The WorldatWork Handbook of Compensation, Benefits & Total Rewards: A Comprehensive Guide for HR Professionals

The WorldatWork Handbook of Compensation, Benefits & Total Rewards: A Comprehensive Guide for HR Professionals

by WorldatWork
Released May 2007
Publisher(s): Wiley
ISBN: 9780470085806

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Book description

Praise for The WorldatWork Handbook of Compensation, Benefits & Total Rewards

This is the definitive guide to compensation and benefits for modern HR professionals who must attract, motivate, and retain quality employees. Technical enough for specialists but broad in scope for generalists, this well-rounded resource belongs on the desk of every recruiter and HR executive. An indispensable tool for understanding and implementing the total rewards concept, the WorldatWork Handbook of Compensation, Benefits, and Total Rewards is the key to designing compensation practices that ensure organizational success.

Coverage includes:

  • Why the total rewards strategy works

  • Developing the components of a total rewards program

  • Common ways a total rewards program can go wrong

  • Designing and implementing a total rewards program

  • Communicating the total rewards vision

  • Developing a compensation philosophy and package

  • FLSA and other laws that affect compensation

  • Determining and setting competitive salary levels

  • And much more

Table of contents

  1. Copyright
  2. Introduction: Redefining Employee Rewards
    1. The Evolution of Rewards
  3. About the Author
  4. 1. Total Rewards: Everything That Employees Value in the Employment Relationship
    1. Broadening the Definition of Total Rewards
    2. Evolution of the WorldatWork Total Rewards Model
    3. Exploring the Key Areas
      1. Compensation
      2. Benefits
      3. Work-Life
      4. Performance and Recognition
      5. Development and Career Opportunities
  5. 2. Why the Total Rewards Approach Works
    1. The Top Five Advantages of a Total Rewards Approach
      1. 1. Increased Flexibility
      2. 2. Improved Recruitment and Retention
      3. 3. Reduced Labor Costs/Cost of Turnover
      4. 4. Heightened Visibility in a Tight Labor Market
      5. 5. Enhanced Profitability
    2. Reference
  6. 3. Developing a Total Rewards Strategy
    1. The Total Rewards Blueprint
    2. Five Common Ways a Total Rewards Strategy Can Go Astray
    3. Crystallizing the Spirit of Your Total Rewards Plan
    4. Issues That a Total Rewards Strategy Should Address
      1. 1. Clear, Compelling Strategies Help People Make Good Decisions Faster
      2. 2. Clear, Compelling Strategies Help Identify Potential Friction Points
      3. 3. Clear, Compelling Strategies Help Provide Supporting Architecture
    5. The Bottom Line
  7. 4. Designing a Total Rewards Program
    1. Step 1: Analyze and Assess
      1. Why Conduct an Assessment?
      2. How to Conduct an Assessment
      3. What to Consider in an Assessment
    2. Step 2: Design
      1. Define the Corporate Mission and Vision
      2. Define the Business Strategy
      3. Define the HR Philosophy and Strategy
      4. Define the Total Rewards Philosophy Statement
      5. Define Your Total Rewards Strategy
    3. Step 3: Develop
      1. Program Purpose/Objectives
      2. Eligibility
      3. Baseline for Measurement
      4. Funding
      5. The Concept of Present Value
      6. Selection of Rewards Elements and Structure
      7. Creating the Rewards Mix
      8. Global Considerations
      9. Course of Action/Timeline
    4. Step 4: Implement
      1. Obtain Senior Management Approval
      2. Form an Implementation Team
    5. Step 5: Communicate
      1. Building a Trusting Relationship
      2. Know the Facts
      3. Crystal Clear Communication
      4. Honesty: The Best Policy
      5. Audience
      6. Management
      7. Front-Line Supervisors
      8. Employees
      9. External Audiences
      10. Key Messages
      11. Media
      12. Budget
      13. Timeline
      14. Feedback
      15. How to Communicate Bad News
    6. Step 6: Evaluate and Revise
      1. The Review Process
      2. Measurements
      3. Quantitative Measurements
      4. Qualitative Measurements
      5. Evaluative Outcomes
  8. 5. Communicating Total Rewards
    1. A Communications Approach with Oomph
    2. The Power of Communication
    3. Top Management Buy-In
    4. The Bottom Line
    5. Communication Fundamentals
    6. Models of Communication
