Deck 10: Employee Benefits and Services

Question 1

Kari Scott was trying to make a decision between two job offers.The jobs and the type of organization in which the jobs were located were quite similar but the content and distribution of the total compensation package held significant differences.In trying to make her decision,she made the following comparison list:

$\begin{array}{c}\begin{array}{lll}\\ \text {Base Salary:}\\ \text {Vacation:}\\ \text {Life Insurance:}\\\\ \text {Medical Insurance}\\ \text {Defined Contribution}\\ \text {Pension Plan:}\\ \text {gross}\\\\\\\\\\ \text {Paid Sick Leave:}\\\\\end{array}\begin{array}{lll}\text {Job A}\\\text { \$ 36,000 / year}\\\text {3 weeks/year to start}\\\text {One times annual salary}\\\text { 0.333 \% per \$ 1000 coverage}\\\text {Similar to Job B}\\\\\text {Employee contributes 5 \% of gross}\\\\\text {annual salary; Employer matches 1:1}\\\text {matches 50 \% of employee contribution}\\\text { contribution}\\\\\text {Use up to 10 sick days per year,}\\ \text {unused days paid out at end of year}\end{array}\begin{array}{lll}\text {Job B}\\\text { \$ 45,000 / year}\\\text {2 weeks/year to start}\\\text {Double annual salary}\\\text { 0.333 \% per \$ 1000 coverage}\\\text {Similar to Job A}\\\\\text {Employee contributes 5 \% of}\\\\\text {annual salary, Employer}\\\text {of employee}\\\\\\\text {Use up to 6 sick days per year,}\\ \text {unused days lost at end of year}\end{array}\end{array}$


-The gross (before taxes)value of the vacation days is __________ for Job A and ________ for Job B this year.

A)$1200;$1500
B)$1440;$1800
C)$2160;$1800
D)$2160;$2700
E)$2240;$2700

Answer 1

$2160;$1800

Question 2

Nicolas was very pleased with his promotion to restaurant manager in a fast-paced, high quality chain restaurant in Alberta. At his first staff meeting, he was happy to hear that many of the employees were quite satisfied with their hourly wages at just above minimum wage, as they were able to earn significant tips each shift. After the meeting, he was surprised to overhear, that staff wished they had benefits as part of their compensation. Indeed, he heard several staff members saying that they had "no benefits". In addition to the regular paid vacation time and overtime provisions, Nicolas thought about the free meal with each shift that each employee was entitled to, extra rest breaks and wash up time paid to staff at the end of their shifts, and other perks provided to employees. As Nicolas thought about the busy restaurant environment, he wondered what he could do to increase communication about benefits and services, and possibly increase staff satisfaction with what they did receive. He also thought about how he could approach the owner of the restaurant chain to consider adding new benefits and services for staff.

-The restaurant owner provides indirect compensation to his staff because he should likely experience all the following except:

A)reduced employee fatigue.
B)satisfied employees.
C)reduced turnover.
D)enhanced recruitment.
E)increased grievances.

Answer 2

increased grievances.

Question 3

Kari Scott was trying to make a decision between two job offers.The jobs and the type of organization in which the jobs were located were quite similar but the content and distribution of the total compensation package held significant differences.In trying to make her decision,she made the following comparison list:

$\begin{array}{c}\begin{array}{lll}\\ \text {Base Salary:}\\ \text {Vacation:}\\ \text {Life Insurance:}\\\\ \text {Medical Insurance}\\ \text {Defined Contribution}\\ \text {Pension Plan:}\\ \text {gross}\\\\\\\\\\ \text {Paid Sick Leave:}\\\\\end{array}\begin{array}{lll}\text {Job A}\\\text { \$ 36,000 / year}\\\text {3 weeks/year to start}\\\text {One times annual salary}\\\text { 0.333 \% per \$ 1000 coverage}\\\text {Similar to Job B}\\\\\text {Employee contributes 5 \% of gross}\\\\\text {annual salary; Employer matches 1:1}\\\text {matches 50 \% of employee contribution}\\\text { contribution}\\\\\text {Use up to 10 sick days per year,}\\ \text {unused days paid out at end of year}\end{array}\begin{array}{lll}\text {Job B}\\\text { \$ 45,000 / year}\\\text {2 weeks/year to start}\\\text {Double annual salary}\\\text { 0.333 \% per \$ 1000 coverage}\\\text {Similar to Job A}\\\\\text {Employee contributes 5 \% of}\\\\\text {annual salary, Employer}\\\text {of employee}\\\\\\\text {Use up to 6 sick days per year,}\\ \text {unused days lost at end of year}\end{array}\end{array}$


-The gross (before taxes)value of the life insurance premium paid by the employer is __________ for Job A and ________ for Job B this year.

