Human Resources Management for Public and Nonprofit Organizations

284

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After you read this chapter, you should be able to:

Understand the importance of employee benefi ts to strategic

human resources management (SHRM)

Explain how employee benefi ts are important components of

SHRM

Distinguish between required benefi ts and discretionary benefi ts

Describe strategies to improve the quality of work life in public

and nonprofi t organizations

Describe strategies to improve the quality of life of public and

nonprofi t employees

T

he preceding chapter on compensation provided an overview of

salaries and wages, the direct fi nancial compensation provided to

employees for their contributions to the organization. But wages constitute

only part of the compensation package. This chapter addresses indirect

compensation, more commonly referred to as benefi ts.

The emphasis in compensating employees should be on the total

compensation package, not just on direct wages or salary. Benefi ts are a

critical ingredient in creating an accurate compensation picture. The

importance of benefi ts should not be underestimated; an attractive benefi ts

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CHAPTER TEN

BENEFITS