    7. The Communication Process
      1. Step 1: Analyze the Situation
      2. Step 2: Define the Objectives
      3. Step 3: Conduct Audience Research
      4. Step 4: Determine Key Messages
      5. Step 5: Select Communication Channels
      6. Step 6: Develop the Communication Campaign
      7. Step 7: Implement the Campaign
      8. Step 8: Evaluate the Campaign
    8. Communicating the Program’s Richness
      1. Compensation
      2. Benefits
      3. Work-Life
      4. Performance and Recognition
      5. Development and Career Opportunities
    9. Special Situations
      1. Communicating with Various Levels of Employees
      2. Mergers and Acquisitions
      3. Communicating in a Union Environment
      4. Off-Shift, Off-Site, and Remote Location Employees
      5. Global Communications
    10. Media Considerations
      1. Branding
      2. Employer Branding
    11. A Case Study: Southern Company
    12. Total Rewards Branding
    13. Media Choices
      1. Written Communication
      2. Technology-Based Communication
      3. Content
      4. Resources and Priorities
      5. User Feedback
      6. Adding Information
      7. “Three Clicks” Rule
      8. Graphics
      9. Verbal Communication
      10. Audiovisual Communication
    14. Implementation
    15. Planning a Campaign
      1. Project Management
      2. Project Planning
    16. Managing a Campaign
      1. Preintroduce the Communication Campaign
      2. Communication during Program Rollout
      3. Gathering and Responding to Employee Feedback
      4. Evaluation
      5. Working with an Internal Communication Department
      6. Working with External Specialists
    17. Measuring Return on Investment
      1. Define Measurements
      2. Track Statistics
      3. Investigate Cost Savings
    18. Critical Outcomes
  9. 6. Compensation Fundamentals
    1. The Foundation: A Compensation Philosophy
    2. Characteristics of Compensation Programs
    3. Elements of Compensation
    4. The Basics: Base Pay
    5. Job Analysis
    6. Job Evaluation
      1. Market-Driven Systems
      2. Job-Worth Systems
      3. Differences between Market-Driven and Job-Worth Systems
      4. The Future Is Now
    7. Market Analysis
    8. Salary Ranges
    9. Competencies
    10. Incentive Pay
    11. Design Elements
    12. Reasons for Failure
    13. Management of Pay for Performance
      1. Designing a Merit Increase Matrix
      2. Overseeing Salary Management
    14. Effective Compensation Management
  10. 7. Regulatory Environment: The FLSA and Other Laws That Affect Compensation Practices
    1. Fair Labor Standards Act of 1938
      1. What Is the FLSA?
      2. Who Does the FLSA Affect?
      3. What Is Covered?
        1. Minimum Wage
        2. Hours Worked
        3. Workweek
        4. Rates of Pay and Overtime Calculations
        5. Child Labor Restrictions
        6. Recordkeeping Requirements
      4. What Is Not Covered?
      5. Classifications
        1. Exempt and Nonexempt Categories
      6. Determination Tests for Classifying Exempt Employees
        1. Salary Limit Test
        2. Salary Basis
        3. Duties Tests
      7. Rates of Pay
        1. Regular Rates of Pay
        2. Types of Pay
        3. Hourly Rate
        4. Piece-Rate
        5. Day Rates and Job Rates
        6. Salary Basis
        7. Fixed Salary for Fluctuating Hours
        8. Employees Working Two or More Rates
        9. Commission Payments
        10. Commissions Paid on a Workweek Basis
        11. Deferred Commission Payments
      8. Overtime
        1. Overtime and Regular Rates of Pay
        2. Time of Overtime Payment
        3. Overtime Calculation
        4. Hourly Rate Employee Overtime Calculation
        5. Nonexempt Salaried Employees Overtime Calculation
        6. Day Rates and Job Rates
        7. Two or More Rates
        8. Piecework Calculations
      9. Commissions in Overtime Calculations
        1. Commissions Paid on a Regular Weekly Basis
        2. Deferred Commission Payments
      10. Overtime Pay and Special Cases
      11. Common Problems in Computing Overtime
        1. Overlapping Workweeks
        2. Retroactive Pay Increases
        3. Overtime Averaging by Pay Period
      12. Exclusions from Overtime Payment
      13. The FLSA/FMLA Interplay
        1. Basic FMLA Provisions
      14. The FLSA and FMLA Regulatory Background
      15. Special Calculations
      16. Court Rulings
        1. Present Approaches in Court Interpretations
