Benefits can be defined as the indirect monetary and non monetary payments that are given by the companies to their employees in order to enhance their motivation and to retain them for a longer term. These benefits may involve life insurance and health plans, paid leaves, retirement funds and child care assistance etc. These benefits provide a sense of comfort and satisfaction to the employees. Employees those are being offered benefits by the company feel that the company cares about them and they are on the priority list for the company.
Provision of benefits develops loyalty among the employees for the employer. Employees start to have feeling that when the company is doing so much for them then in return they should also serve the company with due diligence. Before figuring out an ideal benefit package for the employees the employer must answer a few questions like what benefits should be offered in the package, how should the benefits be financed, who should be benefited from the package, how to convey about benefits to the employees and whether to give choice to the employees to choose benefits etc.
These questions will help employer determine what he should include in the benefit package
Need essay sample on "Negotiated Benefits"? We will write a custom essay sample specifically for you for only $ 13.90/page
Unemployment insurance means providing benefit to an employee if he is not able to work with no fault of his own, it provides short term benefits to such employees. The company is not liable to pay unemployment insurance to every employee that gets terminated but to only those who are unable to work through no fault of their own. Paid vacations mean giving employees paid holidays. The number of paid holidays varies from employer to employer. Generally, it ranges around 12 days per year. The number of paid holidays may also depend upon the years employee has contributed in service.
Sick leave means that paying the employee for the days in which he was unable to work because of illness. This benefit does not mean that employee can have as many number of sick leaves as he wants, it is limited to a certain number of days. Again it depends on the company’s policy as to how many days does it allow its employees to have sick leave. Parental leave is given to women who get pregnant during the course of their job. They are paid for days when they are unable to come to job because of pregnancy.
Men are also given parental leave in case they are single parent and want to take care of their infant. An educational subsidy is a kind of benefit given to those employees who want to continue their education. It is up to the employer whether he wants to finance the overall or partial educational expense of the employee. Severance pay is a onetime payment that an employer made to his employee when terminating him. Severance pay is commonly paid by the employer when dismissing employees because of downsizing.
Pension plans are plans according to which employees are paid a fixed sum of money upon retirement or when they are no more able to work. Pension plans are a way to show appreciation from company’s side for employee’s loyalty and companionship through their whole term. We all know the fact that majority of employees today are single parents. So it becomes challenging for them to cope with both work and their babies. In order to facilitate these employees some of the employers provide subsidized child care facilities.
The employees have to pay a minimal amount of fee; the rest fee is paid by the employer. Elder care is pretty much similar to child care. Elder care is also essential as elders also need a lot of attention and care. So in order to give employees peace of mind, employers provide them with the facility of subsidized elder care (Dessler, 2007). After discussing all the benefits with you, I think the benefits that would make up an attractive employee benefit package would be sick leave, paid vacations, pension plans, educational subsidies and subsidized child care.
These benefits are kind of basic benefits that every company should give to his/her employees. These benefits may add up a little cost in employer’s overall income statement but it will positively affect the overall image of the company. Employees are even willing to do job at a lower salary if they are offered attractive benefit package. All in all, an attractive employee benefit package is ultimately going to help the company. References Dessler, G. (2007). Human Resource Management. New Jersey: Prentice Hall