EMPLOYEE BENEFITS

AND SERVICES

Presented by
K.Sindhujhak
First MBA(IT)
INTRODUCTION
 BENEFITS is a generic word and used to describe a substantial
elements of compensation which is unique and provided to
employee in non-cash form known as fringe benefits, allowances
etc.,
 Benefits and services are indirect compensations (motivation) and
are not directly related to performance.
 OBJECTIVES
 To increase the commitment of employees to the organization
 To provide for the actual or perceived personal needs of employee,
including financial assistance, company car and petrol etc.,
 To ensure that an attractive and competitive total remuneration
package is provided which both attracts and retains high quality staff
 To provide a tax-efficient method of remuneration which reduces tax
liabilities compared with those related to equivalent cash payments.

These objectives do not include ‘to motivate employees’

They have direct and immediate effect on the performance unless thet
are awarded as an initiatives
eg: presenting a sales representative with latest car if he meets a
particular demanding target,
 CLASSIFICATION OF EMPLOYEE
BENIFITS
Employee benefits can be classified under 7 major groups:
1. Disability income continuation,
2. loss=-of-job income continuation,
3. Deferred income,
4. Spouse or family income compensation,
5. Health and accident protection,
6. Property and liability protection and
7. A special group of benefits and services called perquisites.
 Disability income continuation
 When employees are unable to work because of an accident or
some-health problems disability income continuation payment will
assist them in manintaining their lifestyle with out major modification.
 Components are packaged to maximize employee protection while
maintaining the cost within reasonable limits.
10 major compensation plans are
1. Short-term disability
2. Long-term disability
3. Workers compensation
4. Social security
5. Sick leave
6. Retirement plans
7. Accidental death and dismemberment
8. Group life insurance
9. Non-occupational disability
10. Travel accident insurance
 Loss-of-job income continuation
 This plans are designed to assist workers during short-term period
of unemployment due to layoffs and termination.
Deferred income
Spouse or family income compensation
Health and accident protection
Property and liability protection
A special group of benefits and
services called perquisites.