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Questions and Answers
What is the primary purpose of educational subsidies in the workplace?
What is the primary purpose of educational subsidies in the workplace?
Which of the following is NOT a benefit of offering educational subsidies?
Which of the following is NOT a benefit of offering educational subsidies?
How do educational subsidies benefit a company apart from employee satisfaction?
How do educational subsidies benefit a company apart from employee satisfaction?
What types of courses could be covered by educational subsidies?
What types of courses could be covered by educational subsidies?
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Which of the following is a potential outcome of implementing educational subsidies?
Which of the following is a potential outcome of implementing educational subsidies?
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Which aspect is critical when designing an educational subsidy program?
Which aspect is critical when designing an educational subsidy program?
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What might be a common misconception regarding educational subsidies?
What might be a common misconception regarding educational subsidies?
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What type of support does offering educational subsidies provide to employees?
What type of support does offering educational subsidies provide to employees?
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What is required by employment standards legislation when an employer terminates an employee without cause?
What is required by employment standards legislation when an employer terminates an employee without cause?
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When does severance pay apply in the context of employment termination?
When does severance pay apply in the context of employment termination?
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What is the primary purpose of group life insurance provided by employers?
What is the primary purpose of group life insurance provided by employers?
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What does a deductible in a supplementary healthcare plan signify?
What does a deductible in a supplementary healthcare plan signify?
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What type of payment do short-term disability plans provide?
What type of payment do short-term disability plans provide?
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What is the main purpose of a sabbatical?
What is the main purpose of a sabbatical?
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Which service is NOT typically included in an employee assistance plan (EAP)?
Which service is NOT typically included in an employee assistance plan (EAP)?
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What additional coverage does accidental death and dismemberment insurance provide?
What additional coverage does accidental death and dismemberment insurance provide?
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What requirement is there for employers regarding mass layoffs in some provinces?
What requirement is there for employers regarding mass layoffs in some provinces?
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What is a significant benefit of flexible benefits programs for employees?
What is a significant benefit of flexible benefits programs for employees?
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What is one of the challenges of benefits administration in firms?
What is one of the challenges of benefits administration in firms?
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What distinction is made between sick leave and short-term disability plans?
What distinction is made between sick leave and short-term disability plans?
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Executive perquisites can include which of the following?
Executive perquisites can include which of the following?
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Which of the following is a potential drawback of flexible benefits programs for employers?
Which of the following is a potential drawback of flexible benefits programs for employers?
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What type of services might credit unions provide as part of employee-specific services?
What type of services might credit unions provide as part of employee-specific services?
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What is a major benefit of employing technology in benefits administration?
What is a major benefit of employing technology in benefits administration?
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What is one primary function of employee benefits?
What is one primary function of employee benefits?
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Which of the following is a government-mandated benefit?
Which of the following is a government-mandated benefit?
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What category includes retirement savings plans provided by employers?
What category includes retirement savings plans provided by employers?
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What is a critical concern for organizations when it comes to employee benefits?
What is a critical concern for organizations when it comes to employee benefits?
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What is an important consideration in developing a flexible benefits program?
What is an important consideration in developing a flexible benefits program?
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How do employee benefits impact the employee-employer relationship?
How do employee benefits impact the employee-employer relationship?
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What challenge is associated with benefits administration in firms?
What challenge is associated with benefits administration in firms?
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What is a long-term priority for a firm's benefits strategy?
What is a long-term priority for a firm's benefits strategy?
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What is the main purpose of employers offering employee benefits beyond legal requirements?
What is the main purpose of employers offering employee benefits beyond legal requirements?
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Which program provides temporary financial assistance to eligible individuals experiencing work interruptions through no fault of their own?
Which program provides temporary financial assistance to eligible individuals experiencing work interruptions through no fault of their own?
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What type of benefits are provided by the Canada/Quebec Pension Plan?
What type of benefits are provided by the Canada/Quebec Pension Plan?
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How are Employment Insurance benefits funded?
How are Employment Insurance benefits funded?
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In which scenario would Employment Insurance benefits NOT be payable?
In which scenario would Employment Insurance benefits NOT be payable?
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What is a key characteristic of Workers' Compensation benefits?
What is a key characteristic of Workers' Compensation benefits?
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What eligibility requirement must individuals meet in order to receive benefits from the Canada/Quebec Pension Plan?
What eligibility requirement must individuals meet in order to receive benefits from the Canada/Quebec Pension Plan?
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What type of benefits does Workers' Compensation provide?
What type of benefits does Workers' Compensation provide?
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What is the primary focus of disability management in the workplace?
What is the primary focus of disability management in the workplace?
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Which of the following best describes a defined benefit pension plan?
Which of the following best describes a defined benefit pension plan?
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In Canada, which condition is cited as a leading cause of short- and long-term disability claims?
