Module 4_Benefits&Services.pptx

7/26/2019 Module 4_Benefits&Services.pptx

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Employee Benefits and Services


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Employee Benefits and Services

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.


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Concept

Employee benefits and services

Any benefits that the employee receives in addition to direct remuneration

!ringes embrace a broad range of benefits and services that employeesreceive as part of their total package. "t is based on critical #ob factors and

performance. $enefits and services however are indirect compensation

because they are usually e%tended as a condition of employment and are not

directly related to performance&

'fringe benefits are also called welfare e%penses, wage supplements sub wages

or social charges, etc


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Concept

$enefits and compensation provided to the employees

usually depend on the conditions of employment and

other factors like security, safety, health, welfare and

recreation of employees

These benefit programs must be managed carefully to

enhance recruitment and to boost the morale of theemployees


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Why Organizations Provide Benefits

Employee demand( To meet rising prices and increased cost ofliving employees demand various types of benefits

E%ample( )ariable dearness allowance, Enhanced *+A

o Trade union demands( The growth and strength of trade unionshas substantial influence on the benefits and services acompany offers

Employer&s preferences( Employers prefer to give benefits toemployees as it enhances employee&s morale and works as aneffective motivational tool provided it is within the acceptednorms and limits


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!actors influencing the decision to set up a particular employee benefit

and service program

ost

Ability to pay

-eeds of the employees

$argaining strength of the trade union

Ta% consideration

ocial responsibility

The reaction of employees


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Benefits

/. 0ayment for time not worked

1a2 )acation

1b2 *olidays

1c2 ick leave

1d2 Miscellaneous types of non3working plans

1e2 hifts premium


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4. Employee ecurity

/. everance pay

4. 5ay3off

6. 7uaranteed annual wage

8. upplementary unemployment benefits

9. +etrenchment compensation

Benefits


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6. afety benefits

8. *ealth $enefits

1a2 Medical benefit or insurance

1b2 Managed care

*ealth maintenance organization

0referred3provider organization

Benefits


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9. Maternity benefit

:. ;ependent benefit


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=. >elfare and recreational facilities

1a2 Educational assistance

1b2 5egal assistance

1c2*ousing facilities

1d2 !inancial services

1e2 Employee assistance programs


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?. @ld age and retirement benefits

1a2 0rovident fund

1b2 0ension

1c2;eposit linked insurance

1d2 Medical benefit

1e2 7ratuity

1f2 +etirement counseling

Benefits


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Employeeservices

"n addition to fringe benefits, organizations also provide

services that employees find desirable.

These services are provided at low or no cost to the

employee.These are provided at the discretion of the management

with consultation with the trade unions.


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These services include

ervices related to type of work performed3 includes subsidies for the

purchase and upkeep of work clothing and uniform.

Eating facilities

Transportation facilities

hild care facilities

*ousing services

!inancial and legal services

+ecreational, cultural and social programs

Educational servicesMedical services

@utplacement services

!le%ible time

afeteria service


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Fringe benefits in India

>hen a study was conducted , it was revealed that

/?,:,?=/ companies pay little over 4/8=.6 million in

wages and fringe benefits per year in "ndia.

The fringe benefits were high in mining and plantationindustries low and very low in manufacturing sector.

The Buantum of the bonus varied sector to sector

A. 0ayments for time not worked

$. tatutory fringe benefits

. )oluntary benefits


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0roblems raised by benefit programs

Charge of Paternalism C >hen too many benefits D 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 ="t&s a very costly affair and involves a great deal of

paper work

Maintenance of least productive or!er = >ith increase in benefits and

services employees ,particularly when they are not very productive ,tend to stick

to their #obs and are not interested in changing them.

"eglect of other personnel functions = ;ue to e%cessive concern from

management they stop emphasizing on other aspects of personnel programs

which can develop a concern among the employees .


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Administration of benefits and services

@rganizations have seldom established ob#ectives, systematic plans and

standards to determine the variability of the program

5ack of employee participation

Managers take little interest in benefits program and trade unions are almost

hostile to schemes

Employees have little awareness about such programs

These problems can be avoided if following steps are taken(

To establish benefit ob#ectives

To assess environmental factors

To assess competitiveness To communicate benefit information

To control benefit costs and evaluation


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Social Security

ILO defined Social Security as the protectionwhich the society provides for its members througha series of public measures,

against the economic and social distress thatotherwise would be caused by the stoppage orsubstantial reduction of earning

resulting from sickness, maternity, employmentinury, unemployment, invalidity, old age,provision for medical care, provision for subsidiesfor families with children


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Social Security

!he "orkers #ompensation $ct,%&'(

!he )mployees State Insurance $ct,%&*+

!he )mployees rovident Funds and-iscellaneous$ct,%&.'

!he )mployees /eposit0linked Insured Scheme,%&12

!he -aternity 3enefit $ct,%&2%

!he ayment of 4ratuity $ct,%&1'


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"elfare Legislations

The Factories Act,1948

#overs areas including health ,welfare, safety, workinghours, annual leave 5 employment of women 5

children

The Mines Act,1952

Facilities for mine workers like creche, shelters for

food 5 rest, sanitary 5 refreshment facility


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!he -otor !ransport "orkers $ct,%&2%

provisions for canteens, clean,ventilated rest rooms,uniforms,washing allowance, medical facilities, first

6aid facilities for motor transport workers etc

"elfare Legislations


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!he #ontract labour 78egulation 5$bolition9$ct,%&1:

!he contractor is re;uired to provide the following

welfare 5 health measures to the contract workers


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"elfare measures

!here are also a number of voluntary welfareamenities provided to the employees

a9 )ducational Facilities

b9


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QWL

MODULE 4


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Quality of Work Life (QWL)

QWL is a value driven process, which is aimed

towards meeting the twin goals of enhanced

effectiveness of the organization and improved

quality of life at work for the employees

QWL is tge degree to which work in the

organisation contributes to material and

psychological weel being of its members


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QWL

Major categories that provide the frameworkAdequate and fair compensation

afe and healthy working conditions

!pportunity to use and develop humancapacities

!pportunity for continued growth and security

ocial integration in the work organisation

"ight to personal privacy

Work and total life space

ocial relevance of work life


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QWL

Working Conditions

#roper $llumination

%emperature

#ressure &oise

'umidity

ongenial Atmosphere

upervisor

mpathetic olleagues

*ender quality

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Module 4_Benefits&Services.pptx

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