BUSINESS RESEARCH PROJECT

ON
MONETARY VERSUS FRINGE BENEFITS FROM THE
PERSPECTIVE OF WORKING CLASS

Submitted To: Dr. Preeti Rajpal Singh

Class: BMS 2A

Submitted By:
Deeksha Agarwal (18041)
Japshabad Singh Suri (18066)
Kartik Arora (18071)
Kunal Vats (18076)
Acknowledgement
We would like to express our esteem admiration to Dr. Preeti Rajpal Singh, Associate Professor
at Shaheed Sukhdev College of Business Studies, Delhi University, for her precious and
constructive suggestions during progress of this research work. This paper would not have
been possible without her exceptional support. Her comprehension, proficiency and attention
to detail have been an inspiration. Her willingness to give her time so generously has been very
much appreciated.
This project has helped us to do a lot of research and understand the sentiments and
preferences of the working class. We have gained practical knowledge of planning and
executing a hardcore research and subsequently analysing the results thereof. We are
extremely thankful to all the respondents for sparing their valuable time to fill our
questionnaire survey.
We are also grateful for the insightful inputs offered by the anonymous peer at our university.
The hard work and contribution of one and all have improved this study in multifarious ways
and saved us from many errors; those that inevitably remain are entirely our own
responsibility.
Abstract
In today’s fast-paced and highly competitive world, different human resource practices are
being adopted by various companies. Managers have started acknowledging the importance
of the fact that spending more in order to retain the dedicated and talented employees is not
a loss to the company. It, in fact, brings about high morale and sense of security among the
employees which leads to lower turnover and higher profits. Thus, it becomes crucial to
understand the priorities of the employees with respect to monetary and fringe benefits, their
composition in salary packages, and the contribution they have towards employee satisfaction.
This study attempts to do the same using various statistical methods.

1. Introduction
1.1 Background
Human Resource Management practices refer to the activities of an organization for managing
human resources and assuring that the core reason of employment is to fulfil the
organizational objectives. The practices of human resource management, play an extremely
important part in order to achieve organizational goals and in achieving competitive
advantage. They act as a crucial backbone in facilitating the operations of the organization.

The concept of compensations and fringe benefits provided to employees has grown very
intensively. Benefits borne by the organization has a positive impact on employee performance
and therefore employees work in a positive environment with a relaxed mind. The main idea
of remuneration refers to all kinds of financial and non-financial tangible benefits that
employees tend to receive as a part of their employment commitment. There are two major
typed of compensation, one are the monetary benefits that are provided in the form of cash
against the hours of work done by the employees and the second one refers to the non-
monetary benefits which includes non-cash benefits such as medical insurance policy, group
life insurance, health benefits, flexible working schedules, leaves, etc. Fringe benefits comprise
the employee benefit programs including medical insurance, leaves, flexible working hours,
good environment, etc.

Without straying away from the awareness of the business objectives, the job satisfaction can
be mentioned as an essential part of discipline, self-esteem and employee performance. The
job satisfaction of the employees is important to increase the organizational efficiency and
decrease employee turnover. Hence, managers today want more than what is provided by
compensation packages.

1.2 Reason of Study

The purpose of the study is to be able to investigate and understand the impact of monetary
incentives and fringe benefits on employee motivation. Respondents’ views on different kinds
of incentives will also indicate their preferences and desires. The need to conduct the research
is to highlight the barriers and restraints that are faced by the employer when the employees
get de-motivated after a span of time of employment. After recruiting an employee, companies
tend to expect maximum employee productivity. The problem arises when the employees, at
a certain point start looking for other opportunities. And their job satisfaction starts to shrink
due to lack of fringe benefits provided by the employer.
1.3 Objectives
To draw a comparison between monetary incentives and fringe benefits or personal
acknowledgement from the perspective of working class. Various hypotheses like relationship
between statement of motivation stimuli and choice of respondents, relationship between
monetary incentives and choice of respondents, relationship between other beneficial motives
and choice of respondents, relationship between reasons for preferring monetary incentives
and choice of respondents etc will be tested. This prior formulation of specific hypotheses will
help in understanding the relationships in a better manner and use of statistical measures will
help in providing a quantitative structure to the analysis. Factors influencing respondents’
decision-making skills will also be studied.

