Employee Benefits 1

Questions and Answers

What is the primary purpose of severance pay?

To prevent litigation from former employees (correct)

To supplement wages during vacation

To provide financial support in retirement

To increase performance-related compensation

Which benefit is directly linked to an employee being temporarily unable to work due to illness?

Pension plans

Sick leave (correct)

Workers’ compensation

Severance pay

How does case management help employers in relation to workers' compensation claims?

It increases benefits for accidents

It reduces the cost associated with claims (correct)

It provides legal representation for employees

It standardizes severance pay packages

Which of the following is an example of a supplemental pay benefit?

Paid vacation Signup and view all the answers

What does flextime allow employees to do?

Choose their own work hours around a set schedule Signup and view all the answers

What is a key characteristic of a compressed workweek?

Working fewer days but with longer hours each day Signup and view all the answers

What is meant by 'performance/variable pay'?

Compensation linked to specific work-related achievements Signup and view all the answers

What is 'work sharing' primarily used for?

To maintain employment during economic downturns Signup and view all the answers

Study Notes

Benefits Overview

Benefits are indirect financial and non-financial compensation for employee retention.
Supplemental pay benefits include unemployment insurance, vacation pay, holiday pay, and sick pay for time not worked.

Specific Benefit Types

Sick leave provides compensation during temporary illness-related absences from work.
Severance pay serves as a humanitarian gesture and may diminish potential lawsuits from former employees.

Employer Responsibilities

Employers fund workers’ compensation benefits, which cover income and medical expenses for work-related injuries.
Workers’ compensation ensures protection for employees affected by workplace accidents or their dependents.

Cost Management

Case management strategies help employers reduce expenses associated with workers’ compensation claims.

Pension and Work Flexibility

Pension plans offer income support to individuals after retirement.
Flextime permits employees to customize their work schedule around core midday hours.
Compressed workweek allows employees to work less frequently but for longer hours each day.
Job sharing enables multiple individuals to collectively fulfill one full-time position.
Work sharing involves temporary reductions in employee hours to avert layoffs during economic challenges.

Reward System Components

Direct base pay refers to a fixed salary or wage provided to employees.
Pay progression may depend on factors like age, service length, or performance metrics.
Performance or variable pay connects compensation directly to individual work performance or achievements.

Description

Explore the various benefits and services offered to employees, including financial and non-financial payments. This quiz covers topics such as supplemental pay, sick leave, and severance pay, providing a comprehensive understanding of employee compensation. Test your knowledge on how these benefits support workforce retention and employee well-being.