      17. Safe Harbor
      18. FLSA Violations and Penalties
      19. Violation-Related Definitions
        1. Willful Violation
        2. Repeated Violations
        3. Good Faith Defense
        4. Statute of Limitations
      20. Effect of Improper Deductions from Salary
      21. What Prompts an Audit?
        1. Employee Complaint
        2. Random Audit
        3. Industry/Geographic Target
      22. Common FLSA Violations
        1. Compensatory Time Off
        2. Failure to Pay for Unauthorized Hours Worked
        3. Bonus Pay Exclusion from Regular Hourly Rate
        4. Failure to Pay for All Recorded Hours
        5. Inaccurate Records
        6. Employee Misclassification
        7. Improper Payment for Break Time
        8. On-Call Time
        9. Training Time
        10. Travel Time
    2. Sherman Antitrust Act of 1890
      1. Enforcing Antitrust
    3. Davis-Bacon Act of 1931
    4. National Labor Relations Act
    5. Walsh-Healey Act
    6. Service Contract Act
    7. Anti-Discrimination Laws
      1. Equal Pay Act of 1963
      2. Title VII of the Civil Rights Act of 1964
      3. Age Discrimination in Employment Act of 1967
      4. Executive Order 11246
      5. Vocational Rehabilitation Act of 1973
      6. Vietnam Era Veterans Readjustment Act of 1974
      7. Americans with Disabilities Act of 1990
  11. 8. Market Pricing
    1. Where Do You Begin?
    2. Job Analysis
    3. Job Documentation and Job Descriptions
    4. Job Evaluation
    5. Benchmark Jobs
    6. Collecting the Right Data
    7. Decision Factors in Collecting Market Data
    8. Know the Market: Half the Battle
    9. Gathering Valid Data
    10. Data Sources
      1. Purchase Published Surveys
      2. Conduct Your Own Survey through a Third Party
      3. Use Free Sources
    11. Capturing Competitive Market Data for High-Demand Jobs
    12. Crunching Numbers
    13. Options for Measuring Central Tendency
    14. Percentiles
    15. Aging Data to a Common Point in Time
    16. Weighting Market Data Across Survey Sources
    17. Developing Market Index of Competitiveness
    18. Market Blips—a Word of Caution
    19. Approaches to Program Costs
      1. All-at-Once Approach
      2. Phase-in Approach
      3. Wait-and-See Approach
    20. How to Keep Employees in the Loop
      1. Who Should Communicate the Message?
      2. What Information Should be Communicated?
    21. Opening the Pay Dialogue
  12. 9. Salary Surveys: A Snapshot
    1. The Big Picture
    2. Definition and Purposes
    3. Benchmark Surveys
      1. Which Jobs to Survey
      2. Survey Job Descriptions
      3. Which Companies to Survey
      4. Data to Be Gathered
      5. More Than Just Salaries
      6. Review the Survey Database
      7. When to Conduct an Ad Hoc or Special Survey
    4. Job Matching
      1. For All Jobs
      2. For Jobs in a Family
    5. Job Title and Characteristics
    6. Survey Frequency
    7. Stretching the Salary Survey Budget
    8. Behind the Scenes
      1. Preparation
      2. Gather Data
      3. Creating the Master File
      4. Initial Reports
      5. Final Results
    9. The Compensation Practitioner’s Role
      1. Extracting Data
      2. Synchronizing Surveys with Economic Data
      3. Communications
    10. Salary Survey Guidelines
      1. Best Practices in Survey Selection
      2. Characteristics of Good Salary Surveys
  13. 10. Job Analysis, Documentation, and Evaluation
    1. Job Documentation
    2. What Is a Job?
    3. Job Analysis: A Step-by-Step Process
      1. Step 1: Obtain Management Approval
      2. Step 2: Gain Employee Acceptance
        1. Gaining Union Support
      3. Step 3: Decide Who Will Conduct the Analysis
      4. Step 4: Think in Terms of Work Flow
      5. Step 5: Consult Secondary Sources First
        1. Internal Sources
        2. External Sources
      6. Step 6: Decide Method and Collect Data
        1. Observation Method
        2. How to Observe
        3. Observation and Interviews
        4. Observations: Advantages and Disadvantages
        5. One-on-One Interviewing
        6. Starting an Interview
        7. Writing a Job Description
        8. How to Ask Questions
        9. Closing the Interview
        10. Group Interviews
        11. Interviewing Customers
        12. Interviewing: Advantages and Disadvantages
        13. Questionnaires
        14. Open-Ended Questionnaires
        15. Closed-Ended Questionnaires
        16. Questionnaires: Advantages and Disadvantages