2. Literature Review
Many researches have been made recently on the importance of benefits programs for
employees, fringe benefits and employee satisfaction. Chukwudumebi and Kifordu 2018
concluded that fringe benefits play a vital role in the level of employees‟ morale and
productivity of companies and there is an association between fringe benefits and welfare
matters.
Sierpińska and Kulisa 2018 concluded that the most popular benefits are primary and special
health care, professional training and courses, gym and fitness club passes, use of business
phone for private purposes and life insurance while, the most desirable additional benefits
among employees include an extended medical package, a company car for private use and
flexible working hours. However, Sharma, Jaiswal et al. 2018 states that employee security
contributes most to the employee satisfaction in comparison with the other types of fringe
benefits.
Ali, Hussain Khan et al. 2018 indicated through results that salary has the strongest impact on
job satisfaction level and relationship with co-workers has weakest impact on it. Opportunities
for promotion and recognition & rewards emerged as major sources of dissatisfaction. The
study showed that personal determinants like gender, age, personality, marital status and
organizational determinants like salary, promotion opportunities, recognition & rewards,
relationship with supervisor & co-workers, fringe benefits, working conditions, work itself
and tenure have a significant positive relationship with job satisfaction except qualification of
employees which has insignificant relationship with it.
These research studies analysed the impact of monetary and non-monetary benefits to the
level of satisfaction of employees. As fringe benefits include many types of non – monetary
benefits as well, it becomes difficult to analyse the impact of non-monetary benefits to the
level of satisfaction of employees. A distinct approach has not been adopted by the researches
to measure the impact of fringe benefits separately. Through this research, an effort has been
made to analyse the impact of different types of monetary and fringe benefits on the level of
employee job satisfaction.
3. Research Methodology
All the data collected for study is through primary sources. A google form survey was
conducted to understand the preferences of different people. The respondents were
requested to fill the shared form which inquired about diverse variables of study that might
impact the working class. The survey collected essential information and recorded individual’s
responses for the examination.
The purpose of this report is to study the impact of fringe benefits on employees’ motivation.
Employees belonging to different sectors, industries, age groups, work experience and life
stage perceive the compensation differently and hence individual view point may alter within
a same organisation as well. Hence, primary data collection is used as it allows to record
individual perspective and aspirations
MS Excel and SPSS are used to analyse the data collected through survey.
Different scales were used to design the questions such as nominal - non-numeric or where
the numbers have no value, ordinal - non-numeric concepts put in order, and interval scale -
numeric scales in which we know both the order and the exact differences between the values.
Some of the questions designed were in rank order scale to allow the respondent to rank the
given alternatives available, some were in Likert’s scale to measures how strongly people feel
about something or agree with the given statement, some were in semantic differential scale
to know how much the respondents are satisfied with the given situation or to derive the
respondent’s attitude towards the stimulus object.
Some questions using nominal data had to be improved as the object in question may not apply
to all the respondents and hence, the successive questions using different scales were also
modified wherever required.
Descriptive Research design is used in the study to focus more on the demographic pattern as
to answer what and how the respondents feel about the object in question rather than why
they feel that way. It allows to analysis the quantifiable information of the sample to infer
population statistics. Such research design allows cross sectional data interpretation like
employees of same age group but different industrial sector or employees in same industrial
sector but different gender etc. This research also ensure that the variables were uncontrolled,
i.e., none of the variables were influenced.
Hypothesis
1 Health Protection Benefit
H0: Health protection benefits might not have an impact on an employee’s job satisfaction.
H1: Health protection benefits might have an impact on an employee’s job satisfaction.

2 Recreation Leaves
H0: Recreation leaves shall not play a role in shifting of employee’s job satisfaction.
H2: Recreational leaves shall play a role shifting of employee’s job satisfaction.
3 Flexible Working Hours
H0: Flexible working hours may not affect an employee’s job satisfaction.
H3: Flexible working hours may affect an employee’s job satisfaction.
4 job security
H0: Recreation leaves shall not play a role in shifting of employee’s job satisfaction.
H4: Recreation leaves play a role in shifting of employee’s job satisfaction.

