{Employees

Describe the effect of employee benefits on labor costs

List and describe employee benefits commonly provided by employers

Identify the personal importance of employee benefits upon entering the labor market

Lesson Objectives

Key Vocabulary

Accidental Death and dismemberment policy

Defined-Benefit plan Defined-

Contribution Plan Disability Insurance Fee-for-service Flextime Health Insurance

Health Maintenance Organization

Holiday Pay Jury Duty Pay Life Insurance Military Duty Pay Preferred Provider

Organization Pretax Benefits

Quality of life benefit Retirement Plan Sick leave pay Stock Option Telecommuniting Work-related Education assistance

Key Vocabulary

Why do people work? Pretty simple

Other than for money, why do people work?

What about health insurance, life insurance, and retirement?

Willingness to take care of an employee says something about an employer and about company values

After all, everyone wants to work in an organization where employees are valued

Employee Benefits

Download- Worksheet: Labor Statistics Research

Complete this using the website available on the worksheet

Begin your research by finding the average annual wages of each of the jobs listed on the resource

Labor Statistics

Why do some jobs pay more than others? How might pay levels vary from one part

of the country to another? Firms spend huge amounts of money on

wages. How can businesses keep these costs down? What trade-offs are involved?

Considering Employee Pay Levels

Most companies—especially firms that are part of service industries (such as banks, hotels, etc.)—more of their operating costs are tied up in employee-related costs than in any other area

The primary cost is wages—the hourly or annual pay that workers earn

However, this isn’t the only cost that employers must factor into their operating budgets

Benefits typically account for about 30% of total labor costs in most industries

Considering Employee Pay Levels

Everyone in this room probably has at least some experience with what it means to have a job

While there are intrinsic rewards to many jobs, most people work to make money

Employees receive wages for their work as well as a package of benefits.

Employee Benefits

Download- Reading: Employee Benefits

Employee Benefits

Apart from employer-paid taxes, there are few benefits that a company must provide to an employee

Mandatory health insurance coverage or short-term disability may also be required in a few states.

• Why do most employers provide more benefits for an employee than required by law?

Considering Employers’ Motivation

Company A currently pays its employees a good wage but offers no benefits

Its senior managers are considering adding health insurance to employee compensation, which will increase by 20% the amount each worker costs the company.

Agree or Disagree?

Considering Employers’ Motivation

Where will the money to pay for the additional benefits come from?

Benefits are a cost to employers and the money must come from somewhere

Increased benefits might mean a lower profit margin for the company a higher price for the goods they sell smaller raises for current employees lower wages for new employees—which in

turn means the company might have to hire less-qualified workers

Considering Employers’ Motivation

Download- Worksheet: Employee Benefits Grid

Complete the worksheet by filling in the particular benefit category (retirement plans, health care plans, life insurance, disability, etc.) with a short description of what it refers to on the resource

Employee Benefits Grid

Discuss which benefit category would be most important for:

A single mother raising a family A person who is diabetic A working family with three high-school-

aged children A 20-something bachelor with a high-

paying job

Employee Benefits Grid

Identify three family members or personal contacts that they would like to interview

Next, ask each of the three individuals about their own employee benefits program

Use Worksheet: Employee Benefits Grid, to record your answers

Record the information from the three different individuals with tally marks next to the appropriate yes (Y) or no (N) column.

Surveying Personal Contacts

What types of positions did the people whom they interviewed hold?

Did they receive benefits? If so, were they happy with their benefit

package?

Surveying Personal Contacts

Download- Table: Benefit Packages Use this information to write a summary

on which business you would choose to work for based on the information

Download- Assignment: The Right Company for Me

How does this example meet the requirements for this assignment?

If you had created this draft, what would you improve?

Exploring Employee Benefits

What type of person would be interested in Company 1?

What type of person would be interested in Company 2?

Understanding the various options and benefits before accepting any position is important

From retirement plans to education assistance, employee benefits packages can be costly for the employer and can account for 30% (and in some cases, more) of an individual’s salary

What’s Important to Me?

Ask students to choose a profession within the financial services industry that interests them. Next, instruct students to research a particular company that offers positions in that field and investigate the types of benefit packages and incentives that are offered to their employees. Finally, have students present the information to the class.

Enrichment

Social Studies: Research the German philosopher and political economist, Karl Marx.

Specifically investigate Karl Marx’s views of employment and the exploitation of the worker.

Draft a short oral presentation in which they discuss their findings with the class.

Cross-Curricular Integration