Figure 1 Employee Benefits (Source: https://www.aihr.com/blog/types-of-employee-benefits/)
Employee benefits are the additional back that workers get from an organization other than the salary. Worker advantage programs were presented
within the mid of 20th century, when exchange unions began to
develop organizations begin to introduce advantage programs to decrease the effect
of unionism (Vicky, 2015), companies needed to decrease the clashes and
employee turnover, so they came up with diverse sorts of representative
benefits. Not as it were that, companies presented numerous representative
benefits to draw in the abilities and to increase the work fulfillment as well (Virgin Pulse Wellness Glossary, 2017).
If we look at some of the benefits that a worker is entitled to in the
modern-day, we can say the following are the most common.
Pension & Social Security: Social security could be financing that's paid by the company and in some cases apart from employee’s salary moreover
deducted and paid to the specific body which is able to gather and repay in full after retirement. And the pension is a workplace retirement plan which could be a payment that's paid every month by the
government or by the company to cover the costs after retirement (Friedberg,
2019).
Day Care: Companies
offer this service to support the employees to work happily without worrying
about their babies and this has become very popular in the west in many
companies which are been even nominated as best place to work, this benefit mostly
reduces female employee turnover.
Special Paid Leaves:
Both public and private sector organizations offer their workers some special
leaves as maternity leaves, paternity leaves, casual leaves and sick leaves are
mostly paid leaves. And in some organizations employees are offered paid time
off for social events such as protests, close relative demise, birthdays, etc.
Health & Life Insurance: Numerous companies deliver wellbeing protections for their workers
to let them work stress-free almost their wellbeing and most of the
organizations deliver wellbeing protections to the dependants of the representatives
as well (Minnesota State, 2013). And this specific benefit has become the most
valued by the workers.
Work Flexibly & More Day Offs: Certain organizations offer adaptable
hours to hold the talents and
some of the time they are permitted
to work from home as well. More excursion
time lets the workers to unwind
after a frenzied work plan,
by this bosses point to realize efficiency through work satisfaction (Virgin
Pulse Wellness Glossary, 2017).
School Support for Children: This benefit is a social
responsibility of an organization and many organizations nowadays offer these
special benefits to their employees economically in stable countries.
As explained above, when an organization takes initiative to
provide the fringe benefits for employees, it really motivates them and as “Happy
bees make more honey” employees turn to give their extra commitment to achieve
the organizational goals. Further, it creates a positive vibe at the workplace
and attracts the best-fits to the labour pool where people love/dream to work
for.
References
Friedberg, B., 2019. Retirement Plans: Pensions vs. Social Security. [Online]
Available at: https://www.investopedia.com/articles/personal-finance/040116/retirement-plans-pensions-vs-social-security.asp
[Accessed 25 August 2021].
Minnesota State, 2013. Types of Employee Benefits. [Online]
Available at: https://careerwise.minnstate.edu/jobs/benefittypes.html
[Accessed 25 August 2021].
Vicky, 2015. Employee Benefit Programmes: History, Growth and Types of
Benefits. [Online]
Available at: http://www.yourarticlelibrary.com/employee-management/employee-benefit-programmes-history-growth-and-types-of-benefits/60365
[Accessed 25 August 2021].
Virgin Pulse Wellness Glossary, 2017. Employee Benefits. [Online]
Available at: https://www.virginpulse.com/employee-benefits/
[Accessed 25 August 2021].
No doubt that employees are the main deciding resource for the success of a company. Employee benefit are published law requirement for employers but most employers go beyond and treat to their employees by understanding the importance of it and taking it as a social responsibility. By having an attractive employee benefit package a company has the ability to attract high skill employees to the company which will be a competitive edge.
ReplyDeleteEach employee's ultimate goal is to work in a peaceful and more engaging environment. Setting such a background as an employer will increase productivity, reduce absenteeism, and so on. In today's business context, this is one of the most influential factors I see.
ReplyDeleteGood article and good topic Amjad.
ReplyDeleteJust to add that reviewing the benefits plan program on a regular basis is another critical stage in the benefits administration process. The benefits program must be evaluated on a regular basis to ensure that it continues to fulfill the organization's goals and the requirements of its employees. Changes in the business climate, the economy, the regulatory environment, and the demography of the workforce all have an effect on benefit offers.
Traditionally, most benefits used to fall under one of the four major types of employee benefits, namely: medical insurance, life insurance, retirement plans, and disability insurance. The results of the study suggested that mandatory benefits and fringe benefits were positively influenced organizational commitment. The results further denoted that fringe benefits fully mediated mandatory benefits when predicting organizational commitment.
ReplyDeleteA company's investment in employees' health and well-being, as well as the future, is important. In addition, a solid employee benefits package can assist in attracting and keeping talent. Benefits can help businesses stand out from the competition.
ReplyDeleteThrough this article, you have shown some of the key areas to focus on as an organization.informative article Amjad.
Good Job
Important topic Amjad ultimate goal of every employee is to work in a nice and more attractive environment. Establishing such an employer environment will increase productivity, reduce absenteeism, etc. In today's business environment, this is one of the most influential factor. HRM has vital role to play on this regard
ReplyDeleteEmployee benefits schemes are important because it shows workers that the company have invested not only their health, but also for their future. A strong employee benefits package can help to attract and retain talent by differentiating the organization from their competitors. On the other hand healthy staff reducing the cost of organization as employees with fewer health risks experience fewer days of illness, fewer visits to the doctor, and spend more time working in the organization, bringing their best performance every day.
ReplyDeleteNice article Amjad. As you mentioned there are many Employee Benefits in the Organizational Context. However, the most important is “What benefits do employees value most 2021?”Here are 5 workplace benefits that are on the rise in 2021.
ReplyDelete• 1) Childcare and family benefits.
• 2) Home office expenses.
• 3) Mental health support.
• 4) Remote work and flexible schedules.
• 5) Employee Resource Groups.
Employee Motivation is a key success for any business or organisation. To keep the employee happy and motivate, most of the organizations use different strategies. Out of those strategies, ensure employee benefit would be a one critical area. Employee benefits can be a financially related or work related. In both context, organization tries to motivate and keep employee happy with the organization. Therefore while focusing the financial benefits, leadership should focus other areas that can be make impact on this topic.
ReplyDeleteYou have explained the topic very detailed Amjad. Thanks for sharing this.
Depending on the type of organization and the job, employee benefits may be quite different. For example, government employee benefit packages for full-time ..
ReplyDeleteWell Said Amjad! as explained in great detail employee motivation is the key factor in the final overall productivity of the organization and the "Extrinsic Benefits" offered are just as important "Intrinsic Benefits" that are given to the employee. Great Article!! thank you for sharing.
ReplyDelete