Textbook Notes (363,452)
Canada (158,372)
UOIT (533)
Business (277)
BUSI 2312U (22)
Krasman (12)

Ch10 – Employee Benefits and Services.docx

11 Pages
Unlock Document

BUSI 2312U

Ch10Employee Benefits and ServicesEmployee BenefitsTo many people compensation means pay and anything else provided is often considered so minor that it is called a fringe benefitPaya direct compensation because it is based on critical job factors on performanceBenefits and servicesindirect compensation because they are usually extended as a condition of employment and are not directly related to performance1Ex Insurance income security time off etcBenefits and Corporate StrategyBenefits will not replace performance incentives as motivators but especially for older generations health and pension benefits can make a great difference in corporate loyaltyThe role of Indirect CompensationThey seek to satisfy several objectives1Societal ObjectivesThrough favourable tax treatment employees can receive most benefits taxfree while employers can deduct the cost of benefits as a regular business expenseBenefits and services give many employees financial security against illness disability and retirement 2Organizational ObjectivesIf a company did not offer retirement plans and paid vacations recruits and present employees would work for competitors who did offer these fringesCompensation therefore wouldReduce fatigueDiscourage labour unrestSatisfy employee objectivesAid recruitmentReduce turnoverMinimize overtime cost3Employee ObjectivesMay seek employerprovided benefits and services because of lower costs and availabilitySome may be to obtain benefits and servicesespecially supplementary health and life insurance Legally required benefitsMost of these benefits and services are designed to help employeesIn general government seeks to ensure minimum levels of financial security for the nations workforceLegally required benefits and services are important to the HR department for 2 reasons1Top management holds the HR department responsible for meeting these legal obligations2If the obligations are improperly handled the result can be severe fines and more taxesFinancial SecurityTo protect the wellbeing of society governmental regulations on retirement plans employment insurance disability compensation and health care are imperativeIn Canada unlike US or Western Countries many of the regulations are provincially administeredThe Canada Pension Plan CPP and Quebec Pension Plan QPP
More Less

Related notes for BUSI 2312U

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.