Exam 12: The Benefit Determination Process

Employees' preferences of various benefits can be predicted accurately from demographic data.

Benefits can be an effective tool to attract and retain employees when the benefits address the needs of a target group.

Surveys show that the most highly valued benefit is:

One of the best strategies for determining external equity is to conduct a benefit survey.

As part of the efforts to bring down the employee benefits cost to the company, GrindStop Corp.restricts the number of visits to the dentists covered in the dental plan to two per year.Which of the following cost-containment strategies is used by GrindStop?

Employers prefer the noncontributory approach to financing benefits because this allows greater control of costs.

The Family Medical Leave Act of 1993 mandates 20 weeks of leave for all workers at companies that employ 10 or more people.

Pension costs are of no concern to employers as the government handles the pension costs.

Which of the following benefits is NOT mandated by state or federal legislation?

_____ allows employees who have resigned or have been laid off through no fault of their own to continue receiving health coverage under their employer's plan at a cost borne by the employee.

If the future cost containment of a benefit may be a problem, the benefit should be offered on a noncontributory basis.

A job ad stating generous benefits leads applicants to place higher value on benefits in choosing among jobs.

All employee benefits provided by employers are taxable.

Cost pressure related to increasing diversity of the workforce is one of the reasons companies are offering flexible benefit plans.

A recent survey shows employees ranking employee benefits _____ in explaining job satisfaction.

A survey shows that the majority of employers are responding to increased benefit costs by _____.

All of the following factors are reasons for the growth of benefits EXCEPT:

What can administrators do to control the increasing benefits costs?

Trumbrella Corp.is a pharmaceuticals company.One of its employees reports that he had an on-the-job injury caused by slippery factory floor that broke his back.When Trumbrella initiates its claims processing, it should first:

Flexible benefit plans eliminate the involvement of employees.