Deck 11: Employee Benefits

Question 1

Which of the following do employers often use to obtain employee input regarding benefits packages?

A) performance appraisals
B) opinion surveys
C) union reports
D) psychological tests

Answer 1

B

Question 2

Legally required employee benefits amount to about 12 percent of the benefits packages that Canadian employers provide. Which benefit is not required?

A) employer contributions
B) employment insurance
C) workers' compensation insurance
D) retirement savings

Answer 2

D

Question 3

What is the approximate cost of benefits as a percentage of total payroll cost in Canadian organizations?

A) 28 percent
B) 20-25 percent
C) 30-35 percent
D) 66 percent

Answer 3

B

Question 4

Susie Jones has definite preferences in terms of the benefits offered by her employer. Susie will be able to select the benefits she values highly and avoid those she does not need or want if her employer offers which benefit format?

A) an employee selection plan
B) a flexible benefits plan
C) a benefit pool
D) a modified benefits system

Question 5

Which of the following is NOT necessary for an organization to consider when developing its benefits program?

A) the associated costs
B) tax consequences
C) benefits other employers offer
D) the globalization of benefits

Question 6

The Meat Shop, one of Canada's best employers according to a recent survey, is considering ways to contain its rising benefits costs. What is NOT a wise option for the Meat Shop?

A) making contribution changes, such as deductibles
B) putting dollar limits on some benefits
C) instituting flexible benefits
D) making cuts to mandatory benefits

Question 7

For which key reason do employers need to communicate the extent and value of the benefits they provide?

A) It is required by the law.
B) Employees generally underestimate the value of the benefits offered.
C) It immediately reduces the overall costs.
D) The HR department needs this information for its newsletters.

Question 8

Workers' compensation covers certain work-related examples of which of the following?

A) lawsuits
B) misunderstandings
C) pay inequities
D) illnesses

Question 9

Management at ABC Inc. wants to introduce a new benefit that is not required by law. What should it do first?

A) develop an HRIS system to help with its administration
B) establish that there is a need for it
C) lobby the government to make it mandatory
D) hire a consulting firm to roll it out

Question 10

Ideally, which of the following should apply to an organization's benefits system?

A) It should mirror that of the competition, so as to attract top applicants.
B) It should be restricted to mandatory benefits.
C) It should be aligned to the overall strategy of the organization.
D) It should be more than 50 percent of payroll costs, so as to be competitive.

Question 11

Many organizations use the services of professional benefits vendors to administer their benefits. What is this practice a form of?

A) freelancing
B) merger
C) outsourcing
D) employee empowerment

Question 12

Which would NOT be considered a primary objective of most benefits programs?

A) reducing turnover
B) improving employee satisfaction
C) retaining top-performing employees
D) attracting and motivating employees

Question 13

Which of the following is a fast, convenient, and interactive way employees can learn about or change their benefits?

A) a benefits information packet
B) personal benefit profiles
C) infrequent information stations
D) employee self-service (ESS) systems

Question 14

Which of the following is NOT a benefit provided under CPP/QPP?

A) retirement pensions
B) sick leave benefits
C) survivors' benefits
D) disability benefits

Question 15

How has the diverse workforce impacted benefits programs?

A) by requiring benefit programs to consider family-friendly options
B) by requiring lower out-of-pocket costs for employees
C) by requiring greater pension contributions by employers
D) by requiring benefits packages to cover part-time as well as full-time employees

Question 16

Which statement best describes flexible benefit plans?

A) They are offered to employees who then must purchase each benefit they select.
B) They are favoured by employers because they reduce administration costs.
C) They are offered as a bonus to executives.
D) They allow employees to choose benefits suited to their needs.

Question 17

A large portion of an organization's total payroll is devoted to employee benefits and this figure has risen over the past few decades. Which of the following has NOT contributed to this increasing cost?

A) additional benefits offered voluntarily by organizations
B) legislation forcing employers to establish some benefits
C) the use of online, interactive benefits programs
D) employers trying to match the competition

Question 18

Which statement does NOT describe workers' compensation?

A) All employers pay the same premium rate to be eligible for workers' compensation.
B) Employers share collective liability, though contributions may vary among employers in the same industry.
C) Workers' compensation is based on loss of earnings.
D) The system is no-fault and nonadversarial, and thus offers no recourse to the courts.

