Deck 12: Managing Employee Benefits

Question 1

HR Competencies & Applications: "One Toke over the Line"-No Coverage for Medical Marijuana
Key Competencies: Ethical Practice (Behavioral Competency) and Workplace (Technical Competency)
Drug policies regarding marijuana use vary by state and company, but it is still illegal under federal law. Companies with zero-tolerance drug policies seem to be protected against reimbursement claims for medical marijuana because marijuana use is against company policy and it's a federal crime.
-Have you ever worked for an organization that had a zero-tolerance drug policy? If so, how did the company manage this policy? If not, do you think your employer should have developed such a policy?

Answer 1

Students' answers will vary. Students should consider state law and its effect on the company's drug policy.

Question 2

HR Competencies & Applications: "One Toke over the Line"-No Coverage for Medical Marijuana
Key Competencies: Ethical Practice (Behavioral Competency) and Workplace (Technical Competency)
Drug policies regarding marijuana use vary by state and company, but it is still illegal under federal law. Companies with zero-tolerance drug policies seem to be protected against reimbursement claims for medical marijuana because marijuana use is against company policy and it's a federal crime.
-What should HR professionals and line managers do to better educate themselves about the impact of marijuana use on workers' compensation?

Answer 2

Students' answers will vary. Students should use the search terms "marijuana," "workers' compensation," and the name of your state on the Internet.

Question 3

HR Competencies & Applications: Well-Being Leads to Higher Productivity
Key Competencies: Consultation (Behavioral Competency) and Workplace (Technical Competency)
Companies can address employee well-being by providing on-site fitness programs, flexible work arrangements, mindfulness training, new parent career coaching, financial education, access to healthy food, and quiet spaces to promote healthy sleep habits.
-How would you rate these well-being initiatives in terms of their value to employees? How might an organization implement and promote any of these ideas?

Answer 3

Students' answers will vary. Students could consider how much value these initiatives add to their own lives. Students could explain how organizations implement and promote ideas by thinking from the perspective of an HR professional.

Question 4

HR Competencies & Applications: Well-Being Leads to Higher Productivity
Key Competencies: Consultation (Behavioral Competency) and Workplace (Technical Competency)
Companies can address employee well-being by providing on-site fitness programs, flexible work arrangements, mindfulness training, new parent career coaching, financial education, access to healthy food, and quiet spaces to promote healthy sleep habits.
-What evidence or data would HR professionals need in order to obtain top management buy-in to offer these kinds of programs? If you were an HR professional, what would you do to promote health care in your organization?

Question 5

HR Perspective: Cooking Up Financial Health
A few years ago, Original Rudy's Country Store and Bar-B-Q decided to offer a financial wellness program to its employees. While many companies offer this program as an option, Rudy's decided to go "all in" and make the program mandatory for all employees.
-Do you think requiring participation in financial literacy programs is a good idea? Why or why not?

Question 6

HR Perspective: Cooking Up Financial Health
A few years ago, Original Rudy's Country Store and Bar-B-Q decided to offer a financial wellness program to its employees. While many companies offer this program as an option, Rudy's decided to go "all in" and make the program mandatory for all employees.
-Would you participate in such a program if your employer offered one? Would you need some incentive (financial or otherwise) to participate? If so, what type of incentive would entice you?

Question 7

HR Perspective: Banking on Maternity Assistance
Cincinnati-based Fifth Third Bank introduced a concierge service for expectant and new mothers. Employees can access the services for up to two years. Fifth Third contracted this service out to Best Upon Request, a vendor that specializes in maternity assistance. Nearly 200 employees have participated in the program since it was introduced.
-Do you think companies should be involved in family matters such as maternity planning and adjustment? Do you think that offering such services would be attractive to both male and female employees?

Question 8

HR Perspective: Banking on Maternity Assistance
Cincinnati-based Fifth Third Bank introduced a concierge service for expectant and new mothers. Employees can access the services for up to two years. Fifth Third contracted this service out to Best Upon Request, a vendor that specializes in maternity assistance. Nearly 200 employees have participated in the program since it was introduced.
-What kind of maternity planning support do you think organizations should offer employees? What kinds of cost constraints do you think should be considered?

