EMPLOYEE BENEFITS

Definition :-

Employee benefits in kind, (also called fringe benefits, perquisites or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. 

Benefits are applied to items such as pensions, free refreshments, leisure activities on work time, holiday pay, insurance, and so on.

Objectives of Benefits : 

The benefits or services are provided to the employees in order to satisfy the human, social and  economic need perspectives. Thus, the important objectives are as follows:

• To improve and maintain sound employees relations 
• To promote welfare of employees 
• To motivate the employees by making them satisfied and identifying their unsatisfied needs
• To protect the employees from health and safety hazards
• To create the sense of belongingness among employees

Nature of Benefits :   

Organization provide different kind of services and benefits according to their need and policy criteria. Whether it is a basic payment or additional pay, the goals of both the employees and employers must be met.

TYPES OF EMPLOYEE BENEFITS

Whether it is a payment or the extra  offering both the  employer's and the employees objectives must be met. At the same time, Government legislations recommending such provisions should also be viewed critically. Organizations, therefore provide a variety of benefits and services as per their policy and need criteria. However, different people group these differently.

According to Dale Yolder and Paul D. Stadohar they are grouped as:

1. To secure employment by making the offers more attractive.
2. To protect the health of employees by offering health and leave payments.
3. To ensure old age and retirement plans so as to develop belongingness.
4. To encourage an individual to feel pride in doing something and being a part of the organization.

According to Robert H. Hoge they are grouped as:

1. Payment for time not worked such as weekly off payment, approved holiday payments etc.
2. Extra for extra time worked such as over time payment, extra shifts and special duty payment.

Types of Benefits :   

PERKS / BENEFITS:-  

DEFINITION :

Perks, as defined, are to encourage the employees to walk with his/her head lifted with smartness so as to motivate him/her and provide him/her the opportunities to earn more or to enhance his/ her loyalty to the organization by way of awards for continuing to work for the company. 

Perks for social justice:

In a society, an employees has to maintain the standard of  living and be able to project his/her worth and position. Therefore he/she must get a fair opportunity to earn and enjoy facilities, and be rewarded for being associated with that organization. These perks are:

• Over time payment for extra effort beyond duty hours
• Annual bonus for having been with the organization and being part of their annual earnings.
• Retaining allowance

Unemployment/ disability / accident compensation