits actually cost a company and a great awareness can be accomplished.
Flexible benefits can also at the same time reduce costs. This is achieved by a lower administration cost when introducing new benefits because other benefits are already in place this new benefit would just be an addition. Flexible benefits can also be save money because employees are only choosing the benefits that they want and need so the company isn’t paying for benefits that are maybe not required or the benefits are already covered by the spouses benefit plan.
2.Explain how an employee assistance plan could reduce costs for several other benefits. (4 marks)
Employee assistance plans (EAPS) can reduce cost of several other benefits such as medical/dental, WSIB, EI. EAPS include programs such as counselling and/or treatment substance abuse, legal problems, marital and or family. These programs can reduce the costs of other benefits by helping to work out some of the above issues before more serious medical problems arise. For example if an employee has a problem with drugs and it goes untreated the employee continues to use drugs while at work, while under the influence of drugs falls off a platform and breaks a leg, and smashes in his face. That employee now needs medical care to cover the cost of surgery and hospital stay and rehabilitation therapy, dental costs to fix his broken teeth, WSIB to cover the lost wages, EI to cover long term care leave because this person is unable to return to full
Flexible benefits can increase worker satisfaction by involving the working in the decision making process. Employees are able to choose a package or benefits that suit their unique needs, this can make an employee feel more heard by their employer and more understood, and also provides a better understanding of what benefits actually cost a company and a great awareness can be accomplished.
Flexible benefits can also at the same time reduce costs. This is achieved by a lower administration cost when introducing new benefits because other benefits are already in place this new benefit would just be an addition. Flexible benefits can also be save money because employees are only choosing the benefits that they want and need so the company isn’t paying for benefits that are maybe not required or the benefits are already covered by the spouses benefit plan.
2.Explain how an employee assistance plan could reduce costs for several other benefits. (4 marks)
Employee assistance plans (EAPS) can reduce cost of several other benefits such as medical/dental, WSIB, EI. EAPS include programs such as counselling and/or treatment substance abuse, legal problems, marital and or family. These programs can reduce the costs of other benefits by helping to work out some of the above issues before more serious medical problems arise. For example if an employee has a problem with drugs and it goes untreated the employee continues to use drugs while at work, while under the influence of drugs falls off a platform and breaks a leg, and smashes in his face. That employee now needs medical care to cover the cost of surgery and hospital stay and rehabilitation therapy, dental costs to fix his broken teeth, WSIB to cover the lost wages, EI to cover long term care leave because this person is unable to return to full