Question 19

Which of the following statements does NOT describe management concerns about benefits?

A) Management is concerned with union demands.
B) Management is concerned with tax consequences.
C) Management is concerned with the escalating cost of health care benefits.
D) Management is concerned with promoting a shift in mindset from self-responsibility to entitlement.

Question 20

Great Parcel Inc. has numerous office locations across Canada, including isolated areas with no access to the Internet. What would be the most efficient way for the company to communicate a new benefit to all its employees?

A) online modules
B) a meeting in a central location
C) trips by the organization's top executive team to all the locations
D) payroll inserts

Question 21

What is NOT a common reason why employees take early retirement?

A) health
B) personal finances
C) job satisfaction
D) executive perquisites

Question 22

A key issue in the 2009 Toronto municipal workers' strike related to the use of banked sick days. How is the accumulation of sick days generally regarded in the literature?

A) as part of an incentive plan
B) as pay for time not worked
C) as a mandatory benefit
D) as a form of pension

Question 23

Most pension plans are now viewed as providing deferred income that employees accumulate during their working life and that belongs to them after a specified number of years of service. What view is this based on?

A) provincial law
B) a pay-as-you-go philosophy
C) a reward philosophy
D) an earnings philosophy

Question 24

Which type of pension plan with fixed payouts is falling out of use?

A) contributory plan
B) registered retirement savings plan (RRSP)
C) defined-benefit plan
D) defined-contribution plan

Question 25

Tommy Lee remembers his grandfather telling him how working in the coal mines was a tough job and that if you left the employer before retirement age you did not get your pension. Which of the following applies to this type of pension?

A) It is a form of reverse discrimination.
B) It is based on a reward philosophy.
C) It is a defined-benefit plan.
D) It is based on an earnings philosophy.

Question 26

Bob Jones has just been permanently laid off from his present position. His company, ACME Manufacturing, has issued Bob a cheque that represents one month's pay for every year Bob worked at ACME. What does this cheque represent?

A) Bob's unused vacation pay
B) Bob's unused holiday pay
C) Bob's severance pay
D) Bob's unused sick leave

Question 27

Which of the following is based on the theory that work-related accidents and illnesses should be considered a cost of doing business and that employees should not bear the costs of their treatment?

A) workers' compensation insurance
B) paid sick time
C) medical care benefits
D) unpaid leave

Question 28

Omar Morales, an older employee, is considering an early retirement package that his employer has offered; it includes improved benefits and cash bonuses. What is the term for this type of inducement?

A) silver handshake
B) golden parachute
C) platinum cushion
D) severance pay

Question 29

In Canada, registered retirement savings plans (RRSPs)have grown significantly over the past few years. What is a key reason for this growth?

A) Minimum wage earners now have more disposable income and they are contributing.
B) The funds accumulate tax-free until they are withdrawn.
C) The rich-poor gap is narrowing, thus people have more money to invest.
D) RRSPs are a part of stock plans, which are growing.

Question 30

Which of the following is NOT a potential advantage of family-friendly benefits?

A) they help to attract valuable employees
B) they provide higher base pay, which helps with family budgets
C) they allow employees to manage their time better
D) they help to reduce workplace interruptions that affect productivity

Question 31

The growth in health care costs can be attributed to a number of factors. Which of the following is NOT one of those factors?

A) an aging population
B) costs associated with technological advances in medicine
C) overuse of costly health care services
D) the mandatory retirement age

Question 32

Which of the following is NOT an example of family-friendly benefits?

A) employer-provided childcare services
B) flexible work hours
C) subsidized dependant care
D) increased overtime requirements

Question 33

What are holiday pay, sick leave, and vacation pay examples of?

A) payment for time not worked
B) benefits required by law
C) categories of health care benefits
D) unearned benefits

Question 34

What does vesting guarantee?

A) withdrawal of benefits at any time
B) accrued pension benefits at retirement age
C) automatic funding of pension plans
D) selection of pension options

Question 35

Bob Jindal works for RAY Vision Inc. The employer deducts money every month from Bob's paycheque for his pension plan. RAY Vision matches this amount for his pension. What type of plan is this?