Question 9

Why are benefits strategically important to employers, and what are some key strategic considerations?

Question 10

Discuss the following statement: "Health care costs are out of control in the United States, and increasing conflicts between employers and employees are likely as employers try to reduce their health benefit costs."

Question 11

Assume that as an HR staff member, you have been asked to research consumer-driven health (CDH) plans because your employer is considering implementing one. Go to a leading benefits information resource, Employee Benefit News, at www.benefitnews.com, and identify elements of a successful CDH plan and some examples of firms that use such a plan.

Question 12

Based on the information discussed in the chapter, how would you oversee the design (or redesign) of a benefits program in a large organization? What issues would you consider?

Question 13

5. Your company now has more than 60 employees. The controller has been handling all of the HR functions, including administration of the company's benefits. You are considering outsourcing the benefit administration function to enable the controller to focus more on the company's accounting needs. Information to assist you in determining the type of services that would best meet the company's needs can be found at www.corbanone.com.
-What are the differences between the services offered by a Human Resources Outsourcing (HRO), Administrative Service Organization (ASO), and Professional Employer Organization (PEO)?

Question 14

5. Your company now has more than 60 employees. The controller has been handling all of the HR functions, including administration of the company's benefits. You are considering outsourcing the benefit administration function to enable the controller to focus more on the company's accounting needs. Information to assist you in determining the type of services that would best meet the company's needs can be found at www.corbanone.com.
-Based upon the company's size and the types of benefits offered, which service will best meet the needs of the company?

Question 15

Case: The City in Red
A funding gap in public pensions has been a major cause of concern for a number of Texas cities, and the various measures taken by city officials to raise pension funds (which, unfortunately, also threaten to cause discontentment with the public) have not yet helped them in grappling with this mounting problem.
-How would you address this pension funding crisis if you were a city official in Houston or Dallas? How would you address this problem if you were a member of one of the public unions?

Question 16

Case: The City in Red
A funding gap in public pensions has been a major cause of concern for a number of Texas cities, and the various measures taken by city officials to raise pension funds (which, unfortunately, also threaten to cause discontentment with the public) have not yet helped them in grappling with this mounting problem.
-What might city residents/citizens do to prevent such problems from occurring? What are the potential challenges associated with your strategy?

Question 17

Limited Taps Technology to Communicate Benefits
This case describes how a company improved its communication with employees to explain their benefit plans. Since the retail chain's workforce is primarily young, part-time workers, the company utilized social media and technology to better reach out to employees and get them more engaged in the employee wellness and benefit plans. (For the case, visit MindTap at www.cengage.com/login.)
-How would you evaluate The Limited's approach for communicating information about benefits to its employees? What might you have done differently if you were an HR professional in the company?

Question 18

Limited Taps Technology to Communicate Benefits
This case describes how a company improved its communication with employees to explain their benefit plans. Since the retail chain's workforce is primarily young, part-time workers, the company utilized social media and technology to better reach out to employees and get them more engaged in the employee wellness and benefit plans. (For the case, visit MindTap at www.cengage.com/login.)
-If you were to use technology to assist with communicating about benefits, how would you approach doing it? What are the potential challenges associated with your strategy?

Question 19

Creative Benefits Tie Employees to the Company
This case investigates how a number of companies offer creative benefits to employees to enhance their work engagement and job performance. (For the case, visit MindTap at www.cengage.com/login.)
-What are the advantages and disadvantages of offering unique and creative benefits to employees?

Question 20

Creative Benefits Tie Employees to the Company
This case investigates how a number of companies offer creative benefits to employees to enhance their work engagement and job performance. (For the case, visit MindTap at www.cengage.com/login.)
-How would an organization determine the types of benefits that employees might want? What methods of collecting this information would you recommend a company use if the goal is to enhance the employer's ability to attract and retain high-quality talent?

Question 21

Creative Benefits Tie Employees to the Company
This case investigates how a number of companies offer creative benefits to employees to enhance their work engagement and job performance. (For the case, visit MindTap at www.cengage.com/login.)
-What are the pros and cons of allowing individual managers to design and offer creative benefits to their employee group? How would it impact overall company morale if the benefit offerings are not universal?

