www.a2zmba.

com

Meaning and Definition

what is employee Services and Benefits??
..fringes embrace a broad range of benefits
and services that employees receive as part of
their total package.pay or direct
compensationis based on critical job factors
and performance.

www.a2zmba.com

Why Benefits &

Services??
Indirect remuneration may:
Mitigate fatigue
Discourage labor unrest
Satisfy employee objectives
Aid recruitment
Reduce turnover
Minimize overtime costs

www.a2zmba.com

Benefits as Incentives
Do Benefits motivate employees????

www.a2zmba.com

Types of employee benefits &

services
To hold that a benefit is a fringe, three criteria
need to be fulfilled:
It should be computable in terms of money
The amount of benefit is generally not
predetermined
No contract, indicating when the sum is
payable, should exist

www.a2zmba.com

Examples of
fringes

1. Legally required payments

- Old age, survivors, disability and health insurance (commonly known as
social security)
- Workers compensation
- Unemployment compensation
2. Contingent and Deferred benefits
- Pension plans
- group life insurance
- military leave and pay
- maternity leave
- child care leave & sick leave etc.,
3. Payments for time not worked
- vacations & holidays
- voting pay allowances
4.Other benefits
- travel allowances & moving expenses
- uniform tool expenses

www.a2zmba.com

Principles of
benefits
Benefits and services must be provided to the
employees on the basis of a genuine interest
in the protection and promotion of their wellbeing
Benefits must satisfy a real need
The benefit must be cost effective
The benefit should be as broad based as
possible
Employees should be educated to make use
of benefits
The wishes of employees are expressed by
their union representatives
www.a2zmba.com

Administration of benefits &

services
what are the problems faced in indirect
remuneration ??

www.a2zmba.com

.contd
These problems can be avoided if the following
steps are followed:
Establishing benefit objectives
Assessing environmental factors
Communicating benefit information
Controlling benefit costs and evaluation

www.a2zmba.com