A) a defined-benefit plan
B) a defined-contribution plan
C) a contributory plan
D) a noncontributory plan

Question 36

Stella Vickram will receive a pension of $2,500 per month if she continues to work with ABC Media until she retires. She is now 45 years old. What type of plan is this?

A) a contributory plan
B) a noncontributory plan
C) a defined-contribution plan
D) a defined-benefit plan

Question 37

James Callaghan has worked full-time for BC Metals for four years. He has learned from the HR manager that his earned pension benefits cannot be revoked by the employer. Why is this so?

A) because the employer expects him to work until retirement
B) because the benefits are vested
C) because the union would strike if they are revoked
D) because the benefits are defined

Question 38

Polaroid allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work hours as they approach retirement age. What is this an example of?

A) severance leave
B) a preretirement program
C) family-friendly benefits
D) CPP/QPP

Question 39

From a pension perspective, what is a key issue concerning the aging of baby boomers in Canada?

A) There are more demands for dental benefits.
B) Baby boomers are leaving management, thus there is a loss to the HR managers who oversee this benefit.
C) There are fewer contributions to the pension fund by younger generations and more withdrawals for funding pensions for baby boomers, thus putting the fund at risk of depletion.
D) Younger generations are demanding reduced pensions for those leaving the workforce.

Question 40

Employer-sponsored employee assistance programs (EAPs)are created to help workers overcome hurdles in their personal lives. Which employee is the most likely to receive help under a typical EAP?

A) John Jones, who needs assistance to overcome a chemical dependency problem.
B) Steve Brown, who needs legal help in a personal bankruptcy proceeding.
C) Cindy Savage, who needs a list of qualified daycare facilities near the office.
D) Kate Johnson, who needs help choosing an appropriate M.B.A. program.

Question 41

Which of the following is NOT a benefit of family-friendly programs?

A) increasing the risk of unionization
B) reducing tardiness
C) improving productivity
D) reducing employee absenteeism

Question 42

Scenario 11.2
Bradshaw, Petrilli & Blake Inc. (BPBI)is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and work-life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.
Refer to Scenario 11.2. In order to promote work-life balance at BPBI, management has decided to adopt more creative and unusual benefits as a way to deter turnover. Which of the following would be most welcomed by "generation Y" employees?

A) on-site restaurants where employees can have dinner together
B) extended childcare when employees work later hours
C) free baseball tickets for families and friends
D) pay increases to offset the extra overtime hours worked each day

Question 43

Benefit packages of any kind still help employers attract and retain quality employees.

Question 44

Employee benefits typically represent 40 percent of total payroll costs to employers.

Question 45

Scenario 11.2
Bradshaw, Petrilli & Blake Inc. (BPBI)is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and work-life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.
Refer to Scenario 11.2. BPBI would like to also set up an employee assistance program (EAP)to help employees solve their personal problems, or at least prevent those problems from turning into crises that are likely to affect their ability to work productively. Which of the following are programs offered by EAP in today's organizations?

A) seminars and workshops to help prepare for retirement
B) counselling and referral services for alcohol or drug problems, emotional problems, or financial or family crises
C) increased pension benefits or cash bonuses
D) salary continuance programs, sick leave credits, and weekly indemnity plans

Question 46

Many employers provide unneeded and unwanted types of medical benefits to their employees.

Question 47

How are childcare programs and eldercare programs similar?

A) Under both programs, most of the caregivers are men.
B) Both types of programs typically offer on-site care facilities.
C) Both programs try to maintain or increase productivity by assisting employees with their responsibilities outside the workplace.
D) Both programs offer substantial income tax benefits to employees.

Question 48

The collective bargaining agreement between ACME Inc. and the union CUPA 1003 Local requires the employer to provide a limited vision care package. Workers are demanding more. Who will determine any new package?

A) the union and the government
B) the government
C) the employer and the union
D) the employer

Question 49

Employee benefits are a form of indirect compensation.

Question 50

Some benefits are now considered rights to which employees are entitled, rather than a gift of the employer.

Question 51

Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
Refer to Scenario 11.1. Some of Canadian Fasteners' employees have been around since its inception and are well into their late 40s. Which of the following pension plans would be most effective in allowing employees to have a decent pension when they retire?

