HUMAN RESOURCE MANAGEMENT

Fringe Benefits: Meaning, Need And

Importance, Objectives, Principles, Types And
Advantages.

By:
Ms. Farha subhani
(Asst. professor)
IMS-R
 What is Fringe Benefits
•Employment Benefits and services are
alternatively known as Fringes , Service
Programs, employee benefits or hidden
payroll.
• An extra benefits and services include
any benefits that the employee in
addition to direct remuneration.
Need & Importance of Fringe Benefits
• To retain the employees.
• To motivate performance.
• As a social security.
• Trade Union demand.
• Skill shortage.
• Employee Demand.
Objectives of Fringe Benefits
The important objectives of fringe benefits are:
a. To motivate the employees by identifying and satisfying
their unsatisfied needs.
b. To create and improve sound industrial relations.
c. To protect the health of the employees and to provide
safety to the employees against accidents.
d. To provide security to the employees against social
risks like old age benefits and maternity benefits.
e. To create a sense of belongingness among employees
and to retain them. Hence, fringe benefits are called
golden handcuffs.
f. To promo the employees’ welfare
g. To meet the requirements of various legislation
relating to fringe benefits.
Principles of Fringe Benefits
•
Benefits and services are need to be provided to the employees
on the basis of a genuine interest in the protection and promotion
of their well-being
• To satisfy the real need of the employees
• Benefits need to be cost effective
• Benefits need to be as broad-based as possible
• Administration of the benefits need to be preceded by sound
planning
• Employees need to be educated to make use of the benefits
• Fulfilling wishes of employees as expressed by their union
representatives and bargaining the power of union which has to
be considered
Types of Fringe/ Employee Benefits and Perks

1. For Employment Security

2. For Health protection
3. For old age and retirement
4. For Personnel Identification,
Participation and Stimulation:

Fringe benefits Classified:

a) Payment For Time Not Worked
b) Extra Pay For Time Worked:
c) Employee Security
d) Retrenchment Compensation:
e) Lay-Off Compensation:
f) Safety And Health
Advantages of fringe benefits
Advantages of fringe benefits
 Increase in entreat
 Minimum throughput
 Improvised selfesteem
 Dedicated Workforce
 Health is wealth
 Regulatory in health checkup
 Social security
 A step for betterment
 Increased productivity
 Upbringing employees Growth
 Tax Advancement
 Benefits offering
 advancement