      7. Step 7: Document the Analysis
      8. Step 8: Obtain Necessary Approvals
      9. Step 9: Test for Legal Compliance
      10. Step 10: Conduct a Reality Test
      11. Step 11: Formulate Specific Recommendations
      12. Step 12: Keep Up-to-Date
    4. Job and Work Analysis: Weighing Costs and Benefits
    5. Job Evaluation
    6. Internal Job Evaluation—Nonquantitative Methods
    7. Internal Job Evaluation—Quantitative Methods
    8. Internal Job Evaluation—Point Factor
  14. 11. Base Pay Structures
    1. Pay Structures
    2. General and Specific Factors Affecting Pay Structures
    3. Anatomy of a Pay Structure
    4. Pay Ranges and Range Spreads
      1. Some Practical Considerations
    5. Midpoints
    6. Range Penetration
    7. Midpoint Progression
      1. Three Approaches to Developing Midpoints
    8. Pay Grades
      1. Segmentation of Pay Grades
      2. Pay-Grade Overlap
      3. Multiple Pay Structures
    9. Developing a Pay Structure
      1. Internal Equity
      2. External Competitiveness
      3. Defining Competition
    10. Key Steps in Designing an Effective Pay Structure
      1. Step 1: Review Overall Point Differentials
      2. Step 2: Rank Order Jobs by Total Evaluation Points
      3. Step 3: Develop Job Groupings
      4. Step 4: Develop Preliminary Point Bands
      5. Step 5: Check Intrafamily and Supervisory Relationships
      6. Step 6: Incorporate Market Data
      7. Step 7: Review Market Inconsistencies
      8. Step 8: Smooth Out Grade Averages
      9. Step 9: Review Differences between Midpoints and Market Averages
      10. Step 10: Resolve Inconsistencies between Internal and External Equity
    11. Pitfalls and Precautions
    12. Broadbanding
    13. Starting Rates of Pay
    14. Increases to Base Rates of Pay
    15. Merit Pay Considerations
    16. Performance Appraisal Considerations
    17. Maintaining and Auditing the Pay Program
    18. Keys to Successful Pay Program Maintenance
    19. Ongoing Administrative Activities
    20. Pay Program Audits
      1. Five Steps to Prepare for and Conduct Pay Program Audits
        1. Step 1: Decide What to Audit
        2. Step 2: Select the Participants
        3. Step 3: Develop a Data Collection and Analysis Plan
        4. Step 4: Assemble the Necessary Data to Support the Analysis
        5. Step 5: Analyze the Collected Data and Develop Findings and Recommendations
  15. 12. Sales Compensation Fundamentals
    1. Working with the Sales Organization
    2. Six Areas of Sales Compensation Plan Involvement
      1. 1. Problem Resolution
      2. 2. Design and Implementation Process
      3. 3. Sales Compensation Guiding Principles
      4. 4. Competitive Pay Assessments
      5. 5. Industry Trends and Practices
      6. 6. Plan Effectiveness Assessment
    3. Learning a New Language
    4. Compensation Tied to Total Rewards
      1. Direct and Indirect Financials (Total Pay)
      2. Affiliation
      3. Career
      4. Work Content
    5. Variable Pay Plan Categories
    6. Sales Compensation Philosophy
    7. Guiding Principles
    8. Eligibility for Sales Compensation
      1. Target Earnings
      2. Salary/Incentive Ratio and Target Upside
      3. Salary/Incentive Ratio (Mix)
      4. Target Upside (Leverage)
      5. Plan Measures and Performance Standards
        1. Performance Measures
        2. Number of Measures
        3. Performance Standards
        4. Sales Crediting
    9. Timing Considerations
    10. Alternative Mechanics
      1. Plan Types
      2. Modifiers
    11. Understanding How Sales Compensation Fits
  16. 13. Executive Compensation: An Introduction
    1. Owner-Manager Conflict: Agency Theory
    2. Other Theories That Explain and Influence Executive Compensation
    3. External Influences on the Executive Compensation Package
    4. Sources of Data on Executive Compensation
    5. Components of Executive Compensation
      1. Salary
      2. Bonus
      3. Stock Options
      4. Stock Grants
      5. Other Stock-Based Forms of Compensation
      6. Pensions
      7. Benefits and Perquisites
      8. Severance Payments
      9. Change-in-Control Clauses
    6. Making the Offer Attractive
    7. Providing the Proper Incentives
    8. Designing the Contract to Retain the Executive
    9. Restrictions
    10. Minimizing Costs to the Corporation
    11. References
  17. 14. Linking Pay to Performance
    1. Determining What to Reward
    2. Documenting Performance Standards
    3. Establishing a Merit Budget
