INTRODUCTION

Management is concerned with attracting and keeping employees, whose performance meets at least minimum levels of acceptability and at keeping absenteeism and turnover to tolerable levels

The provision of benefits and services can be and are important in maintain the employees and reducing the turnover and absenteeism low.

The purpose of such benefits is to retain people in the organization and stimulate them to greater effort and higher performance.

They foster loyalty and act as a security base for the employee.

Defination OF Employee Benefits

All forms of financial and tangible services and benefits employees receive as a part of an employment relationship.

Definition of Employee BenEfits

Any form of compensation other than direct wages paid to an employee and may include:

Employers share of legally required payments, (Statutory Benefits) Payment for time not worked (paid vacation, paid holidays, parental leave, etc.) Employers share of medical and medically related payments Employers share of retirement and savings plan payments Others - employee discounts, tuition assistance, childcare

Who is covered by the benefit?

Active Employees

Full-time and Part-time employees Dependents of employees

Former employees Retirees

Dependents of retirees

Others...

Who is Covered By the Benefit

There is more diversity in the workplace - one size fits all benefits may no longer work.

Married or cohabitating couples,

Single head of households,

Caretakers for parents/children, Employees that are still students, continuing education

And more

What is being protected

Employees are concerned with job security, family time, paying bills during times of income loss, adequate health insurance, making ends meet, saving for college, adequate childcare, and adequate elder care.

What is Being Protected?

Medical Expense

Health Insurance Dental Insurance Vision Insurance Flexible Spending Account

What is Being Protected?

Losses due to disability

Workers Compensation
Statutory Disability Long term disability Social Security Life Insurance for Employee Life Insurance for Dependents of employee

Losses due to employees death

Key Man Policies

What is Being Protected?

Retirement needs of Employee and Dependent

Saving Plans Defined Contribution Plans Unemployment Insurance Reimburser for Unemployment

Loses due to unemployment

Others

Why are Employee Benefits Offered?

Business reasons:

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To attract and hold capable employees To improve corporate efficiencies and productivity Tax advantages offered to employers Low employee turnover

Why are EmPloyee benefits Offered?

Social reasons

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A social objective Because of Moral Suasion to prevent further government programs To improve employee morale

When do you offer employee benefits

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Certain Benefits require a set number of hours

Community rating Health Insurance require employees to work 20 hours per week

Most Group Life or Dental programs require employees to work 30 hours a week.

Certain Benefits must be provided to all employees regardless of hours worked.

When Do you offer EmpLoyee Benefits

There are two types of benefits:

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Protection Benefits

Protect employees against the risk of serious loss exposure. Consist of medial expense benefits, life insurance, short and long term disability benefits. The need for immediate protection is great and the reasons for a probationary period no longer make sense.

When do you offer employee benefits

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Accumulation Benefits

Consist of pension plans, bonuses, profit sharing, tuition assistance programs. These benefits are used as rewards for service length and loyalty.

When do you Offer Employee Benefits

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There may be financial or social reasons to apply a waiting period with both the Protection Benefits and Accumulation Benefits,

Objectives of Benefit Programs To Improve Morale

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To Meet Health and Safety Needs To Attract Good Employees To Reduce Turnover To Reduce Unionism

To Maintain a Competitive Position

To Enhance the Organization's Image Self Development

Basis for Employee Benefits

Organizational Objectives Human Resources Objectives

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Employee Benefit Package

Government Regulations Collective Bargaining Employee Participation Employee Needs Financial Resources Recruiting Competition
Providing Individual Benefits

EMPLOYEES

Communicating Benefits

Types of Benefits

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Time-off (vacation, sickness, holidays, etc.) Medical Payments Retirement Paid Rest Periods (breaks) Life Insurance

Why Organizations Provide Benefits

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Employee demand: To meet rising prices and increased cost of living employees demand various types of benefits Example: Variable dearness allowance, Enhanced HRA

Trade union demands: The growth and strength of trade unions has substantial influence on the benefits and services a company offers
Employers preferences: Employers prefer to give benefits to employees as it enhances employees morale and works as an effective motivational tool provided it is within the accepted norms and limits

Employee Benefits Required by Law

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Coverage of Benefits
1.

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Payment for time not worked

2. Employee Security
1.
2. 3.

Severance pay
Lay-off Guaranteed annual wage

(a) Vacation (b) Holidays (c) Sick leave (d) Shifts premium

4.

Retrenchment
compensation

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5. Maternity benefit 6. Dependent benefit 3. Safety benefits

7. Insurance benefits (a) Life insurance (b) Vision insurance (c) Dental insurance

4. Health Benefits

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8. Welfare and recreational facilities (a) Educational assistance

9. Old age and retirement benefits

(a) Provident fund

(b) Pension (b) Legal assistance (c)Deposit linked insurance (c)Housing facilities

(d) Medical benefit (d) Financial services

(e) Gratuity (e) Employee assistance programs (f) Retirement counseling

FACTS...

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Only 33% of employees are believed to understand the value of benefits

Of these 67% of these employees undervalue benefits by over 2/3s

9% of employees say they have no idea the value of their benefits Only 21% of employees say they have access to CCVs 82% of companies offer CCV Only 27% of employees say they have healthcare benefits when 57% actually do Only 12% of employees would recommend their company. 4 years ago it was double this

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Problems raised by benefit programs

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Charge of Paternalism = When too many benefits & services are offered to employees , a feeling develops that employers are playing the role of parents and workers are looked upon as children. Excessive Expenditure = Its a very costly affair and involves a great deal of paper work

Maintenance of least productive worker = With increase in benefits and services employees ,particularly when they are not very productive ,tend to stick to their jobs and are not interested in changing them.

HCL - Employees First

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Five fold path Support Knowledge Recognition Empowerment Transformation

Application in our organisation

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AROMA AGROTECH PVT.LTD (ANSHULs company) Health care benefits Life Insurance

Sick leaves
Vacation Holidays Cafeteria Provident Fund Marriage Bonus Disabilities Notice before termination of employement

OTHER COMPANIES

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(FMCG,AYURVEDIC, OPTICAL STORES,IT & CONSTRUCTION)

Existing : Holiday Financial assistance Legal assistance Bonus Sick leave

Future

Cafeteria
Insurance Educational assistance

Google

Personal needs 12 weeks maternity leave

Financial assistance

loans for marriage, illness

allowances house rent allowances: safe house outside transport allowances

Pension schemes 401k retirement plan

Personal security insurance again death in service.

Free shuttle Other benefits free onsite hair saloons