2. Employee Benefits & Services
O Meaning and Definition
O Why Benefits and Services?
O Types of Employee Benefits and Services
O Principles of Fringes
3. INTRODUCTION
O Would the three salespersons and the receptionist
work for free? No.
O You always have to give things to people in return
to what you take from them
O Compensation refers to this exchange.
O It is a means to attract, motivate and maintain
employee
5. Why Benefits and Services?
O To persuade and motivate employee.
O Not linked with the employee performance
O Includes any benefits employee receive apart
from the total direct benefits
O Helps increase the wealth and well-being of
the employee at the cost of an employer
6. BENEFITS
O Indirect Compensation or benefits received
from employment that is in addition to the
regular, ordinary salary or wages.
Supplemental
Pay
Time-Off
Benefits
Insurance
Benefits
Retirement
Benefits
Types of Employee
Benefits
9. Retirement Benefits
Retirement plans to reward long service employees
Contributory Plan:
Both employer and employee contribute
Non-Contributory Plan:
Employer pays the entire amount.
Also includes
Early Retirement
Retirement Counseling
10. Time- Off Benefits
Rest from physical and mental efforts of a job
Sick days and Well
days
Leaves of Absence
Time-Off
Breaks
On the Job breaks
Tea break, Meal break
etc.
Holidays and
Vacations
Family and Medical leave Act 1993
11. SERVICES
O An intangible commodity that the employees find
desirable
O Usually provided by the organization at no cost to
employee or at a significant reduction from what
might have to be paid without the organization’s
support.
O This might include eating facilities, transportation
facilities, child care facilities, housing services ,
educational services, financial services (discount )
etc.
12. BENEFIT v/s SERVICE
Applies to those items for
which a direct monetary
value to the individual
employee can be ascertained
Applies to items for which a
direct money value for the
individual employee cannot be
readily established
13. Benefits and Services
Treats
• Picnics
• Birthday
treats
• Festival
bashes
• Dinner for
the family
• Coffee breaks
• Dinner boss
• Free lunches
Awards
• Certificates
• Citations
• Plaques
• Trophies
• Scrolls
• Letters of
appreciation
Knick-knacks
• Diaries/Planners
• Calendars
• Wallets
• T-shirts
• Company watches
• Bags
• Desk accessories
• Tie-pins/Brooches
Tokens
• Early time-offs
• Movie tickets
• Coupons
redeemable at
stores
• Vacation trips
• Anniversary and
birthday
allowances/prese
nts
Family and Medical leave Act 1993Firms with more than 30 employees are legally bound in which workers are entitled to 12 weeks of unpaid leave during the 12 months in a year.