5 Job enrichment
H0: Job Enrichment do not impact employees’ motivation
H1: Job Enrichment impact employees’ motivation

Findings
The data collected through primary research focuses on understanding the impact of the
various fringe benefits under consideration on employee job satisfaction. This is done by
bifurcating each benefit into variables to have a deeper insight into understanding the real
value attached with each benefit. The data hereby collected is quantitative in nature and use
of Likert Scale is made extensively to extract relevant data points. The categorical data points
have been converted to numerical formats for easy analysis by allocating a common scale of
1-5, where 1 is the positive/favourable response and 5 is the most negative/unfavourable
response.

Demographics
In order to make sure that the data set is relevant to the study and not lopsided for any
particular segment.

The frequencies for the demographic data obtained from the survey are:

Gender Gender Number Percentage

Male 52 57.14285714

Female 39 42.85714286

Total 91 100

Male Female
 The above table shows that there is almost a balanced sex ratio with a little higher weightage
to Males, this incidence is primarily because of a higher proportion of males in the working
class of the Indian population.

Age Distribution
Age Groups Count Percentage

Below 21 4 4.395604396

22-25 38 41.75824176

26 - 35 19 20.87912088

36 - 45 12 13.18681319

46 - 50 12 13.18681319

51 and Below 21 46 - 50 51 and above 36 - 45 22-25 26 - 35

above 6 6.593406593
The table above illustrates the detailed
distribution of age groups among the participants
Total 91 100 of the survey. The majority of the responses are
from the age group 22-35 owing to the short time
and reach at hand for. In addition to this, the following age group is preferred as they represent
the changing desires of employees from their jobs.

The impact of this also seen on the further demarcation in educational qualification with
majority of responses having a degree below bachelor
Educational
Qualification Frequency Percentage Educational Qualifications
Senior Secondary 28 30.76923077 Doctorate

Bachelors degree 38 41.75824176 Masters degree

Masters degree 18 19.78021978 Bachelors degree

Doctorate 7 7.692307692 Senior Secondary

Total 91 100 0 10 20 30 40
 Industry
Others
Transporation
Information Technology
Electronics
Financial Institutions
Construction
Aviation
Hospitals
Hospitality
Retail
Banking
Insurance
Telecom
FMCG

0 2 4 6 8 10 12 14

The above graphical representation shows that largest of the respondents are from IT industry.

DESCRIPTIVE ANALYSIS

Before we study the various factors individually, we determine if there actually is a need to
understand each one in detail.

Benefits Frequency

Monetary 25

Fringe 34

Both are equally

32
important

The above table shows that the trend is in favour of fringe benefits and employees consider it
partially more significant that monetary benefits. However, it also presents that more than
1/3rd of the respondents give equal weightage to both. This lays the precedence to understand
the variables effecting employee job satisfaction in detail.
 1. HEALTH PROTECTION BENEFITS: This segment wishes to study the prevailing health
plans offered by various organisations.

Question 1:

Particulars Frequency

Yes, Organisation pays entire cost of health coverage for the employee 28

Yes, Organization and employees share cost of coverage 31

No, the employees pay the entire cost of their health coverage 32

30.77

35.16 64.83516484

34.07

No, the employees pay the entire cost of their health coverage
Yes, Organisation pays entire cost of health coverage for the employee
Yes,Organization and employees share cost of coverage

Hence, this shows that majority of the respondents do get health plans/packages under their
pay structures which means organisations consider it beneficial. Additionally, there is a
possibility that the firm covers only a fixed part of the health expenses as opposed to the entire
bill.

Statement 1 (DS table) The objective of this statement is to determine the impact of a
preliminary health insurance policy on the employee psychology and job satisfaction. The
collected statistics show that majority of the population “agrees” on the above statement and
hence a defined health insurance policy boosts job satisfaction

2. PAID LEAVES:

Out of the population, more than 50% of the employees are subject to Paid leaves under their
pay structures.
Paid Leaves include:
o Casual Leaves,
o Sick leaves,
o Recreational leaves
We wish to study the significance of each. Out of the entire population more than 50% of the
employees are subject to paid leaves under their pay structures, as interpreted from the data
furnished below.

Are you entitled to paid

leaves?

Yes 59

No 32

Using DS table

Statement 2: This is done to establish a direct relation between no of annual leaves and the
attitude of the employees and their performance. The statistical analysis of the data shows
that majority of the employees agree that they are positively impacted and are relaxed due to
annual leaves

Statement 3: This statement reveals the addition to the satisfaction of employees due to sick
leaves provided to them. The statistics show that majority of the employees feel much more
satisfied if they receive sick leaves as compared to if they wouldn’t have been given sick leaves.

