Question

Please Answer These: Book is Human Resource Management | 16th Edition by Sean Valentine/Patricia Meglich/Robert L. Mathis/John H. Jackson

1. Define employee benefits

2. Identify four strategic benefit considerations.

3. Identify and describe the methods employers use to reduce rising healthcare costs.

Answer 1

1) Employee benefits are benefits in kind which iclude different types of compensation given to employees by employers , in addition to their wages and saries ie over and above their regular salary and wages. For example-life insurance, retirement benefit, healthcare coverage etc.

2)4 strategic benefit considerations-

Controlling health care cost-Employers contribute a amount of money to their employees to cover expenses related to health. The employees will have to choose whren to use or not to use health care benefits.

Time off benefits like holiday pay when employees can take off with pay and enjoy holiday with their families.

Providing relocation expenses and educational assistance to employees.

Personal benefits given to employees by translating the benefits into dollars to show their worth.

3)The strategies are, employers move to a co insurance program where employees pay a percentage of cost for health care services given to them.Next employers increase the out of pocket maximums and also increase deductibles.Again employers try to increase cost sharing of employees for non -net work providers.For use of brand name prescription drugs and use of generic drugs , the employers resort to cost sharing with employees. So by  increasing cost sharing with employees , employers plan to reduce cost of health care.