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Compensation

George Milkovich, Jerry Newman, Barry Gerhart

Chapter 12

The Benefit Determination Process - all with Video Answers

Educators

Chapter Questions

Problem 1

Early in this chapter, we identified five reasons for the historical growth in the size of benefits packages. Which of these reasons still affect the growth of employee benefits today? Which actually might be current reasons for declines in the size of benefit packages?

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06:12

Problem 2

Erinn Kelly, VP of Human Resources at Lawson Chemical, just purchased a local salary survey that has employee benefits data. She was shocked to see that Lawson has a larger benefits bill (38 percent of payroll) than the average in the community ( 31 percent). In a memo to you, she demands an explanation for why our package is significantly bigger. What sound reasons might save you from getting fired?

Jennifer Stoner
Jennifer Stoner
Numerade Educator

Problem 3

You are the benefits manager in a firm metaphorically described as part of the rust belt, in Syracuse, NY. The average age of your 600-person workforce is 43. Eightyeight percent of your workforce is male, and there is hardly any turnover. Not much is happening on the job front. How do these facts influence your decisions about designing an employee benefit program?

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Problem 4

As HR director at Crangle Fixtures, your bonus this year is based on your ability to cut employee benefit costs. Your boss has said that it's okay to shift some of the costs over to employees (right now they pay nothing for their benefits) but that he doesn't want you to overdo it. In other words, at least one-half of your suggestions should not hurt the employee's pocket book. What alternatives do you want to explore, and why?

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01:59

Problem 5

Describe how a benefits program might increase worker attraction, retention, and motivation.

Jennifer Stoner
Jennifer Stoner
Numerade Educator