Statement 4: The above statement is used to judge till what extent maternity leaves are
significant for married female employees. In addition to this, statistics show that majority of
the employees believe that female employee satisfaction is more in firms which have maternity
plans in place.
Statement 5: The objective of this statements is to define a correlation between employee
satisfaction and parental leaves. Analysis of statistics show that majority of the employees
“Agree” that parental leave has a positive impact on boosting job satisfaction.

3. Flexible Working Hours

It has been long discussed whether providing flexibility in work hours directly improve job
satisfaction, considering that it doesn’t impact employee satisfaction.

Using DS table

Statement 1: This statement is used to analyse if flexible working hours can increase employee
satisfaction and thus the retention rate. However, most of the employees “Do not Agree” with
this statement. Hence, it rather has an inverse impact or no impact at all

Statement 2: In accordance with the above statement, this is used with the objective to define
if there is a positive impact of flexibility of hours on employee motivation. Statistics show that
this is not true.

Hence, it can be concluded that flexible working hours is not much of a strong force in effecting
employee satisfaction.

4. Job Security

Statement 1: The objective of this particular statement is to identify if job security is one of the
prime factors which people consider before joining. Majority of the employees support this
idea and hence job security is one of the prime reasons

Statement 2: To identify the longevity of job security as a factor effecting job satisfaction, we
use this statement. The statistics suggest that employees “Agree” that after a certain level job
security is one of the major drivers

Hence, this leads to the conclusion that job security ensures greater motivation to employees
and thus contributes to employee satisfaction in the long term
 5. Job Enrichment
Statement 1: Majority of the employees accept that the current benefits being provided to
them are sufficient which is also why the companies have been successful in retaining them

Statement 2: This is done to determine if authority contributes to the motivation and

satisfaction of an individual employee. Majority of the employees are satisfied with the
authority they have at their job position.

As a concluding study, the employees ranked the given variables as follows:

These ranks are majorly

in accordance with our
previously concluded
results specifically on
Health and Job Security.
With increase in salary
getting the highest ranks,
we can conclude that
there is a high
preference towards
monetary benefits.

For further understanding, we study the numerous forms of appreciation and recognition
techniques. This is done on the basis of the ranks provided by the respondents. The major types
identified are as follows:
o Acknowledging in front of colleagues
o Employee of the month
o One to One Verbal praise
o Work Anniversaries for days when something is achieved

Their average ranks are represented in the graph below

 Acknowledging in
front of colleagues

1.94
Work Anniversaries
for days when Employee of the
something is 3.33 2.11 month
achieved
2.61

One to One Verbal

praise

This shows that acknowledgement in front of colleagues, followed by Employee of the

month are the two most satisfactory forms of appreciation and recognition. Hence, the
organisations should focus on adding credibility to such forms of motivation over direct
benefits which come at the cost of the company too.
Descriptive Statistics
Mean Std. Deviation Analysis N
I am completely satisfied
with the health benefits
2.09 .890 91
that I am provided against
my job description
Job satisfaction increases
if the employee is granted
2.12 .867 91
a proper health insurance
facility
Because of annual leaves,
employees get time to
1.53 .621 91
relax and it positively
affects their perfromance
Employees who get paid
sick leave tend to be more
satisfied than the 1.48 .565 91
employees who do not
get the sick leaves
Female employees prefer
working in a firm where
1.46 .602 91
they are provided with
Maternity leaves
Parental leave has a
positive impact on
1.37 .661 91
employees' job
satisfaction
Flexible working
arrangements help
2.87 1.249 91
employees organise their
work in a better way
Flexible working hours
ensures higher retention 2.86 1.111 91
rate
There is a positive impact
of flexibility of working on 2.84 1.195 91
employees' motivation
Do you feel that the
current benefits you are
1.71 .563 91
entitled to are sufficient
for you?
Do you feel that the
1.75 .607 91
current level of authority
 you have is sufficient for
your position?
Do you feel that you are
given sufficient platform 1.82 .529 91
to take initiative?

Factor Analysis:

Factor analysis is used to find factors among observed variables. In other words, if the data contains
many variables, one can use factor analysis to reduce the number of variables. Factor analysis groups
variables with similar characteristics together. With factor analysis, one can produce a small number of
factors from a large number of variables which is capable of explaining the observed variance in the
larger number of variables.

