Exam 11: Employee Benefits

The government provides financial contributions for the Canada Pension Plan.

It is primarily the responsibility of the employee to remain informed about the benefits he or she receives.

What are the two critical factors considered when determining the amount of employment insurance to be paid to unemployed applicants?

Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost non-existent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients. -Refer to Scenario 11.1. Canadian Fasteners wants to take into consideration changes in the diversity and lifestyles of its workforce. Which of the following would be the best option for the company?

Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "Generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and Work-Life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs. -Refer to Scenario 11.2. In order to promote Work-Life balance at BPBI, management has decided to adopt more creative and unusual benefits as a way to deter turnover. Which of the following would be most welcomed by "Generation Y" employees?

At the present time, employers are required to provide pension plans to all full-time employees.

Since provincial health care benefits cover basic health care services, very few employers offer supplementary health benefits.

Explain the concept of family-friendly benefits. Name and discuss at least five of these benefits employers offer their employees.

Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost non-existent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients. -Refer to Scenario 11.1. Canadian Fasteners is a small-size firm that still needs to monitor its costs. Which of the following would be most cost-effective for the company?

Because of added expenses and complicated governmental rules, defined-benefit pension plans are falling out of use.

Most pension plans are now viewed as providing deferred income that employees accumulate during their working life and that belongs to them after a specified number of years of service. What view is this based on?

Employee benefits are a form of indirect compensation.

Benefit packages of any kind still help employers attract and retain quality employees.

What is an important factor in determining the effectiveness of benefits programs in organizations?

From a pension perspective, what is a key issue concerning the aging of baby boomers in Canada?

ABC Corporation uses the services of professional benefits vendors to administer their benefits. What is this practice a form of?

List the key advantages and disadvantages of flexible benefits plans.

Which of these statements best describes management concerns about benefits?

In Canada, registered retirement savings plans (RRSPs) have grown significantly over the past few years. What is a key reason for this growth?

Canadian employees may retire at age 45 and begin drawing a reduced pension from CPP/QPP and other sources such as RRSPs.