B1 Regulatory Environments for Benefits Programs Questions and Answers

To achieve organizational cost savings through base pay reductions

To increase employee identification with the organization's success

To defer compensation expenses to future reporting periods

To reward individual employees for some significant contribution   

Job descriptions must be written to ensure they cover the critical functions of the job

Companies should determine pay based on physical skills

Companies must conduct pre-employment medical exams on all new employees

Special promotion requirements must be developed for the disabled employee

Investors and Finance want to see money spent wisely. Legal must ensure compliance, and HR and operating departments want to see their needs taken into account to attract, retain and motivate a high quality workforce.

Operating departments and HR understand the company must live within its means and Finance cannot allocate funds to a budget if it is likely that profitability will be adversely affected.

Investors want to maximize gains and want to see compensation tightly controlled and Legal needs to ensure that compensation plans do not attract undue scrutiny.

Operating departments view compensation as it applies to them, HR must balance available resources to attract, retain and motivate employees and Finance knows the value of a motivated workforce and will provide the budget necessary to achieve it.

EBIT

EPS

Net income

Operating profit

When working in more than one department

When working less time than his or her normal schedule

When working in locations other than the corporate office

When working a holiday or weekend   

Mental health coverage and health care coverage

Pay for time not worked and income protection programs

Unemployment and disability

Defined contribution and defined benefits plans   

The current value of holdings

The current value of holdings and how much it will grow over time at a given rate of return

The desired value in the future and what needs to be invested today to realize that amount

The difference between the desired value in the future and the current value as a percentage of the desired value

Americans with Disabilities Act

Vocational Rehabilitation Act

Civil Rights Act of 1991

Age Discrimination in Employment Act

Implement the merit increase budget as is because the anticipated financial obligations have made it necessary

Meet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases

Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible

Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount

Hourly rate

Salary

Piece rate

Production rate