A)$120;$150
B)$120;$180
C)$120;$300
D)$180;$300
E)$180;$320

Answer 3

$120;$300

Question 4

Nicolas was very pleased with his promotion to restaurant manager in a fast-paced, high quality chain restaurant in Alberta. At his first staff meeting, he was happy to hear that many of the employees were quite satisfied with their hourly wages at just above minimum wage, as they were able to earn significant tips each shift. After the meeting, he was surprised to overhear, that staff wished they had benefits as part of their compensation. Indeed, he heard several staff members saying that they had "no benefits". In addition to the regular paid vacation time and overtime provisions, Nicolas thought about the free meal with each shift that each employee was entitled to, extra rest breaks and wash up time paid to staff at the end of their shifts, and other perks provided to employees. As Nicolas thought about the busy restaurant environment, he wondered what he could do to increase communication about benefits and services, and possibly increase staff satisfaction with what they did receive. He also thought about how he could approach the owner of the restaurant chain to consider adding new benefits and services for staff.

-The restaurant provides extra rest breaks and wash up time to staff at the end of their shifts.This would be best categorized as:

A)holidays and vacations.
B)employee discounts.
C)employee assistance programs.
D)paid time-off benefits.
E)social services.

Question 5

Nicolas was very pleased with his promotion to restaurant manager in a fast-paced, high quality chain restaurant in Alberta. At his first staff meeting, he was happy to hear that many of the employees were quite satisfied with their hourly wages at just above minimum wage, as they were able to earn significant tips each shift. After the meeting, he was surprised to overhear, that staff wished they had benefits as part of their compensation. Indeed, he heard several staff members saying that they had "no benefits". In addition to the regular paid vacation time and overtime provisions, Nicolas thought about the free meal with each shift that each employee was entitled to, extra rest breaks and wash up time paid to staff at the end of their shifts, and other perks provided to employees. As Nicolas thought about the busy restaurant environment, he wondered what he could do to increase communication about benefits and services, and possibly increase staff satisfaction with what they did receive. He also thought about how he could approach the owner of the restaurant chain to consider adding new benefits and services for staff.

-The legally required benefits offered in this restaurant environment include all of the following except:

A)unemployment insurance.
B)workers' compensation.
C)CPP/QPP contributions for employees over 18 years of age.
D)statutory holidays.
E)a minimum number of vacation days per year.

Question 6

Kari Scott was trying to make a decision between two job offers.The jobs and the type of organization in which the jobs were located were quite similar but the content and distribution of the total compensation package held significant differences.In trying to make her decision,she made the following comparison list:

$\begin{array}{c}\begin{array}{lll}\\ \text {Base Salary:}\\ \text {Vacation:}\\ \text {Life Insurance:}\\\\ \text {Medical Insurance}\\ \text {Defined Contribution}\\ \text {Pension Plan:}\\ \text {gross}\\\\\\\\\\ \text {Paid Sick Leave:}\\\\\end{array}\begin{array}{lll}\text {Job A}\\\text { \$ 36,000 / year}\\\text {3 weeks/year to start}\\\text {One times annual salary}\\\text { 0.333 \% per \$ 1000 coverage}\\\text {Similar to Job B}\\\\\text {Employee contributes 5 \% of gross}\\\\\text {annual salary; Employer matches 1:1}\\\text {matches 50 \% of employee contribution}\\\text { contribution}\\\\\text {Use up to 10 sick days per year,}\\ \text {unused days paid out at end of year}\end{array}\begin{array}{lll}\text {Job B}\\\text { \$ 45,000 / year}\\\text {2 weeks/year to start}\\\text {Double annual salary}\\\text { 0.333 \% per \$ 1000 coverage}\\\text {Similar to Job A}\\\\\text {Employee contributes 5 \% of}\\\\\text {annual salary, Employer}\\\text {of employee}\\\\\\\text {Use up to 6 sick days per year,}\\ \text {unused days lost at end of year}\end{array}\end{array}$


-The gross (before taxes)value of the defined contribution pension plan paid by the employer is __________ for Job A and ________ for Job B this year.