    4. Determining Budget Size
    5. Determining Budget Allocation
    6. Setting Merit Pay Policy
    7. Policy Decisions
      1. Size: Absolute vs. Relative
      2. Timing: Anniversary vs. Common Review
      3. Delivery: Base vs. Lump Sum
    8. Policy Implementation
      1. Performance
      2. Performance and Position in Range
      3. Performance and Position in Range Using Variable Timing
    9. Managing a Merit Pay Plan
    10. Training
    11. Perception of Fairness
    12. How Computer Technology Can Assist Administration
    13. Evaluating a Merit Pay Plan
    14. Merit Pay Advantages and Disadvantages
    15. Linking Results and Competencies to Business Strategy
    16. Determining the Performance Management Cycle
      1. Phase I: Planning Performance for the Upcoming Period
      2. Phase II: Coaching Performance and Giving Feedback throughout the Period
      3. Phase III: Rating Performance for the Just-Completed Period
    17. Performance Rating Approaches
      1. Using Summary Ratings
      2. Employee Responsibility
    18. Multirater Assessment
    19. Linking Performance Management and Pay Delivery
  18. 15. Cash Bonus Plans and Recognition Programs
    1. What Is a Sign-on Bonus?
    2. Size of Sign-on Bonus
    3. Claw Back Clause
    4. Aligning the Sign-on Bonus with Total Rewards
    5. Executive Sign-on Bonus
      1. Golden Hellos
    6. Potential Pitfalls
      1. Causes Resentment among Existing Employees
      2. Relocation Expenses
      3. Lack of ROI Data
      4. Taking a Risk
    7. Communicating the Sign-on Bonus
    8. What Is a Referral Bonus?
    9. Eligibility
    10. Timing of Cash Award Distribution
    11. Promoting an Employee Referral Program
    12. What Is a Spot Bonus?
    13. Size of Spot Bonus
    14. Spot Recognition Program Guidelines
    15. How to Effectively Use Spot Recognition
    16. Potential Pitfalls
    17. Conducting the Recognition Event
    18. Documenting Recognition
    19. Communicating the Spot Program
      1. Who Does the Recognizing?
    20. Legal and Tax Requirements
      1. Determining Tax Liability
      2. Legal Compliance
    21. What Is a Retention Bonus?
    22. Building a Business Case
      1. Instrumental in Meeting Organizational Goals
      2. Combating Turnover
    23. Retention Bonus Q & A
      1. Examples
      2. ERISA Implications
    24. Potential Pitfalls
    25. Communicating the Retention Plan
    26. Cash Bonuses in the Total Rewards Mix
  19. 16. Equity-Based Rewards
    1. Business Structures
    2. Compensation Plans Using Equity
    3. Benefits Plans Using Equity
    4. Equity Terminology
    5. Evolution of Equity-Based Rewards
    6. Evolution of Stock Options
    7. Evolution of Benefits Plans Using Equity
      1. ESPPs
      2. ESOPs
    8. Why Equity Is Used to Reward Employees
    9. Legal, Tax, and Accounting Issues
    10. Impact of Legislation on Equity-Based Rewards Programs
      1. Internal Revenue Code
    11. Forms of Taxation: Employee
    12. Forms of Taxation: Employer
    13. Accounting Basics: Financial Statements
      1. Income Statement
    14. Accounting for Equity-Based Rewards
      1. APB 25
      2. FAS 123(R)
      3. Equity Accounting Continuum
      4. Impact of Mandatory Expensing
      5. Shareholder Issues
    15. Overview of Stock Options
      1. Key Dates
      2. Stock Option Characteristics
      3. Advantages of Stock Options
        1. Employee
        2. Employer
      4. Disadvantages of Stock Options
        1. Employee
        2. Employer
    16. Types of Stock Options
      1. Incentive Stock Option (ISO)
        1. ISO Requirements
        2. ISO Tax Implications for the Employee
        3. ISO Tax Implications for the Employer
      2. Nonqualified Stock Option (NQSO)
        1. NQSO Tax Implications for the Employee
        2. NQSO Tax Implications for the Employer
        3. NQSO Limitations
    17. Types of Stock Awards and Alternatives
      1. Performance Share Plan (PSP)
        1. PSP Tax Implications for the Employer
        2. PSP Tax Implications for the Employee
        3. PSP Accounting Considerations
        4. PSP Pros and Cons
      2. Restricted Stock Award (RSA)
        1. RSA Tax Implications for the Employer
        2. RSA Tax Implications for the Employee
        3. 83(b) Election
        4. RSA Accounting Considerations
        5. 162(m) Considerations
        6. RSA Pros and Cons
      3. Restricted Stock Unit (RSU)
      4. Performance Accelerated Restricted Stock Award Plan (PARSAP)