Algebraically: The factor analysis model can be written algebraically as follows:

If you have p variables X1, X2, . . . , Xp measured on a sample of n subjects, then variable i can be written
as a linear combination of m factors F1, F2, . . . , Fm where, as explained above m < p.

Thus,

Xi = ai1F1 + ai2F2 + . . . + aimFm + ei

where the ais are the factor loadings (or scores) for variable i and ei is the part of variable Xi that cannot
be ’explained’ by the factors.

1. KMO and Bartlett’s Test of Sphericity: The KMO measures the sampling adequacy which should
be greater than 0.5 for a satisfactory factor analysis to proceed. Based on the table below, the
KMO value is 0.577 and we’re good to proceed.

Bartlett's test is another indication of the strength of the relationship among variables. This
tests the null hypothesis that the correlation matrix is an identity matrix. An identity matrix is a
matrix in which all of the diagonal elements are 1 and all off diagonal elements are 0. We want
to reject this null hypothesis. From the table below, we see the Bartlett’s test of sphericity is
significant, that is, p value (0.003) < alpha (0.05). Hence, we reject the null hypothesis. This
means the variables are significantly correlated.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .577
Approx. Chi-Square 117.540
Bartlett's Test of
df 78
Sphericity
Sig. .003

2. Communalities: The next item from the output is a table of communalities which shows how
much of the variance in the variables has been accounted for by the extracted factors. For
example, for the statement “Job satisfaction increases if the employee is granted a proper
health insurance facility”, the value is 0.714, meaning that 71.4% of the variance in this variable
is explained by the extracted factor. This value should ideally be more than 0.5. However minor
deviations are permitted. Looking at the table below, we proceed further with these variables
in our analysis.

Communalities
Initial Extraction
I am completely satisfied with
the health benefits that I am
1.000 .728
provided against my job
description
Job satisfaction increases if the
employee is granted a proper 1.000 .679
health insurance facility
Because of annual leaves,
employees get time to relax and
1.000 .897
it positively affects their
perfromance
Employees who get paid sick
leave tend to be more satisfied
1.000 .781
than the employees who do not
get the sick leaves
Female employees prefer
working in a firm where they are 1.000 .657
provided with Maternity leaves
Parental leave has a positive
impact on employees' job 1.000 .732
satisfaction
Flexible working arrangements
help employees organise their 1.000 .863
work in a better way
Flexible working hours ensures
1.000 .738
higher retention rate
There is a positive impact of
flexibility of working on 1.000 .678
employees' motivation
Do you feel that the current
benefits you are entitled to are 1.000 .749
sufficient for you?
 Do you feel that the current level
of authority you have is 1.000 .842
sufficient for your position?
Do you feel that you are given
sufficient platform to take 1.000 .708
initiative?
Extraction Method: Principal Component Analysis.

3. Total Variance explained: The next item shows all the factors extractable from the analysis along
with their Eigenvalues, the percent of variance attributable to each factor, and the cumulative
variance of the factor and the previous factors.

According to the Kaiser Criterion, Eigenvalues is a good criterion for determining a factor. If
Eigenvalues is greater than one, we should consider that a factor and if Eigenvalues is less than
one, then we should not consider that a factor. According to the variance extraction rule, it
should be more than 0.7.If variance is less than 0.7, then we should not consider that a factor.
Eigenvalues is also called characteristic roots. Eigenvalues shows variance explained by that
particular factor out of the total variance. From the commonality column, we can know how
much variance is explained by the first factor out of the total variance. For example, if our first
factor explains 68% variance out of the total, this means that 32% variance will be explained by
the other factor.

