Chapter 13

Managing Employee Benefits and Services

Human Resource Management, 5E

Learning Objectives
Understand the nature of employee benefits and their Importance Identify different benefits Identify the principles Describe the steps in administration Identify the problems in administration

Human Resource Management, 5E

Examples of Fringes

Human Resource Management, 5E

Examples of Fringes (contd..)

Human Resource Management, 5E

Types of Non-monetary Rewards

Benefits and Services Treats Free lunches Festival bashes Coffee breaks Picnics Dinner with boss Dinner for the family Birthday treats Knick-Knacks Desk accessories Company watches Tie-pins, brooches Diaries/Planners Calendars Wallets T-shirts Awards Trophies Plaques Citations Certificates Scrolls Letter of appreciation

Office Environment Redecoration Office with a window Piped music Flexible hours

Social Acknowledgement Informal recognition Recognition at office gettogetherness Friendly greetings, smiles, e-mail Solicitation of advice, suggestions Membership or recreation clubs Use of company facilities for personal projects

Tokens Movie tickets Vacation trips Coupons redeemable at stores Early time-offs Anniversary, dating and birthday allowance/presents

On the Job More responsibilities Job rotation Special assignments Training Representing the company at public fora

Human Resource Management, 5E

Administration of Fringe Benefits

Environment Establish Benefit Objectives

Assess Environmental Factors

Access Competitiveness

Communicate Benefit Information

Control Benefit Costs and Evaluation

Human Resource Management, 5E

Guidelines to Make Benefits More Meaningful

Fringe benefit programmes should be looked at as a worthwhile corporate instrument in HRM. Future policy planning in this area will have to keep in view some fresh reference points. Non-unionisation and skills shortage are no more relevant for policy considerations. Any meaningful package of benefits must reflect some perspective planning. Inflexibility brings stagnation. Separate programmes directly beneficial to workers from those that are directed towards community welfare. Clubbing them together adds to their cost. This may not be liked by workers.
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Guidelines (contd..)
It is advisable not to have a facility rather than neglecting it in its administration. Poor internal communication hurts the programme in at least three ways: (i) more money is spent for officers welfare; (ii) excess money spent on corporate image building at the cost of more bonus; (iii) priority to officers children in admissions to schools. Therefore, make the internal communication system effective. Devise new ways to involve workers and their representatives at all levels of planning and implementation.
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Reality Check
Pick up five well known companies in your city/town. Find out the benefits and services offered by them to their employees. Observe commonalities and differences among them.

Human Resource Management, 5E