      5. Stock Appreciation Right (SAR)
        1. SAR Tax Implications for the Employer
        2. SAR Tax Implications for the Employee
        3. SAR Accounting Considerations
        4. SAR Pros and Cons
      6. Phantom Stock
        1. Phantom Stock Tax Implications for the Employer
        2. Phantom Stock Tax Implications for the Employee
        3. Phantom Stock Accounting Considerations
        4. Phantom Stock Pros and Cons
      7. Performance Unit Plan (PUP)
        1. PUP Tax Implications for the Employer
        2. PUP Tax Implication for the Employee
        3. PUP Accounting Considerations
        4. PUP Pros and Cons
        5. Typical Performance Metrics of PUPs
    18. The Use of Equity in Benefits Plans
    19. Employee Stock Purchase Plan (ESPP)
      1. Statutory Requirements
      2. ESPP Pro and Con
      3. ESPP Tax Implications for the Employee
      4. ESPP Tax Implication for the Employer
    20. Defined Contribution Plans
      1. Employee Stock Ownership Plan (ESOP)
        1. ESOP Requirements
      2. ESOP vs. Stock Options
        1. ESOP Tax Implications for the Employer
      3. Money Purchase Pension Plans
      4. 401(k) Plans
        1. Key Features of the Basic 401(k) Plan
        2. 401(k) Tax Implications
      5. 403(b) Plans
  20. 17. Employee Benefits Basics
    1. Historical Perspective of Benefits
    2. Elements of Benefits
      1. Income Protection Programs
      2. Pay for Time Not Worked Programs
    3. Benefits Plan Objectives
      1. Employer Objectives
      2. Employee Objectives
    4. Government Regulation of Benefits Plans
      1. Equal Employment Opportunity Commission (EEOC)
      2. Department of Labor (DOL)
      3. Securities and Exchange Commission (SEC)
      4. Pension Benefit Guaranty Corporation (PBGC)
    5. Statutory Benefits
      1. Social Security
        1. Old Age (OA): Retirement Benefits
        2. Floor of Protection
        3. Social Security Health Insurance (HI)
        4. Social Security FICA Tax
      2. Workers’ Compensation
      3. Unemployment
      4. Nonoccupational Disability
    6. Health and Welfare Plans
      1. Health and Welfare: A Brief History
      2. Health and Welfare Plan Elements
    7. Health Care
      1. Health Maintenance Organization (HMO)
      2. Preferred Provider Organization (PPO)
      3. Point of Service (POS)
      4. Point of Service (POS) Key Characteristics
      5. Indemnity Plans
      6. Prescription Drug
      7. Behavioral Health
      8. Dental Plans
      9. Vision
      10. Long-Term Care
    8. Disability Income
      1. Sick Leave
      2. Short-Term Disability (STD)
      3. Long-Term Disability (LTD)
    9. Survivor Benefits
      1. Term Life Insurance
      2. Accidental Death and Dismemberment (AD&D)
      3. Supplemental Life Insurance
      4. Dependent Life Insurance
    10. Flexible Benefits
    11. Retirement Plans
      1. Defined Benefit (DB) Plans
      2. Defined Contribution (DC) Plans
    12. Pay for Time not Worked Benefits
      1. Vacation
      2. Sick Leave
      3. Legal Holidays
      4. Bereavement Leave
      5. Military Leaves
      6. Jury Duty
      7. Personal Holidays
      8. PTO (Paid Time Off) Banks
    13. Other Benefits
    14. The Importance of Effective Communication
      1. Legal Requirements
      2. Cobraize Employees
      3. Creating and Building Awareness of Benefits
      4. Enhancing Confidence and Trust
      5. Involve Employees in Benefit Changes
    15. Projected Benefits Trends
  21. 18. Benefits Compliance: An Overview for the HR Professional[1]
    1. The Employee Retirement Income Security Act of 1974 (ERISA)
      1. The Nature of the Pension Promise: Defined Benefit vs. Defined Contribution
      2. The Scope of ERISA
      3. Regulatory Exemptions
      4. Reporting and Disclosure
      5. The “Written Plan” and Claims Procedure Requirements
      6. The Summary Plan Description
      7. Plan Assets and the ERISA Trust Requirement
      8. Minimum Participation Standards
      9. Minimum Vesting Standards
      10. Benefits Accrual Requirements
      11. Form of Payment of Benefits Requirements
      12. Minimum Funding Standards
      13. Fiduciary Duties
      14. COBRA Group Health Plan Continuation Coverage Requirements
      15. Pension Plan Termination Insurance
      16. Multiple Employer Welfare Arrangements
    2. The Internal Revenue Code
      1. Tax Advantages of Qualified Retirement Plans
