B1 Regulatory Environments for Benefits Programs Questions and Answers

Ask them to review or provide feedback, especially on something you have done for them

Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position

Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections

Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern

They tend to be fairly consistent because the elements of pay may differ, but the concerns are universal.

They generally require a greater degree of detail for lower level employees who have less of an understanding of pay plan design.

They usually require more detail for senior employees regarding plan details and performance and the needs from one employee group to another can vary greatly.

They should be kept to a minimum for employees at all levels to maximize efficiency and efforts can be focused only on those who have questions.

A portion of one's salary paid during reserve duty and military leave

A practice of paying a lump sum to employees during a company shutdown

A continuation of an employee's salary after termination

A continuation of a portion of an employee's salary to a beneficiary after the death of an employee

Customarily and regularly direct the work of at least two full-time employees

Perform work that is intellectual and varied

Devote less than 15% of his/her time to nonexempt work

Possess knowledge of an advanced type in business administration

Market adjustment

Longevity

Individual performance

Skills   

40

45

50

55

Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

Fixed costs and variable costs are equally important and both should be kept to a minimum.

Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

There is a decreasing number of females in the workforce.

Employees are expressing a greater desire for choice in their benefits.

Employees have longer career expectations.

Decreasing costs are causing growth in the numbers of benefits employers offer.   

Personal leave

Sabbatical

Severance allowances

Paid time off (PTO) bank   

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.

Compiling data needed to calculate salary budgets and merit increases

Identifying trends and key messages emerging over time

Reviewing historical trends to complete annual budgets

Providing quarterly incentive estimates for accruals

The employer maintains a wage disparity between employees who do unequal, but comparable work.

He or she is paid less than employees who are not members of the same protected group.

He or she receives a lower wage than a co-worker of the opposite sex.

500,000

840,000

8,000,000

9,700,000

The change in working capital over a specific period of time, typically one year

A company’s efficiency in converting short-term capital into cash

A company’s mean capital expenditure per employee

The amount of cash needed to meet the company’s short-term obligations

Recognize possible issues and concerns that will drive budget planning

Prepare quarterly and annual reports and their associated statements

Withhold payroll taxes for all elements of compensation

Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle

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

The size of the employee's family

The employee's annual salary

The employee's health history

The employee's premium contributions   

Defined benefit plan

Death benefits

Defined contribution plan

Vision plan   

The employee

A concerned co-worker

The employee’s manager

The employee’s department head

At established dates and then every six months thereafter

On January 1 and July 1 of each year

Once when they move a step, and again when the step value changes

At the anniversary date and at the annual merit increase date   

General

Cost of living

Automatic

Merit   

They are all reported on the balance sheet.

They are all sources of capital.

They all incur the same costs to the business.

Nothing. Each of these is a different financial metric.

Americans with Disabilities Act

Vocational Rehabilitation Act

Civil Rights Act of 1991

Age Discrimination in Employment Act