LO7 - Implications for Human Resources

Cards (5)

Implications for HRM
Comply with all legal requirements and maintain accurate employee records
Avoid duplication
Reducing accidents to lower the cost of workers’ compensation
To control ballooning costs, consider cost/benefit of each type of benefit offered along with coverage rates (e.g., prescriptions costs at 80% rather than 100%, 30-day maximums for travel insurance, maximums for paramedical coverage)
Retention of key employees 
Innovative and flexible benefits are very effective tools to attract and retain highly skilled staff.
Benefit audit to examine claims and trends:
Identify opportunities for savings
Ensure insurers and third-parties are effective
Exert effective control over benefits area
Identify who is in control of benefits budget
Compare claiming patterns to other employers
Generally, GST has to be paid on the following benefits:
Company cars
Car operating costs
Tax return preparation
Short-term residential accommodation
Holiday trips within continental North America
Frequent flyer points
Financial counselling
Parking
To ensure benefits are leading to desired organizational outcomes: 
Define the objectives of the organization
Link HR and organizational objectives
Assess the needs of employees
Assess and comply with legal requirements
Compare company’s benefits with competitors
Make sure benefits are valued by employees
Conduct an annual benefit audit