EMPLOYEE BENEFITS

By: Shrey Patel

Surbhi Suman

Mahek Parekh

Smriti Loomba

Gaurav Jain

Toshika Sahu

Definition

Indirect financial and nonfinancial payments employees receive for

continuing their employment with the company.

Employee benefits and  benefits in kind (also called fringe

benefits, perquisites, or perks) include various types of non-wage

compensation provided to employees in addition to their

normal wages or salaries.

Compensation

• Compensation means the entire package that is paid to an employee, which includes all monetary and non monetary emoluments

Benefits

• Rewards is one part of Compensation

• Benefits tend to drive employee engagement while providing a sense of security, encouraging workers to stay on the job, even during tough times.

Commissions

Importance

Offering a high wage in a job ad instead of benefits might attract applicants at first, but

what is going to RETAIN them after they are hired?

What would stop them from LEAVING your company for

a competitor offering a HIGHER WAGE?

Classifications

• There are many benefits and various ways to classify them.

• We will classify them as:

Pay for time not worked

Insurance benefits

Retirement benefits

Personal

Services

Pay for time not worked• This is the most costly benefit, because of the large

amount of time off that most employees receive.

Unemployment

Insurance

Vacations

And

Holidays

Sick

Leave

Parental

Leave and

FMLA

Severance

Pay

Retirement benefits

SocialSecurity

PensionPlans

Defined Benefit PlansDefined Contribution Plans

Insurance benefits

Worker’s Compensation

Hospitalization , Health and Disability Insurance

Wellness Programs

Health saving accounts

Life Insurance

Personal services

EAP’s

Work-LifeBenefits

ElderCare

FlexibleWork

Schedules

ChildCare

Flex time

Problems..

Accurate

System

Cost to

company

FairnessComplicated

Benefits allowance rules

Conclusion• Benefits are a very important part of employee pay

package.

• A good salary may be able to lure employee to company but in long run it’s good benefits that keeps them there.

• It helps maintain low retention rate , which in turn helps company grow.

• It is one of biggest factors that motivates employee.

• A very important Career Anchor.