In Canada, which condition is cited as a leading cause of short- and long-term disability claims?
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What type of paid leave plan allows employees to use their accrued days as they wish?
What type of paid leave plan allows employees to use their accrued days as they wish?
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What is the intended purpose of employer-sponsored pension plans?
What is the intended purpose of employer-sponsored pension plans?
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What proactive step can employers take to assist employees with disabilities?
What proactive step can employers take to assist employees with disabilities?
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Which statement about defined contribution pension plans is correct?
Which statement about defined contribution pension plans is correct?
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Which mental health condition is noted as the most common among occupational disabilities?
Which mental health condition is noted as the most common among occupational disabilities?
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Which program focuses on preventing accidents and promoting worker safety?
Which program focuses on preventing accidents and promoting worker safety?
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What guarantees a worker's return to an old or similar job after maternity or paternity leave?
What guarantees a worker's return to an old or similar job after maternity or paternity leave?
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Which types of leave are directly related to family emergencies?
Which types of leave are directly related to family emergencies?
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What is required for an employee to receive additional benefits through Supplemental Unemployment Benefits?
What is required for an employee to receive additional benefits through Supplemental Unemployment Benefits?
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Which of the following accurately describes paid breaks in the workplace?
Which of the following accurately describes paid breaks in the workplace?
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Which holiday is typically recognized as a legislated holiday across most jurisdictions?
Which holiday is typically recognized as a legislated holiday across most jurisdictions?
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How does bereavement leave typically vary among jurisdictions?
How does bereavement leave typically vary among jurisdictions?
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What does employment standards legislation specify regarding vacation time?
What does employment standards legislation specify regarding vacation time?
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What characterizes a group registered retirement savings plan (group RRSP)?
What characterizes a group registered retirement savings plan (group RRSP)?
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Which type of pension plan accounts for 56.2% of registered pension plans in 2019?
Which type of pension plan accounts for 56.2% of registered pension plans in 2019?
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Which of the following is NOT typically a design consideration in pension plans?
Which of the following is NOT typically a design consideration in pension plans?
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What distinguishes a deferred profit-sharing plan (DPSP) from other pension plans?
What distinguishes a deferred profit-sharing plan (DPSP) from other pension plans?
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Which of these is true regarding composite or combination plans?
Which of these is true regarding composite or combination plans?
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What is a common characteristic of defined contribution plans?
What is a common characteristic of defined contribution plans?
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Under which condition is a mandatory retirement age allowed within pension plans?
Under which condition is a mandatory retirement age allowed within pension plans?
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What percentage of registered pension plans were classified as 'other types of plans' in 2019?
What percentage of registered pension plans were classified as 'other types of plans' in 2019?
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What is the primary function of vesting in a pension plan?
What is the primary function of vesting in a pension plan?
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Which of the following best describes phased retirement?
Which of the following best describes phased retirement?
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What advantage do subsidized childcare programs provide for employers?
What advantage do subsidized childcare programs provide for employers?
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What is a characteristic of flextime as a flexible work schedule?
What is a characteristic of flextime as a flexible work schedule?
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Which of the following statements about job sharing is correct?
Which of the following statements about job sharing is correct?
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Which option reflects an example of work sharing?
Which option reflects an example of work sharing?
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What is a key benefit of implementing eldercare support initiatives by employers?
What is a key benefit of implementing eldercare support initiatives by employers?
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Supplemental Employee Retirement Plans (SERPs) are designed to address which issue?
Supplemental Employee Retirement Plans (SERPs) are designed to address which issue?
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Study Notes
Human Resources Management in Canada - Chapter 13: Employee Benefits and Services
- This chapter explains the third major pay component: employee benefits.
- Employee benefits are indirect financial payments given to employees. This can include supplementary health and life insurance, vacation, pension plans, education plans, and discounts on company products.
- Employee services such as childcare facilities, counselling services, and flexible work schedules, are increasingly important components of total compensation.
- Benefits programs should align with business strategy to attract and retain the right people.
- Benefits administration is an increasingly specialized task, needing to comply with diverse Canadian laws.
- One of the top priorities for firms is containing benefits costs (59% of organizations). Other priorities include ensuring benefits maintain the company's competitive position (43%), aligning with business strategy (34%), and improving employee health (33%).
Learning Outcomes
- Learning outcome 13.1: Explain the strategic role of employee benefits.
- Learning outcome 13.2: Describe five government-mandated benefits.
- Learning outcome 13.3: Discuss five types of voluntary healthcare-related employee services.
- Learning outcome 13.4: Describe two categories of pension plans and legal considerations in their development.
- Learning outcome 13.5: Discuss five types of employee-specific benefits and identify the impact on the employee-employer relationship.
- Learning outcome 13.6: Explain how to set up a flexible benefits program and cost considerations.