Question 22

Delivering Benefits
This case explores how FedEx provides benefits to its employees. (For the case, visit MindTap at www.cengage.com/login.)
-Why is having multiple health-care plans important for FedEx in slowing down increases in the cost of benefits?

Question 23

Delivering Benefits
This case explores how FedEx provides benefits to its employees. (For the case, visit MindTap at www.cengage.com/login.)
-Discuss how the availability of disease management, training programs, and a nursing hotline might help with health benefits costs.

Question 24

Benefiting Connie
This case describes the problems that can occur when trying to coordinate time-off leaves for employees. (For the case, visit MindTap at www.cengage.com/login.)
-What problems exist with the benefits program offered by the employer, as described in the case?

Question 25

Benefiting Connie
This case describes the problems that can occur when trying to coordinate time-off leaves for employees. (For the case, visit MindTap at www.cengage.com/login.)
-What can be done to deal with Connie and to prevent similar problems from arising with other employees in the future?

Question 26

Strategic Benefits at KPMG Canada
This case explores how KPMG Canada updated its benefit program by involving employees in the design process. (For the case, visit MindTap at www.cengage.com/login.)
-Why is having a competitive benefits package important for KPMG Canada?

Question 27

Strategic Benefits at KPMG Canada
This case explores how KPMG Canada updated its benefit program by involving employees in the design process. (For the case, visit MindTap at www.cengage.com/login.)
-In your opinion, did top leadership at KPMG Canada manage the benefits redesign effort well? What else could the company have offered its employees to keep them satisfied?

Question 28

On the Job Video: Stew Leonard's-Benefits
This short video will help reinforce key points and may prompt additional discussion from the class.
-How would you evaluate the benefits offered by Stew Leonard's? Is there anything you would suggest that could make the benefits package offered by the company more effective, especially in terms of costs?
Stew Leonard's seems to offer quite a comprehensive package of benefits, including medical, dental, vision, disability, life insurance, 401k, and savings and retirement plans. In addition, they have an RN available so that their employees can get preventive care, and they give the employees parties and offer them the opportunity to go on trips with their coworkers in addition to handing out gift cards every year at Thanksgiving. Stew Leonard's also offers tuition reimbursement and on-site training to help employees meet their goals.
In order to control the costs of their benefits, Stew Leonard's could reduce the number of benefits they offer, especially for things like matching 401k rates and training costs. Employees could also be told that they only have a certain amount of money available to spend on benefits and they could decide how to use that money. Finally, Stew Leonard's could ask employees to pay more of the cost of their benefits.

Question 29

On the Job Video: Stew Leonard's-Benefits
This short video will help reinforce key points and may prompt additional discussion from the class.
-Are the benefits discussed in this video voluntary or mandatory? What benefits does Stew Leonard's legally have to provide?
The benefits discussed in this video are all voluntary - the company does not have to offer them, but they do. Legally, the benefits that Stew Leonard's must provide include Social Security and Medicare, workers' compensation, unemployment compensation, and certain medical benefits described under COBRA and HIPAA.

Question 30

On the Job Video: Stew Leonard's-Benefits
This short video will help reinforce key points and may prompt additional discussion from the class.
-Elizabeth Arrellano, the HR Coordinator in Yonkers for Stew Leonard's, says that the company invests in employees but that they also measure the dollars they spend. In particular, she says they look at participation rates for activities and events and at claim dollars for health insurance. Why would these two figures be good ways of measuring whether or not Stew Leonard's investment in benefits was cost effective? What other metrics might the company want to evaluate to determine what payoffs Stew Leonard's was getting from its benefits program?
Participation rates for activities is a good measure of how valuable employees find a particular activity or event. If the participation rate is low, the company might want to substitute that benefit for another one which employees will find more attractive. Claims dollars for health insurance is an important measure because it is directly related to the cost of health insurance. If the company sees that claims dollars are rising, they may want to put a wellness program in place. Falling claims dollars means that company efforts to keep health insurance costs low are succeeding.
Stew Leonard's could use a variety of other metrics to measure the effectiveness of their benefits programs, including benefits as a percent of payroll, benefit costs per full time employee, benefit costs by employee group, benefits administration costs, health care costs per full time employee, retirement plan participation rate, paid time-off utilization, and tuition reimbursement costs.