BENEFITS AND

REWARDS
CHAPTER 6
 INTRODUCTION
WAGES
> are cash payments paid to
employees on a regular basis in
return for their labor.
BENEFITS
> can be both financial and non-
financial and they can be statutorily
required or optional
> specified in the contract of
employment.
 INTRODUCTION
REWARDS
> Only given to individuals or smalls
groups who are considered
deserving.
> Tied to a worker’s performance on
the job
> Used as a motivational tool to
encourage high levels of
performance.
BENEFITS PROVIDED TO EMPLOYEES

Employers provide benefits to their employees

because benefits can :
Ω help attract staff to join the organization
Ω Help retain existing employees
Ω Increase morale of employees which will lead to
higher productivity
BENEFITS PROVIDED TO EMPLOYEES

Benefits can be classifies as:

Ω Protection programs which promote the health of
employees and guard against loss of income caused
by illness, accident and unemployment
Ω Paid time-off whereby an employee receives wages
even though he does not work
Ω Accomodation and enhancement benefits which
relate to assisting employees maintain a satisfying
lifestyle.
 FACTORS CONSIDERED WHEN
DESIGNING A BENEFITS SCHEME
◊ Eligibility and waiting periods
◊ Kinds of benefits
◊ Level of benefits
◊ Financing of the benefits
◊ Fixed package or employee choice
◊ Communication
 STATUTORY BENEFITS
‽ The wage ceiling for protection under
the Employment Act is RM1500 per
month and for Sabah and Sarawak
Ordinances Rm2500 permonth.
‽ Maternity Protection
‽ Time-off Payments
‽ The Employees Social Security Act
(SOCSO)
 NON-STATUTORY
BENEFITS
‽ Time-off payments
‽ Health care
‽ Insurance
‽ Financial Services
‽ Subsidies and services
‽ Retirements benefits
‽ Allowances
‽ Educational fee assistance
 REWARDS SYSTEMS
Rewards, both financial and non-financial,
reinforce desirable behavior and spur the
employee on to higher levels of productivity.
 REWARDS SYSTEMS
HR manager’s job is to give support to managers
and make certain that recognition is given
appropriately by:
‡ Conducting a survey of employees and managers to
determine their attitudes towards recognition
‡ Training managers how to provide meaningful
recognition
‡ Help management provide a variety of recognition
programs
‡ Track the results of recognition programs
 NON-FINANCIAL REWARDS
‡ Performance awards
‡ Letters of appreciation
‡ Sponsorship to seminars, conferences and overseas
tours
‡ Rewards for long service
 FINANCIAL REWARDS
‡ Salary increases
‡ Bonus and profit sharing
‡ Rewards for salespeople (commissions)