A)$1200;$1500
B)$1500;$1200
C)$1800;$1000
D)$1800;$1125
E)$2160;$1125

Question 7

Nicolas was very pleased with his promotion to restaurant manager in a fast-paced, high quality chain restaurant in Alberta. At his first staff meeting, he was happy to hear that many of the employees were quite satisfied with their hourly wages at just above minimum wage, as they were able to earn significant tips each shift. After the meeting, he was surprised to overhear, that staff wished they had benefits as part of their compensation. Indeed, he heard several staff members saying that they had "no benefits". In addition to the regular paid vacation time and overtime provisions, Nicolas thought about the free meal with each shift that each employee was entitled to, extra rest breaks and wash up time paid to staff at the end of their shifts, and other perks provided to employees. As Nicolas thought about the busy restaurant environment, he wondered what he could do to increase communication about benefits and services, and possibly increase staff satisfaction with what they did receive. He also thought about how he could approach the owner of the restaurant chain to consider adding new benefits and services for staff.

-The central problem in the staff not recognizing the benefits and services that they do receive is most likely due to:

A)the lack of employee involvement.
B)management disinterest.
C)union interference.
D)the disorganization of the human resource department.
E)a result of the organization's external environment.

Question 8

Nicolas was very pleased with his promotion to restaurant manager in a fast-paced, high quality chain restaurant in Alberta. At his first staff meeting, he was happy to hear that many of the employees were quite satisfied with their hourly wages at just above minimum wage, as they were able to earn significant tips each shift. After the meeting, he was surprised to overhear, that staff wished they had benefits as part of their compensation. Indeed, he heard several staff members saying that they had "no benefits". In addition to the regular paid vacation time and overtime provisions, Nicolas thought about the free meal with each shift that each employee was entitled to, extra rest breaks and wash up time paid to staff at the end of their shifts, and other perks provided to employees. As Nicolas thought about the busy restaurant environment, he wondered what he could do to increase communication about benefits and services, and possibly increase staff satisfaction with what they did receive. He also thought about how he could approach the owner of the restaurant chain to consider adding new benefits and services for staff.

-In this scenario,the basic types of benefits and services that staff are forgetting to consider are:

A)legally required.
B)life insurance.
C)low cost.
D)salary continuation plans.
E)social services.

Question 9

Nicolas was very pleased with his promotion to restaurant manager in a fast-paced, high quality chain restaurant in Alberta. At his first staff meeting, he was happy to hear that many of the employees were quite satisfied with their hourly wages at just above minimum wage, as they were able to earn significant tips each shift. After the meeting, he was surprised to overhear, that staff wished they had benefits as part of their compensation. Indeed, he heard several staff members saying that they had "no benefits". In addition to the regular paid vacation time and overtime provisions, Nicolas thought about the free meal with each shift that each employee was entitled to, extra rest breaks and wash up time paid to staff at the end of their shifts, and other perks provided to employees. As Nicolas thought about the busy restaurant environment, he wondered what he could do to increase communication about benefits and services, and possibly increase staff satisfaction with what they did receive. He also thought about how he could approach the owner of the restaurant chain to consider adding new benefits and services for staff.

-If Nicolas were able to convince the restaurant chain to provide some additional benefits to employees,one way of placing a maximum known cost on the employer commitment is to offer:

A)a defined benefits plan.
B)a flexible benefits program.
C)unlimited educational assistance.
D)80% coverage on prescription medication costs.
E)short term disability plan.

Question 10

Nicolas was very pleased with his promotion to restaurant manager in a fast-paced, high quality chain restaurant in Alberta. At his first staff meeting, he was happy to hear that many of the employees were quite satisfied with their hourly wages at just above minimum wage, as they were able to earn significant tips each shift. After the meeting, he was surprised to overhear, that staff wished they had benefits as part of their compensation. Indeed, he heard several staff members saying that they had "no benefits". In addition to the regular paid vacation time and overtime provisions, Nicolas thought about the free meal with each shift that each employee was entitled to, extra rest breaks and wash up time paid to staff at the end of their shifts, and other perks provided to employees. As Nicolas thought about the busy restaurant environment, he wondered what he could do to increase communication about benefits and services, and possibly increase staff satisfaction with what they did receive. He also thought about how he could approach the owner of the restaurant chain to consider adding new benefits and services for staff.

-If the restaurant chain is to respond in a traditional way to the problem of employee lack of awareness,confusion,or disinterest in available benefit packages,this would include all of the following except:

A)employee handbooks.
B)information mailouts.
C)allowing employees to select among benefits.
D)information sessions.
E)company newsletters.