Employee Benefits

Increase
quality of life

Harmonious
Social and legal
relation with
compliance
Trade union

Objectives of Offering
Employee what other
Builds G/W organization
Benefit s are
offering

Fulfill the
Attract and retain
needs of the
best employee
employee
Principles of Employee Benefit
Genuine intention
Harmony with
of promotion of
Union
employee welfare

Appreciated by Employee
the employees awareness

Cost effectiveness Effective planning

 Problems in Adoption and Administration of
Employee Benefit.

Unethical
Pressure Over
claims of No cost Apathy of
emphasis on
from Trade benefit
benefits Analysis
Benefit employee
union Programme
Employee Service
 Employee Services
• Employee services are beyond the usual
package of benefits.
• For example: Free food, gym membership,
flexible working hours etc.
• Employee services are subset of employee
benefits which the company offer in addition
to the employee’s salary.
• It helps employees to meet their basic needs
in the same way their salary would!
 Few more examples…

• Health Services
• Food and Drink
• Time Off
• Paternal Services
• Self Care
• Entertainment
• Travel
• Flexibility
Fringe Compensation
 Fringe Benefits
• Fringe benefits are benefits in addition to an
employee’s wages. So, any monetary benefit
an employer offers in exchange for an
employee’s services that does not include
their salary is a fringe benefit. 
 Fringe Benefits
• The benefits are known as ‘fringe’ benefits since
they are relatively insignificant or fringe
components ‘of compensation.
• Several terms such as welfare expenses, wage
supplements, perquisites, extra wages, hidden
payroll, and social charges are used to denote
fringe benefits.
• It is a benefit which supplements the employee’s
wages and build up a positive corporate image.
The main objectives of fringe benefits may be as follows

1. To meet the needs of employees and safeguard

them against certain hazards of life, particularly
the ones which an individual, especially of small
means, cannot himself provide for
2. To attract and retain employees
3. To earn gratitude and loyalty of the employees
4. To remain competitive in the market with regard
to the provisions of fringe benefits
5. To boost the image of the organisation
 The main objectives of fringe benefits may be as follows:

6. To seek meaningful cooperation of employees in

production process
7. To infuse confidence, motivate and boost morale of the
employees
8. To reduce rate of absenteeism and labour turnover
9. To reduce the influence of trade unions
10. To reduce statutory interference
11. To improve human and industrial relations
12. To promote employee welfare and provide qualitative
work environment.
 Limitations of Fringe Benefits and Services

1. Very often, employees feel that the benefits and

services provided are their rights. In reality, this is not
so.
2. The administration of benefits and services add to
labour cost and involves lot of paperwork.
3. Average and poor performance continue to stick to the
job and are not interested in improving performance.
4. The HR manager may overlook other important
functions as he is pre-occupied with” administration of
benefits and services.
 Components of
Discretionary Core Fringe Benefits
 Components of
Discretionary Core Fringe Benefits
• Protection Programs
Income protection programs
Health protection programs

• Pay for time-not-worked

Holidays
Vacation
Sick leave
Personal leave
Funeral leave
Cleanup, preparation, travel time
 Components of
Discretionary Core Fringe Benefits
• Services
Employee assistance programs (EAPs)
Family assistance programs
Tuition reimbursement
Transportation services
Outplacement assistance
Wellness programs
Totally Integrated Employee Benefit Program
• Examples of totally integrated employee benefits:
Work schedules with
- Flextime
- job sharing
- condensed workweeks
- telecommuting
-Employee assistance programs
- family leave
-adequate health care coverage-
-elderly care (Geriatric services)
- resource and referral services
Flex time
 Flex Time
• Flex time is a flexible work hours policy where
employees are allowed to choose when their
workday starts and ends, as long as they achieve the
daily, weekly or monthly hours set by the employer.

• There are several variations, but the core principle is

the same – to provide employees with more
freedom and flexibility in making their own work
schedule.
 Benefits
• To the employee • To the employer
• Improved work life • Higher employee
balance satisfaction
• Better health • Safer work environment
• More opportunities • Attract top talent
• Improved productivity
 Challenges
• Upper management's resistance to change.
• Control issues, especially in terms of
supervision of work.
• Working as a team with highly variant
schedules.
• Maintaining safety and security of personnel
and data.
 Compressed work week
• A compressed workweek generally
means working four days instead of five. This
schedule may involve working fewer total
hours each week or shifting your regular work
hours to a four-day period, e.g., working four
10-hour
 Telecommuting
• Telecommuting, also known as tele work or
remote work, involves the use of computers and
telecommunications technology to overcome
the constraints of location or time on work.