A) a non-contributory plan
B) a contributory plan
C) a registered retirement savings plans with only the employee contributing
D) a defined non-contributory plan

Question 52

Canada has experienced a growth in the proportion of part-time workers (versus full-time)over the past decade. What is a key reason for this growth?

A) Many full-time jobs are outsourced overseas.
B) The government is forcing firms to hire on a part-time basis.
C) Unions prefer workers to have part-time jobs.
D) Employers tend to save on compensation costs as many part-time workers do not receive voluntary benefits.

Question 53

A primary objective of most benefits programs is to increase turnover.

Question 54

Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
Refer to Scenario 11.1. Canadian Fasteners must ensure that the benefits it offers employees are fulfilling the legal requirements. Which of the following is not legally required?

A) survivor benefits
B) employer contributions to the Canada and Quebec pension plans
C) employment insurance
D) workers' compensation insurance

Question 55

Benefits programs should be based on specific objectives in line with the organization's strategic compensation plan.

Question 56

Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
Refer to Scenario 11.1. Canadian Fasteners wants to take into consideration changes in the diversity and lifestyles of its workforce. Which of the following would be the best option for the company?

A) implementing a defined-benefit program
B) tailoring its benefits programs to be family friendly
C) paying employees money in lieu of benefits
D) continuing with the way it is currently doing things

Question 57

Scenario 11.2
Bradshaw, Petrilli & Blake Inc. (BPBI)is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and work-life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.
Refer to Scenario 11.2. Which of the following is NOT a family-friendly benefit that will help BPBI develop and maintain work-life balance?

A) allowing employees to work from home
B) allowing flexible scheduling of work hours
C) facilitating employer-paid on-site or near-site childcare facilities
D) allowing time off for children's school activities

Question 58

It would be desirable for employers to enlist employee participation in modifying a benefits program.

Question 59

What do mildly ill childcare facilities provide?

A) tax benefits
B) medical supervision
C) a negative investment
D) telecommuting facilities for working parents with ill children

Question 60

Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
Refer to Scenario 11.1. Canadian Fasteners is a small-size firm that still needs to monitor its costs. Which of the following would be most cost-effective for the company?

A) setting up its own in-house system to be administered by the new HR manager and new staff
B) hiring a full-time benefits specialist
C) hiring a professional benefits vendor to administer the plan
D) declining to provide pension and benefits to it employees

Question 61

Employment insurance benefits are available for illness, injury, maternity, parental, and adoption leave.

Question 62

The declining cost of health care benefits provides Canadian organizations opportunities to reduce employee benefit costs.

Question 63

Both employees and employers make contributions toward a workers' compensation fund.

Question 64

The Conference Board of Canada has concluded that it is not possible to contain the cost of employee benefit programs.

Question 65

CPP and QPP have universal portability-that is, an employee has the right to claim benefit credits wherever they are employed in Canada.

Question 66

Employees who resign from a position or who are terminated for cause may not be eligible to collect employment insurance (EI).

Question 67

Many firms outsource their cafeteria plans to a professional vendor because of the complexity of administering the system.

Question 68

Employer health plans are generally restricted to medical, surgical, and hospital expenses.

Question 69

Online benefits programs allow employees self-service freedom and availability virtually any time.

Question 70

People who have been resident in a Canadian province for three months are eligible to receive health care benefits.

Question 71

Only employees contribute to the Employment Insurance (EI)fund.

Question 72

The growth in health care costs can be attributed to a number of factors, including the greater need for health care by an aging population.

Question 73

It is primarily the responsibility of the employee to remain informed about the benefits he or she receives.

Question 74

Workers' compensation insurance is based on a system of individual liability.

Question 75

Flexible benefits plans are also known as "cafeteria" plans.

Question 76

Since provincial health care benefits cover basic health care services, very few employers offer supplementary health benefits.

Question 77

Many employers now offer additional health care benefits such as dental and prescription drug coverage.

Question 78

Legally required benefits amount to 50 percent of the benefits packages that Canadian employers provide.

Question 79

The Canada and Quebec Pension Plans both require employer and employee contributions.

Question 80

To reflect the social changes Canada is facing, employers are increasingly tailoring their benefits programs to be family friendly.