Benefits Administration and Strategy Flashcards
6 cards from real CBP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Benefits Administration and Strategy flashcards as text
What is the primary purpose of a wellness program from a strategic benefits perspective?
Answer: To improve employee health, reduce absenteeism, and lower long-term healthcare costs
Strategically, wellness programs aim to improve workforce health, reduce chronic disease burden, lower medical claims costs, decrease absenteeism, and increase productivity over time.
What is the goal of 'benefits benchmarking' in the context of strategic plan design?
Answer: Comparing the organization's benefits offerings and costs to those of peer employers to ensure competitive positioning
Benefits benchmarking compares an organization's plan design, cost sharing, and coverage levels to industry peers and competitors to assess competitiveness in attracting and retaining talent.
Which approach allows employees to select from a 'menu' of different benefit options, tailoring their package to personal needs within employer-set limits?
Answer: Cafeteria plan / flexible benefits plan
Cafeteria plans (under IRC Section 125) allow employees to choose from a range of pre-tax benefit options — such as different health plans, FSAs, and supplemental coverage — to build a personalized benefits package.
In the context of benefits ROI, what does a 'replacement cost' analysis typically measure?
Answer: The cost savings from retaining employees versus the cost of recruiting and training replacements
Replacement cost analysis quantifies how much it would cost to recruit, hire, and train a replacement when an employee leaves, helping justify investment in retention-focused benefits.
What is 'voluntary benefits' in the context of the total rewards package?
Answer: Supplemental products employees can purchase at group rates through payroll deduction, typically at no direct cost to the employer
Voluntary benefits (e.g., critical illness, accident, pet insurance, legal plans) are supplemental coverages that employees can elect and pay for via payroll deduction, with the employer providing access to group pricing.
When aligning benefits strategy with total rewards strategy, which business objective is benefits design most directly intended to support?
Answer: Attracting, retaining, and engaging a productive workforce
Benefits strategy is fundamentally aligned with the talent management objective of attracting top candidates, retaining valued employees, and driving engagement and productivity.