What Are Employee Benefits
This usually refers to medical insurance, retirement plans, leave, ESOP etc. The benefits provided to an employee are very costly, hence the variety and choices of benefits keeps changing as per company revenue policies. Like an option of Flexible Benefits Plans (FBP). Benefits refer to money other than salary that is provided to staff in return for their services towards organization.
Benefits can be physical and elusive. Physical benefits include vacation pay, maternal pay, stock options, bonuses etc. Elusive benefits are indirect benefits like promotion, appreciation mail from a superior etc. Many organizations also call them Fringe Benefits which includes both kinds of benefits. Next comes who pays these benefits, majority of these are company paid except for a few of them. Like pension fund contribution where in it is partly paid by employer and also medical insurance.
Planning an employee benefit program is very intricate. Such programs may cover some common and uncommon benefits as per the sex, age etc. of an employee. First let us see some common benefits:
- Paid leave: this kind of leave may not be applicable to all kinds of employees. The firm may categorize certain employees for such kind of benefits. Most common would be for female employees who go on maternity leave.
- Health insurance: here the company may categorize the age of employees as a criteria for some health insurance plans.
- Paid sick leave: for example if an employee has a routine medical check up for some disorders that does not affect the process of work, he or she will be entitled for this benefit.
- Disability insurance: as the name suggests it is a benefit given to employees who have a certain disability physically but still can work towards the goals of an organization.
The above benefits also have a clause; it is paid only to full time employees who have served the organization for at least one year. There are certain uncommon benefits also which can be discussed like:
- Education program benefit: if an employee wants to pursue his education that would be a value addition to his work in the firm, the organization may help in reimbursing a certain amount of tuition fee.
- Straight deposit: the company provides an option of automatic deposit of Cheques to the employees account if they are paid through Cheques.
- Wellness benefits: the firm may encourage the employees to take active part in any wellness programs organized such as stress management programs, increase in overall productivity etc.
- Discount offers: the firm may give its employees discount coupons to buy products of the company at discount.