• In a global economy, physical location has

become less important than efficiency of
operations. Remote work may occur from home,
a telework center, or on an airplane or bus.
 Benefits
• Companies that give their workers the option
of telecommuting report its benefits in greater
productivity, lower costs, more options for
finding and retaining qualified staff, and
improved employee health,
 Challenges
• Being out of the day-to-day flow of information.
• Being away from the hub of activity in terms of office
politics, management and intellectual ferment.
• A negative impact on career advancement and
perception that employees away from the office are
not as available as those working in a traditional
office setting.
• Distraction by spouse, children, pets and others in
the workspace.
 Job Sharing
• Job-sharing is the practice of having two different employees performing
the tasks of one full-time position. Each of the job-sharing partners
works a part-time schedule, but together they are accountable for the
duties of one full-time position.

• It requires a high degree of compatibility, communication and

cooperation between the job-sharing partners and with their supervisor. 

• Like part-time jobs, job-sharing arrangements may appeal particularly to

students, parents of young children and employees nearing retirement,
helping them balance careers with other needs.

• For employers, the practice may include retention of skilled employees,

increased employee loyalty and productivity, and a measure of flexibility
that can occur when two people fill one job slot.
EAP
 Employee Assistance Program (EAP)
• An Employee Assistance Program (EAP) is a voluntary, work-based program
that offers free and confidential assessments, short-term counseling,
referrals, and follow-up services to employees who have personal and/or
work-related problems. 

• EAPs address a broad and complex body of issues affecting mental and
emotional well-being, such as alcohol and other substance abuse, stress,
grief, family problems, and psychological disorders. 

• EAP counselors also work in a consultative role with managers and

supervisors to address employee and organizational challenges and needs. 
Many EAPs are active in helping organizations prevent and cope with
workplace violence, trauma, and other emergency response situations
 Elderly Care ( Geriatric)
• It involves a range of medical services
provided by skilled doctors, nurses,
physiotherapists etc.
 Resources and Referral Services
• This service offers employees a customized
and enhanced child care resources and
referral services.
• This service is meant for immigrants ( living
outside country) employees. It helps them in
locating appropriate services like day care
centers, summer camps, nursery schools etc.
Thank You!
 Knowledge Based Pay
Knowledge-based pay is a system in which workers’ salaries relate
closely to their academic attainments and levels of skill. In other
words, the more you know and can do, the more your employer will
pay you.

Knowledge-based pay focuses on employees’ ability to improve their

education to increase their income.

It is a system in which employers reward their workers for reaching

specific goals in training and education. The employer also rewards
them for improving their skills.

Knowledge-based pay aims to encourage workers to study more and

improve their skill set.
 Job-based vs. knowledge-based pay

• Knowledge-based pay is not the same as job-based pay. While the former rewards
people for what they know, the latter rewards them according to their position in the
company.

Let’s suppose ABC Cranes Inc. employs crane operators and crane cleaners. Jane is a
crane operator, and Peter is a cleaner. Peter has a Ph.D. (doctorate) in mechanical
engineering. Jane, however, never went to university. She has a crane operators
diploma.
Jane earns $23 per hour while Peter earns just $10 per hour.
Peter and Jane work in a job-based pay system. Peter’s doctorate is making no
difference to his income.

• Some employers pay one person more than a colleague in the same position. They
pay one person more because that person has a higher academic level. Many civil
services across the world are like that.
 Knowledge based Pay
Pros
• Proponents of the system say
that it encourages personal
growth and development
among employees. This can
subsequently lead to
improved performance across
the entire company.
• Proponents also argue that
the system rewards
ambitious staff who strive to
perform at a higher level.
• Cons
• Critics of knowledge-based pay
say that the system does not
reflect what the employee is
doing. They also argue that the
system is more likely to lead to
discriminatory pay practices.
• Why should one person get
more money than another
person for doing exactly the
same job? Shouldn’t the focus
be on encouraging people to
do a better job?