Total Variance Explained

Compone Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
nt Total % of Cumulative Total % of Cumulative Total % of Cumulative
Variance % Variance % Variance %
1 5.821 33.658 33.658 5.821 33.658 33.658 4.899 28.780 28.78
2 3.566 18.207 51.865 3.566 18.207 51.865 2.952 17.791 46.571
3 1.942 11.367 63.232 1.942 11.367 63.232 2.478 13.905 60.476
4 1.489 8.788 72.020 1.489 8.788 72.020 2.192 12.487 72.963
Extraction Method: Principal Component Analysis.
4. Rotated Component Matrix:
Rotated
Component 1 2 3 4
Matrix
Employees who
get paid sick leave
tend to be more
satisfied than the .867
employees who do
not get the sick
leaves
Female employees
prefer working in a
firm where they .819
are provided with
Maternity leaves
Parental leave has
a positive impact
.725
on employees' job
satisfaction
Because of annual
leaves, employees
get time to relax
0.962
and it positively
affects their
performance
Do you feel that
the current
benefits you are .783
entitled to are
sufficient for you?
Do you feel that
you are given
.871
sufficient platform
to take initiative?
Do you feel that
the current level
.654
of authority you
have is sufficient?
Job satisfaction
increases if the
employee is
0.747
granted a proper
health insurance
facility
I am completely
satisfied with the 0.836
health benefits
 that I am provided
against my job
description
There is a positive
impact of
flexibility of
.721
working on
employees'
motivation
Flexible working
arrangements
help employees
0.859
organise their
work in a better
way
Flexible working
hours ensures
0.671
higher retention
rate

To calculate initial factor loadings, we make use of the Principal Component Method. As the
name suggests, this method uses the method used to carry out a principal components analysis.
PCA starts extracting the maximum variance and puts them into the first factor .After that, it
removes that variance explained by the first factors and then starts extracting maximum
variance for the second factor. This process goes to the last factor. However, the factors
obtained will not actually be the principal components (although the loadings for the kth factor
will be proportional to the coefficients of the kth principal component).
The idea of rotation is to reduce the number factors on which the variables under investigation
have high loadings. Rotation does not actually change anything but makes the interpretation
of the analysis easier.

In the table above, we see that the variables of health benefits are loaded onto factor 3, the
variables of paid leaves are loaded onto factor 1, the variables of flexible working hours are
loaded on factor 4 and variables of satisfaction are loaded on factor 2.

4 questions loaded on paid leaves, 3 on job satisfaction, 2 on health benefits and 3 on flexible
working hours.

Regression Analysis
Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
(Constant) 3.187E-16 .068 .000 .000
HPB .000 .068 .046 .000 .000
1
PL .000 .068 .087 .000 .000
FWH .000 .068 .010 .000 .000
a. Dependent Variable: Job satisfaction increases if the employee is granted a proper health insurance
facility

After the computation of factor scores, linear regression has been used to analyse the relationship
between job satisfaction (dependent variable) and independent variables like health benefits, paid
leaves, flexible working hours, and job security. The analysis has been carried out using SPSS and the
hypotheses formulated for the same were:

A. H0: There is no significant relationship between health benefits and job satisfaction.
H1: There is a significant relationship between health benefits and job satisfaction.

The table above shows that value of significance for the variable health benefits is 0.000 which
is lesser than alpha. Hence we reject the null hypothesis and we can say that health benefits
have positive impact on employee satisfaction.

B. H0: There is no significant relationship between paid leaves and job satisfaction.
H1: There is a significant relationship between paid leaves and job satisfaction.

The table above shows that value of significance for the variable paid leaves is 0.000 which is
lesser than alpha. Hence we reject the null hypothesis and we can say that paid leaves have
positive impact on employee satisfaction.

C. H0: There is no significant relationship between flexible working hours and job satisfaction.
H1: There is a significant relationship between flexible working hours and job satisfaction.

The table above shows that value of significance for the variable flexible working hours is 0.000
which is lesser than alpha. Hence we reject the null hypothesis and we can say that flexible
working hours have positive impact on employee satisfaction.

The regression equation used is:

Yi = α + β1X1 + β2X2 + β3X3

Where,

Yi is the dependent variable (job satisfaction)

α is the constant

X1, X2, X3 are the independent variables

β1, β2, β3 are respective coefficients of independent variables

The significance level is taken to be 5 per cent and p values computed after running regression are
compared with the significance level so as to determine whether or not to reject the null hypothesis in
each of the cases A, B and C.

ANOVAa
Model Sum of df Mean Square F Sig.
Squares
Regression .000 3 .000 .000 1.000b
1 Residual 188.000 87 1.015
Total 188.000 90
a. Dependent Variable: EMP_SAT
b. Predictors: (Constant), HB, PL, FWH

It is found that the utilized model in the analysis is appropriate since the needed esteem value confirms
that the research has been conducted on substantial grounds.