      2. Pension, Profit-Sharing, and Stock Bonus Plans
      3. Impact of EGTRRA on Money Purchase Pension Plans
      4. The Income Taxation of Fringe Benefit Plans
        1. Group-Term Life Insurance (Code §79)
        2. Accident and Health Plans (Code §§104, 105, and 106)
        3. Cafeteria Plans (Code §125)
        4. Educational Assistance Programs (Code §127)
        5. Dependent Care Assistance (Code §129)
        6. Adoption Assistance Programs (Code §137)
    3. The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)
      1. Increases in Annual Employee Deferral Limits
      2. Increases in the Overall Code §415 Contribution Limitation
      3. Deferred Compensation Plans Under Code §457
      4. Rollovers
      5. The Roth 401(k) Plan Option
      6. Deduction Limits
      7. Notice Requirement for Pension Plan Benefit Accruals Reduction
      8. Top-Heavy Rules
      9. Multiple-Use Test Repealed
      10. Same Desk Rule Eliminated
      11. Safe Harbor Hardship Withdrawal Rules Modified
  22. 19. Worker Privacy, Unpaid Leave, and Other Benefit-Related Laws That Protect the Individual
    1. The Health Insurance Portability and Accountability Act of 1996 (HIPAA)
      1. Title I: Group Health Plan Portability
        1. Pre-existing Condition Limitations
        2. Pre-existing Conditions
        3. Certificates of Creditable Coverage
        4. Nondiscrimination
        5. Special Enrollment Rights
        6. Guaranteed Access Individual Market Coverage
      2. Title II, Subpart F: Administrative Simplification
        1. National Standards for Electronic Transmission of Health Care Data
        2. Unique Health Identifiers
        3. Privacy of Individually Identifiable Health Information
        4. Security
    2. The Newborns’ and Mothers’ Health Protection Act
    3. The Mental Health Parity Act of 1996
    4. The Women’s Health and Cancer Rights Act of 1998
    5. Family and Medical Leave Act of 1993 (FMLA)
      1. Employer Coverage, Employee Eligibility, and Leave Entitlement
      2. Intermittent Leave
      3. Substitution of Paid Leave
      4. Health Care Providers
      5. Maintenance of Health Benefits
      6. Job Restoration
      7. Employee Notice and Certification
      8. Employer Notice and Certification
    6. Nondiscrimination Laws
      1. Title VII of the Civil Rights Act of 1964
        1. Retirement Plans: Contributions and Benefits
        2. Retirement Plans: Eligibility
        3. Death Benefits
        4. Health and Disability Insurance
      2. Age Discrimination in Employment Act of 1967 (ADEA)
        1. Section 4(f)(2)(B)
        2. Section 4(i)
        3. Section 4(l)
      3. Americans with Disabilities Act of 1990 (ADA)
        1. Health Insurance
        2. Disability Retirement Plans and Service Retirement Plans
    7. Uniformed Services Employment and Re-Employment Rights Act of 1994 (USERRA)
      1. Profit-Sharing Contributions Required
      2. 401(k) Contributions
      3. Re-employment Rights
      4. Benefits Entitlement
      5. Military COBRA Rights Required
    8. Worker Adjustment and Retraining Notification Act of 1988 (WARNA)
      1. Plant Closing
      2. Mass Layoff
      3. Impact on Employee Benefits
    9. In Closing
  23. 20. Planning Benefits Strategically
    1. Internal and External Influences on Strategy
    2. The Strategic Planning Process
    3. Approaches to Strategic Benefits Planning
      1. Top-Down Approach
      2. Backing-in Approach
    4. Who’s Managing the Strategic Benefits Planning Process?
    5. Design and Implementation
      1. Step 1: Developing a General Philosophy
      2. Step 2: Understanding the Environment
      3. Step 3: Creating the Design Blueprint
      4. Justifying Costs
      5. Step 4: Testing and Finalizing the Design
      6. Financial Management
      7. Administration and Systems Support
      8. Step 5: Implementing the Rollout
    6. Outcomes of Strategic Benefits Planning
    7. Evaluation
      1. The Role of Evaluation
    8. Beyond the Strategic Plan
    9. References
  24. 21. Implementing Flexible Benefits
    1. Types of Flexible Benefits Plans
      1. Pretax Premium Plans
      2. Flexible Spending Accounts
      3. Simple Choice Plans
      4. Full Flexible Benefits Plans
    2. Flexible Benefits Plan Design
      1. Eligibility
        1. Interim Core Plan
        2. Deduction Effective Dates
      2. Enrollment Choices
        1. Annual Re-enrollment
        2. Default Elections
      3. Family and Employment Status Changes
