Employee Benefits from an organizational perspective.
Employee Benefits
Figure 1 Employee Benefits
Talent war is never ending in the business world, thus staff
retention is crucial and for the same reason companies should focus on an
attractive remuneration package to ensure happy workforce which will minimize
to send their resumes to competition.
According to Cockman, “employee benefits are those benefits
which are supplied by an employer to or for the benefits of an employee, and
which are not in the form of wages, salaries and time rated payments.” These
benefits were established in the mid of the 20th century with the
rise of unions as a measure to reduce the effect of unionism.
Why it is important to have employee benefits in
an organization.
Figure 2 Importance of Employee Benefits
Here we will be looking at the most common
employee benefits among the organizations
Pension & Social Security : A scheme which was initiated
for future benefits of the employees where they will receive a monthly payment
upon retirement. Here the employers makes contribution for a collective fund,
and are subjugated by law. Social security on the other hand is where the both
the parties pay to a collective body which eventually will be repaid upon
retirement
Child care scheme: Privilege given to working parents by the
employer to find work life balance, It has always been a puzzle for working
parents and this is the main reason companies started to offer child related
benefits. This can be in a form of an allowance or an onsite options. Company
has to draw the line to well fit the parents in the team
Special paid leaves: As name suggests, even though state and
private owned entities offer a wide range of paid sick leaves such as,
maternity leaves, parental leaves and annual leave, there is always room for
enhancement. Companies can opt for options where employee is paid for day offs
like Education, unlikely events with in close relatives, birthdays etc...
Health & Life Insurance: Companies provide a wide range of wellbeing protection to
the employees to ensure a stress free and healthy workforce. Common thing seen these
days within companies are that they provide wellbeing protection to their employee’s
dependants as well. Employees can also come up with health benefit programmes
such as weight loss competition, Smoking cessations, plus home gym allowance in
case employees are working remote. These kind of health benefits are welcomed
by employees as well.
Flexi Scheduling and More Day Offs: This can be an extension to
child care scheme as well, if a company cannot provide child care scheme they
should at least provide flexi working time. In addition the organization can
allow employee to work on adaptable working hours. This will help in talent
retention. Also the focus should be on allowing employees to wind up work when
tasks are accomplished rather than that of 9 - 5 job timings.
Educational support for Children: It is dutiful on an organization
to provide this benefits as it’s also a social responsibility. This is also a
common benefit given by many a companies for employees above certain category.
Benefits that are
most important across different generations
Figure 3 Most important benefits among
the different generations in the workplace
Benefits that are most appreciated by different
generations
Figure 4 most appreciated benefits
among the different generations in the workplace
Video 1 Four Types of Employee Benefits (AIHR, 2021)
Conclusion
As stated in above context, a fringe benefit is a motivating
factor for productivity. Even though we have briefed the most common benefits
offered by many firms, there is a gap between actual, important and appreciated
benefits by each generations. A company should develop their own employee
benefits after studying the requirements and interest of the employees that
fits the best in order to attain competitive edge over the competition.
References
Barbara A.
Friedberg, 2021. Investopedia. [Online]
Available at: https://www.investopedia.com/articles/personal-finance/040116/retirement-plans-pensions-vs-social-security.asp
[Accessed 1 May 2022].
Neelie Verlinden, 2022. AIHR. [Online]
Available at: https://www.aihr.com/blog/types-of-employee-benefits/
[Accessed 23 Apr 2022].
Vantage Circle, 2022. Vantage Circle. [Online]
Available at: https://blog.vantagecircle.com/employee-benefits-compensation-ideas/
[Accessed 1 May 2022].
Hepburn, L., 2021. 4 Types of Employee Benefits Every HR
Professional Should Know. [Online]
Available at: https://youtu.be/boG6mZnPXXA
[Accessed 25 April 2022]
This article clearly shows the importance providing proper employee benefits to its employees in both reducing the employee turnover and increasing employee loyalty to the organization as providing better employee benefits will show that the management values its employees. Great article. Good job.
ReplyDeleteMost private-sector organisation does not care about these benefits. Therefore government was compelled to make it a law and published it as gazzet /Act s. well explained.
ReplyDeleteEmployees benefits are playing major role in HR side. When staff are thinking that they have sufficient benefits in their organisation, they put their maximum effort to support their organisation.
ReplyDeleteWell done
There is a secret in the developed company. The benefits to employees will be greater. If the employee is mentally satisfied, it can be seen gradually in the growth of the organization.HR plays a major role in this role.
ReplyDeleteProviding financial and non-financial benefits are critical to attract talented individuals to the work force. Further it can effectively retain the existing talent pool..
ReplyDeleteEmployee benefits enhance the value of working for an organization and can improve the health and quality of life of its employees. All the best!
ReplyDelete