Conclusion:

a) Paid leaves appears the most important type of fringe benefit when it comes to level of satisfaction
of employees. It has a highly positive impact on employee satisfaction, so it is recommended that
recreation leaves must be pursued and offered in the kind of Casual leave, Sick leave, Annual Leave or
Maternity leave. The more employees have paid time off, the more they are relaxed and less-distracted
to their personal responsibilities over their professional lives.
b) Secondly, Health protection benefits are also an important fringe benefit and bring high level of
satisfaction in the employees, and it is observed to be an important and preferred incentive that an
employer can offer. Hence, the companies and organizations must adopt the policies and programs
that support and encourage the fact that health protection benefit must be provided to the employees.
It helps in retaining high potential employees.

c) Thirdly, Flexible Working Hours has a slighter impact on satisfaction of employees as compared to
other fringe benefits since it helps them arrange their work in easy main lenient schedule without
compromising on the output. Firms and organizations may adopt a policy about flexible working
arrangements so that the employees are willing to work for a long time devotedly.
d) Through this study, it has been analysed that a relationship exists between non –monetary benefits
and employee job satisfaction. Fringe benefits either they be of non –monetary in nature, possess a
great impact on employees and their satisfaction level.

Human Resource practices have been enhanced in many ways; the practices that are pursued today in
human resources were never considered in the past. However, the employers today are in continuous
search of loyal and dedicated employees, who can work and participate in betterment of the
organization, this study analysis the relationship of Fringe Benefits and Employee Job Satisfaction, along
with its key dimensions, Health Protection Benefits, Overtime, Recreation Leaves, and Flexible Working
Hours. The results and interpretation of this research shows and confirms that a relationship exists
between fringe and employees’ job satisfaction. Employees who are provided the fringe benefits are
more likely to last in an organization for a long time. However, employees expect more fringe benefits
offerings to compensate their work with benefits and rewards. Providing Fringe benefits proved to be
a vital and important policy for the organization since the employees have work, health protection
plans, recreation leaves such as annual leave, sick leave and maternity leave, and overtime facility.
Fringe benefits are essential for any company because it directly and positively affects the employee
satisfaction, the more employee is satisfies with his work and offerings, the more they tend to be loyal,
dedicated, compassionate and profitable for the firm.
References

 March 2019: The impact of fringe benefits on employee performance: A study of Nasco
Group, Jos plateau state Factors Influencing the Growth, Performance and
Development of Small Plastics Manufacturing Firms (SPMFs) in Nigeria: Implications for
Policy
https://www.researchgate.net/publication/331586595_Impact_of_Fringe_Benefits_o
n_Employee_Performance_A_Study_of_Nasco_Group_Jos_Plateau_State

 Fringe benefits effects on employee productivity in the public sector (a case of state
department of water, Nairobi county, Kenya) by Helen n. Kamau
d53/cty/pt/23327/2011
https://pdfs.semanticscholar.org/74fd/a4d10d4cbeebf71eb33d43bf78ff564a97de.pdf

 November 2010: A comparative study to determine the impact of fringe benefits on

job satisfaction and engagement by A. STEYN
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.913.3727&rep=rep1&type
=pdf

 Jansen, N. W., Mohren, D. C., van Amelsvoort, L. G., Janssen, N., & Kant, I. (2010).
Changes in working time arrangements over time as a consequence of work-family
conflict. Chronobiology international, 27(5), 1045-1061.

 Naithani, D. (2009). Overview of work-life balance discourse and its relevance in current
economic scenario.

 Raja, U., Sheikh, R. A., Abbas, M., & Bouckenooghe, D. (2018). Do procedures really
matter when rewards are more important? A Pakistani perspective on the effects of
distributive and procedural justice on employee behaviors. Revue Européenne de
Psychologie Appliquée, 68(2), 79-88.

 Sharma, K., & Jaiswal, N. (2018). A Study on Employees Attitude towards Fringe
Benefits. International Journal of Engineering and Management Research (IJEMR), 8(2),
176-180.

 25 March 2014: The direct and indirect impact of employee benefits on firm
performance in China by Zhaohong Lin https://doi.org/10.1111/1744-7941.12037

 The effects of employee benefits on the performance of employees Published by

Melisa Santos
https://www.projecttopics.org/the-effects-of-employee-benefits-on-the-
performance-of-employees.html