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This document discusses fringe benefits in the workplace. It defines fringe benefits as indirect compensation given to employees in addition to cash pay. The objectives of fringe benefits are to improve employee morale, motivate workers, provide security, and retain talent. Fringe benefits are categorized as mandatory or optional and can include health insurance, retirement plans, and more. Recent practices emphasize flexibility, innovation, and harmonization. Principles for effective fringe benefits include satisfying real needs, being cost-effective, and considering employee input.
This document discusses fringe benefits in the workplace. It defines fringe benefits as indirect compensation given to employees in addition to cash pay. The objectives of fringe benefits are to improve employee morale, motivate workers, provide security, and retain talent. Fringe benefits are categorized as mandatory or optional and can include health insurance, retirement plans, and more. Recent practices emphasize flexibility, innovation, and harmonization. Principles for effective fringe benefits include satisfying real needs, being cost-effective, and considering employee input.
This document discusses fringe benefits in the workplace. It defines fringe benefits as indirect compensation given to employees in addition to cash pay. The objectives of fringe benefits are to improve employee morale, motivate workers, provide security, and retain talent. Fringe benefits are categorized as mandatory or optional and can include health insurance, retirement plans, and more. Recent practices emphasize flexibility, innovation, and harmonization. Principles for effective fringe benefits include satisfying real needs, being cost-effective, and considering employee input.
➢ Understand the Objectives of Fringe Benefits ➢ List Features of Fringe Benefits ➢ Key Reason for offering fringe benefits ➢ Understand different types of fringe benefits ➢ Recognize the recent practices of fringe benefits ➢ Know the principles of fringe benefits Fringe benefits Fringe benefits are indirect form of compensation given to employees in addition to the various forms of cash pay- base pay, dearness allowance and inventive pay.
They provide a quantifiable value for individual
employees. They are the indirect form of compensation as they are not related to the performance but are granted to the employees for just being a member of the organization. Objectives of fringe benefits ➢ To create and improve sound industrial relations ➢ To boost up employee morale. ➢ To motivate the employees by identifying and satisfying their unsatisfied needs. ➢ To provide qualitative work environment and work life. ➢ To provide security to the employees against social risks like old age benefits and maternity benefits. ➢ To protect the health of the employees and to provide safety to the employees against accidents. ➢ To promote employee’s welfare by providing welfare measures like recreation facilities. ➢ To create a sense of belongingness among employees and to retain them. Hence, fringe benefits are called golden hand-cuffs. ➢ To meet requirements of various legislations relating to fringe benefits. Reasons for Offering Fringe Benefits Categories of Benefit • Mandated (Statutory) and Optional (Voluntary) Benefits • Accounting Purpose Classification, Types of Fringe Benefits • For Employment Security • For Health Protection • For Old Age and Retirement • For Personnel Identification, Participation and Stimulation Current Fringe Benefit Practices
• Innovation: organizations are offering many
new types of fringe benefits to their employees • Flexibility in fringe benefits: employees are allowed to choose from an array of benefits within certain cost limits and • Harmonization is tried to be attempted to give a feeling of equity and fair play to employees Principles of Fringe Benefits ➢ Benefits and services must be provided to the employees on the basis of a genuine interest in the protection and promotion of their well-being. ➢ The benefits must satisfy a real need. Employees resist or are indifferent to any benefit which is not like by them ➢ The benefits must be cost-effective ➢ The benefits should be as broad based as possible ➢ Administration of the benefits should be preceded by sound planning ➢ The wishes of employees expressed by their union representatives and the bargaining power of the union must be considered ➢ Employees should be educated to make use of the benefits.