Employee benefits and benefits in kind (also called fringe benefits, perquisites,perks,etc.) are various non-wage compensations provided to employees in addition to their normal wages or salaries.
It helps in keeping the employees contended,well balanced and physically,mentally,socially as well as at times spiritually happy as well, and all this is essential for success both on the organisational as well as individual level.
BENEFITS OF EMPLOYEE BENEFIT PROGRAMS:
1. Efficiency in administration.
2. Commitment among employees.
3. Promotes productivity
4. Happy families
5. Harmonious relationships at the work place
EXAMPLES OF EMPLOYEE BENEFITS:
1. Legally Required Payments:-
a) Old age, survivors,disability and health insurance/social security
b) Workers compensation
c) Unemployment compensation
2. Contingent and Deferred Benefits:-
a) Pension plans
b) Group life Insurance
c) Group health insurance ( viz. Medical expense for hospitalization and surgical & Disability income for short term and long term)
d) Guaranteed annual wage
e) Prepaid legal plans
f) Military leave and pay
g) Jury duty and bereavement paid leave
h) Maternity leave
i) Child care leave
j) Sick leave
k) Dental benefits
l) Tuition aid benefits
m) Suggestion awards
n) Service awards
o) Severance pay
3. Payments for Time Not Worked:-
c) Voting pay allowances
4. Other benefits:-
a) Travel allowances
b) Company cars and subsidies
c) Moving expenses
d) Uniform and tool expenses
e) Employee meal allowances
f) Discounts on employer's goods and services
g) Child care facilities
PURPOSE OF EMPLOYEE BENEFITS
1) identification and development of personal interest with the interest of the organisation.
2) Achieving integration in organisational functioning
3) Creating will and determination among members of the services for work improvement and innovation.
4) Mobilising the available manpower for productive and useful activities in the organisations
5) Keeping members of the organisation informed of latest developments in sphere of employee benefits
6) Organising informal clubs of youth,women, to serve as centers of discussion and expression of innovative ideas.
7) Providing an open forum for employees to discuss problems and find indigenous solutions which may be efficient and economical for the organisations.
8) Encourage the employee to adopt modern changes which can accelerate the efficiency of the organisation.
9) Arranging extra curricular activities t generate social awareness through publicity.