      4. Special Classes of Employees
        1. Part-Time Employees
        2. Leave of Absence
    3. Pricing Flexible Benefits Options
      1. Market-Based Pricing and Credits
      2. Incentive-Based Pricing and Credits
      3. Net Cost Pricing without Credits
    4. Tax Issues and Employer Objectives
      1. Pretax Benefits
      2. Pretax or After-Tax Benefits
      3. After-Tax Benefits
      4. “Freezing” Pay for Pricing Purposes
      5. Adjusting Prices from Insured Rates
    5. Communication Approaches
      1. Communication Timing
    6. Annual Enrollment Process
      1. Phase I: Data Setup
      2. Phase II: Individualized Worksheets
      3. Phase III: Distribution of Information
      4. Phase IV: Confirmation
      5. Phase V: Integration of Information
      6. Phase VI: Review
    7. Ongoing Enrollment
    8. Annual Re-Enrollment
    9. Spending Account Administration
    10. Legal Issues
      1. Summary Plan Description
      2. Form 5500
      3. Nondiscrimination Rules
  25. 22. Work-Life Effectiveness
    1. Changing Demographics
    2. The Evolution of Work-Life Initiatives
    3. Work-Life Effectiveness: A Definition
    4. Why Companies Address Work-Life Issues
      1. To Attract and Retain Talent
        1. Companies Want to Retain Women
      2. To Raise Morale and Job Satisfaction
      3. To Increase Productivity
      4. To Increase Commitment and Engagement
      5. To Reduce Health Care Costs
      6. To Combat Burnout
      7. To Attract Investors
      8. To Be a Good Corporate Citizen
    5. Ways to Address Work-Life Issues
      1. Programs
      2. Policies and Benefits
      3. Practices
    6. Supportive Work Environment
    7. Company Culture
    8. Work-Life Strategy
      1. Developing a Work-Life Vision
      2. Marketing Work-Life Initiatives
    9. How to Begin
    10. Source of Commitment
    11. Anticipating Problems
    12. Developing an Appropriate Marketing Strategy
    13. Putting it All Together: Checklist
    14. Calculating the Return on Investment
      1. Cost and Value
    15. The Future of Work-Life Effectiveness
  26. 23. Caring for Dependents
    1. Child-Care Issues
    2. Direct Child-Care Services
    3. Assessing Child-Care Needs
    4. On-Site and Near-Site Child-Care Centers
    5. Consortium Child-Care Centers
    6. Back-Up (Emergency) Child Care
    7. Care for Sick Children
    8. School-Age Child Care
    9. 24-Hour (Odd-Hour) Care
    10. Other Child-Care Options
      1. Providing Information and Support
      2. Policies and Customized Work Arrangements
      3. Providing Financial Assistance
    11. Elder-Care Issues
    12. Description of Elder Care
    13. Cost of Elder Care and the Needs of Working Caregivers
    14. Employers’ Responses to Employees’ Elder-Care Needs
    15. Information and Support
      1. Elder-Care Consultation and Referral
      2. Elder-Care Workshops/Support Groups
      3. Elder-Care Resource Expo
      4. Work-Life Resource Area
      5. End-of-Life Supports
    16. Policies
    17. Financial Assistance/Financial Planning
      1. Subsidized Emergency or Respite In-Home Elder-Care Services
    18. Direct Elder-Care Services
      1. Geriatric Care Managers
      2. Supports for Community-Based Services
      3. Adult Care Centers
      4. Intergenerational Care Programs
    19. Implementing a New Elder-Care Program
    20. Evaluating an Elder-Care Program
    21. The Future of Corporate Elder Care
  27. 24. Culture at Work
    1. Defining Culture
      1. Tips for Contending with Resistance
      2. Beliefs and Rituals
      3. Diversity
      4. Formality and Innovation
    2. Importance of Culture
    3. Matching Culture with Strategic Goals
    4. Impact of Culture on Total Rewards Programs
  28. Notes
    1. Chapter 12
    2. Chapter 13
    3. Chapter 18
  29. Total Rewards Glossary
    1. Worldatwork Course Names
  30. Handbook References
      1. Chapters 1 to 5 (Total Rewards)
      2. Chapters 6 to 16 (Compensation/Performance Management)
      3. Chapters 17 to 21 (Benefits)
      4. Chapters 22 to 24 (Work-Life)
  31. WorldatWork Bibliography
      1. Publisher: Worldatwork, Scottsdale, Arizona
      2. Worldatwork How-To Series for the HR Professional

Product information

  • Title: The WorldatWork Handbook of Compensation, Benefits & Total Rewards: A Comprehensive Guide for HR Professionals
  • Author(s): WorldatWork
  • Release date: May 2007
  • Publisher(s): Wiley
  • ISBN: 9780470085806