Legally-required benefits that organizations must provide for employees. You have the opportunity to review the Security Act of 1935, the State Compulsory Disability Laws (Workers Compensation Laws), and the Family and Medical Leave Act of 1993 (FMLA). These were discussed in the context of their implications for strategic compensation and the possible employer approaches to managing these legally required benefits. In Chapter 9 you discussed discretionary (voluntary) benefits such as protection programs (health and welfare based) and paid time off programs. These benefits were reviewed in light of the laws that guide these benefits. ERISA, COBRA, and HIPPA were specifically reviewed in light of their impact on an organization's ability to maintain costs and provide an incentive to attract and retain the desired level of talent into the firm. Given these legal implications on employee benefits several topics arise, two of which are listed below.
Discussion Board:
Address the topics below. In order to participate in a dialogue designed to explore the issues, be sure you respond to at least two of your colleague's responses for each topic. Also, make sure you respond to any questions others may ask of you during this week.
- What role can flexible benefits programs play in alleviating the potential dissatisfaction that goes along with cutting benefits? Should companies move to a flexible benefits approach to "get the most bang for the buck"?
Book: Strategic Compensation: A Human Resource Management