Скачать или смотреть Defining and Exploring Employee Benefits

Benefits professionals play a key role in educating employees about benefit plan features and helping them make informed choices. Employee benefits are a major part of total compensation, and professionals must navigate complex offerings to help employees maximize their value. Establishing benefits programs is complex, involving multiple factors and strategic decisions. The field is highly regulated, and benefits practices vary widely across employers due to customization for workforce needs.

Many benefits originated as responses to government mandates and are now also used to stay competitive and enhance public image. Employee benefits are defined as non-wage compensation like health insurance, paid time off, and tuition reimbursement. Benefits are commonly categorized by function (protection, time off, enhancement) and source (legally required or discretionary). Legally required benefits include programs like Social Security and Medicare, while discretionary benefits are offered voluntarily by employers.

Benefits are part of a company’s total compensation system, which includes monetary and nonmonetary rewards. Core compensation includes base pay, which may be hourly (wage) or salaried, and is adjusted through COLAs, seniority, merit, or performance. Person-focused pay compensates employees for acquiring new knowledge or skills, emphasizing potential rather than past performance. Merit pay and incentive pay reward actual job performance.