Government-Mandated Benefits
- Employment Insurance (EI): A federal program providing temporary financial assistance for work interruptions outside the employee's control. Funded by employee and employer contributions.
- Canada/Quebec Pension Plan (CPP/QPP): Provides retirement income, survivor/death benefits, and disability benefits to eligible employees and dependants. Only to those who contributed or are surviving family members.
- Workers' Compensation: Provides income and medical benefits to victims of work-related accidents or illnesses, regardless of fault. Benefits are non-taxable. This benefit aims to reduce costs through accident prevention, safety and health programs, rehabilitation, and encouraging worker cooperation.
- Paid Time Off (PTO): Includes maternity/paternity leave (guaranteeing an old/similar job on return to work), Supplemental Unemployment Benefit (SUB), which is an agreement between employer and employees (often due to collective bargaining), vacations (regulated minimum amounts by labour laws), legislated holidays (varying by jurisdiction, but common holidays include New Year's Day, Good Friday, Canada Day, Labour Day, Christmas, and Boxing Day), and paid breaks (mandated paid and unpaid times off set by job rules, including situations where an employee is required to be on-site during a break — coffee or eating breaks are often unpaid).
- Bereavement leave: Provided in some jurisdictions, but the time off varies, depending on the relationship to the deceased. Often unpaid.
- Pay on Termination: Employment/labour standards legislation requires termination pay and/or reasonable notice to employees. Pay-in-lieu is a lump sum equal to an employee's pay for the notice period, if the employee ceases working immediately. Other considerations include notice requirements for mass layoffs, and severance pay.
Voluntary Employer-Sponsored Healthcare Benefits
- Life Insurance: Provided at lower rates, regardless of health, for all employees. Includes accidental death and dismemberment coverage.
- Supplementary Healthcare/Medical Insurance: Covers medical expenses outside of government health plans.
- Deductible: Annual amount employees pay before insurance benefits are applied for health and/or dental expenses.
- Short-Term Disability Plans/Sick Leave: Provides pay when an employee is unable to work due to non-work related illness or injury. Often includes a schedule with a set number of permissible sick days.
- Long-Term Disability Plans: Covers income protection or compensation for long-term illness or injury not related to work. It begins once short-term disability and sick leave have been exhausted.
- Mental Health Benefits: Mental health issues remain a leading cause of short and long-term disability claims in Canada. Workplace support can significantly improve functioning.
Retirement Benefits
- Pension Plans: Provide income when employees reach a predetermined retirement age. Pre-funded employer-sponsored plans supplement government benefits.
- Defined Benefit Plans: Contain a specific formula determining retirement benefits ahead of time.
- Defined Contribution Plans: Do not specify an eventual benefit amount; instead, rely on employee and employer contributions & investment returns to determine payments.
- Types of plans: include group registered retirement savings plans (group RRSPs), deferred profit-sharing plans (DPSPs), etc.
- Design considerations: Membership, benefit formulas, mandatory retirement age, funding (employer and/or employee contributions), vesting (provision by the employer cannot be taken away), and portability (if employee leaves, pension can be transferred).
- Additional designs: Phased retirement (gradual ease into retirement), and supplemental employee retirement plans (SERPs) for cases of exceeding maximum allowable benefits.
Employee-Specific Services
- Family-Friendly Benefits: Subsidized childcare and eldercare support initiatives.
- Flexible Work Schedules: Flextime, telecommuting, and compressed work weeks.
- Job Sharing/Work Sharing: Dividing duties of one position between two or more employees and work less than five days/week receiving EI payments on non-work days.
- Voluntary Job-Related Services: Educational subsidies, paid time off for volunteering, transportation or food subsidies, sabbaticals.
- Personal Services: Credit unions, counselling services, and employee assistance plans (EAPs).
- Executive Perquisites: Benefits for executives (management loans, salary guarantees, financial counselling, relocation benefits, and others).
Emergent Issues in Employee Benefits
- Flexible Benefits Programs: Individual plans are designed to accommodate individual needs; however, cost containment and communication of available options are challenges.
- Benefits Administration: Maintaining benefits status (time-consuming) and keeping employees informed.
- Reducing Health Benefit Costs: Rising costs (aging population and expensive drugs) are forcing firms to increase cost-sharing policies.
- Benefits Fraud: Auditing claim forms, and monitoring all claims is required to reduce the risk of benefits abuse.
- Retiree Health Benefits: Costs are rising for retirees, driving firms to cut costs by tightening eligibility criteria and reducing benefits.
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Description
This quiz focuses on Chapter 13 of Human Resources Management in Canada, covering employee benefits and services. It explores various types of employee benefits, their impact on compensation, and the importance of aligning benefits programs with business strategies. Additionally, it highlights the need for compliance with Canadian laws and managing benefits costs effectively.
