Name: 
 

Chapter 11 – Employee Benefits


Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 
Compensation surveys indicate that approximately _____% of employees underestimate the value of their benefits:
a.
5
b.
25
c.
30
d.
50
e.
65
 

 2. 
Employee benefits are considered to be:
a.
direct compensation
b.
indirect compensation
c.
the total compensation package
d.
the total rewards approach
e.
none of the above
 

 3. 
Which one of the following is NOT one of the objectives of a sound benefits program:
a.
to reduce turnover
b.
to attract and motivate employees
c.
to meet all of employees' needs
d.
to improve employee satisfaction
e.
to maintain a favourable competitive position
 

 4. 
“Flexible benefits plans” allow employees to:
a.
choose different payment options to medical professionals
b.
choose a no-ceiling amount on extended health care options
c.
choose a core or standard benefits plan
d.
choose the benefits that are most suited to their needs
e.
none of the above
 

 5. 
Which one of the following is NOT one of the ways to effectively communicate benefits plans to employees:
a.
a benefits telephone hotline
b.
in orientation sessions
c.
on a paycheque stub
d.
personalized benefit statements
e.
all of the above are effective ways to communicate benefits plans to employees
 

 6. 
Which one of the following is NOT a legally required benefit in Canada:
a.
contributions to CPP/QPP
b.
contributions to Workers' Compensation
c.
contributions to company pension plans
d.
only “a” and “b”
e.
only “a” and “c”
 

 7. 
The HR department can control workers' compensation costs in all the following ways, EXCEPT:
a.
perform an audit to assess high risk areas
b.
reduce communication with injured workers to allow them sufficient recovery time
c.
prevent injuries by ensuring proper ergonomic design of the workplace
d.
manage the care of an injured worker
e.
keep a partially recovered employee at the worksite
 

 8. 
Which of the following is NOT an approach used to contain health care benefits:
a.
ensuring that patients only receive one opinion for surgical procedures
b.
increased deductibles
c.
put dollar limit on specific benefits, such as hearing aids
d.
use preferred providers
e.
put a benefit cap on dispensing fees
 

 9. 
The category of benefits that includes statutory holiday pay, vacation pay, incentive bonuses, bereavement, jury duty, military duty, rest breaks and coffee breaks is called:
a.
employment insurance
b.
payment for time not worked
c.
social security insurance
d.
payment for time worked
e.
workers' compensation
 

 10. 
Employer benefit plans may include all of the following discretionary benefits, EXCEPT:
a.
pension plans
b.
health care benefits
c.
prescription drug coverage
d.
Employee Assistance Plan
e.
Provincial Medicare
 

True/False
Indicate whether the statement is true or false.
 

 1. 
One advantage of an online benefits program is the significant cost savings to the organization.
 

 2. 
Before a new benefit is introduced, organizations should consult with employees.
 

 3. 
Most benefits represent a variable rather than fixed cost to the organization.
 

 4. 
Employers are increasingly expecting employees to take on responsibility for their own choice of benefits, benefits planning, and some costs of benefits.
 

 5. 
Sick leave benefits are provided by all employers to their employees in Canada.
 

 6. 
Under a work-sharing program, organizations can reduce the workweek of all employees instead of laying them off and employment insurance will pay for time not worked in the workweek.
 

 7. 
Employers must often a pension plan option to their employees.
 

 8. 
Employee Assistance Programs and Wellness Programs only add costs to an organization and have little or no effect on work productivity.
 

 9. 
Group life insurance is the benefit most commonly provided by employers.
 

 10. 
Communicating the cost of benefits to employees will help to reduce the cost of those benefits.
 



 
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