Question 1

To capitalize on the money spent on employee benefits and services,employers must take into account their business objectives.

Accepted Answer

Employers must consider their business objectives when deciding how to utilize employee benefits and services. This ensures that the resources spent on these programs are aligned with the overall goals and strategies of the organization. By doing so, employers can maximize the return on their investment and create a more engaged, productive workforce.

Question 2

Voluntary protection programs,such as health insurance,are legally required.

Accepted Answer

Voluntary protection programs, such as health insurance, are not legally required. They are optional programs that employers may offer to their employees as a benefit.

Question 3

When labor costs are a relatively minor portion of an organization's total costs,providing unusually good benefits and services may provide a competitive advantage that ensures the company is getting the best possible employees.

Accepted Answer

If labor costs are not a significant portion of an organization's total costs, investing in good employee benefits and services may attract high-quality employees, giving the company a competitive advantage.

Question 4

Under The Family and Medical Leave Act of 1993,employers covered under the act do not have to maintain preexisting employee health insurance during the leave period.

Accepted Answer

Employers covered under the Family and Medical Leave Act of 1993 are required to maintain the employee's health insurance during the leave period.

Question 5

To further control the cost of providing health care for their employees,a company might employ the strategy of:

Accepted Answer

All of the strategies mentioned (hospital utilization program, case management, cost sharing with employees, and health promotion initiatives) can be effective in controlling the cost of providing health care for employees. Companies often use a combination of these strategies to achieve the greatest cost savings while still providing quality health care benefits to their employees.

Question 6

Injury or illness that occurs as the result of an on-the-job event usually entitles workers to workers' compensation benefits.

Accepted Answer

This statement is true. Workers' compensation is a type of insurance that provides benefits to employees who are injured or become ill as a result of their work.

Question 7

In order to get the most employee satisfaction from benefits,HR professionals should:

Accepted Answer

To get the most employee satisfaction from benefits, HR professionals should communicate the qualities of existing benefits to employees, conduct employee surveys to determine their needs and preferences, allow employees to select their own benefits based on their individual needs and preferences, and also allow employees' input into benefit design. All of these approaches will help to ensure that employees are able to select benefits that meet their specific needs and preferences, which will ultimately lead to greater job satisfaction, engagement, and retention.

Question 8

Employers use have sought to reduce their costs by shifting some health care costs to employees.Which of the following represent increase costs now paid by employees?

Accepted Answer

All of the options represent increased costs now paid by employees. Increased copays for drugs mean that employees have to pay more for their medications, increased deductibles mean that employees have to pay more out of pocket before their insurance kicks in, increased premium contributions mean that employees have to pay more for their insurance each month, and increased out-of-pocket expenses mean that employees have to pay more for any medical expenses beyond their insurance coverage.

Question 9

Most employees overestimate the cost of health benefits to the organization.

Accepted Answer

The answer of Most employees overestimate the cost of health...

Question 10

Legally required private protection programs include Social Security,unemployment compensation,life insurance,and disability insurance.

Accepted Answer

Legally required private protection programs include Social Security and unemployment compensation, but life insurance and disability insurance are not legally required for all employers to provide.

Question 11

Why are employers willing to invest money in an educational expense allowance for their employees?

Accepted Answer

Providing educational expense allowances to employees can benefit employers in multiple ways. By upgrading employee skills, they can prepare employees for higher positions within the company, minimize skill obsolescence, and help employees deal with changes brought about by new technology or downsizing. Thus, all of the options listed in the answer choices are valid reasons why employers may be willing to invest in these educational expenses.

Question 12

An organization's fundamental values determine how it manages employee benefits and services.

Accepted Answer

An organization's values influence all aspects of its operations, including how it treats its employees and provides benefits and services.

Question 13

As a consequence of rapidly increasing health care costs,employers are starting to reduce employee choices and sometimes even coverage.

Accepted Answer

This statement is true. As health care costs increase, employers may struggle to maintain the same level of coverage and options for their employees. They may need to reduce benefits or narrow the network of providers in order to control costs.

Question 14

Employee assistance programs work with employees with problems that interfere with their performance except for abuse of illegal substances.

Accepted Answer

Employee assistance programs also provide support for employees struggling with substance abuse.

Question 15

To attract and retain talent that is in short supply,a few employers compete successfully by providing new and innovative benefits and services.

Accepted Answer

Providing new and innovative benefits and services can differentiate an employer from others and help attract and retain talent, especially in industries where talent is scarce.

Question 16

With a defined benefit pension plan,the benefits received at retirement vary by the employee's age and length of service.

Accepted Answer

With a defined benefit pension plan, the benefits received at retirement are calculated based on a formula that considers the employee's age, length of service, and salary history. This means that benefits will vary based on these factors, making it a true statement that benefits received at retirement vary by the employee's age and length of service.

Question 17

Driving the desire to offer fewer employee benefits and services are the pressures to attract and retain valued employees and thereby to compete effectively against other employers in the labor market.

Accepted Answer

If employers offer fewer employee benefits and services, it may actually make it harder to attract and retain valued employees and compete effectively in the labor market. Therefore, the statement is false.

Question 18

During the economic boom of the 1990s,employers were relatively generous in offering benefits-a growing economy meant that simply finding enough people to staff organizations required less focus on controlling costs.

Accepted Answer

During the 1990s economic boom, employers were relatively generous in offering benefits as the growing economy made it easier to find enough people to staff organizations, which in turn led to less focus on controlling costs.

Question 19

Under the Employment Retirement Income Security Act,employers are required to accommodate new or transferred employees who wish to deposit funds into the new employer's retirement plan.

Accepted Answer

The Employment Retirement Income Security Act (ERISA) does not mandate employers to accommodate new or transferred employees in depositing funds into the new employer's retirement plan. ERISA primarily sets standards for retirement and health benefit plans in private industry.

Question 20

Because preferred provider organizations (PPOs)are relatively unregulated,employers have a great deal of flexibility in structuring one.

Accepted Answer

PPOs are regulated to some extent by state laws and the Employee Retirement Income Security Act (ERISA), but they still offer more flexibility to employers in terms of plan design and provider networks compared to other types of health insurance plans.

Quiz 12: Providing Benefits and Services