Employee Benefits

Employee Benefits

Benefits are forms of value, other than payment, that are provided to the employee in return for their contribution to the organization, The most common employee benefits are medical, disability, life insurance; retirement benefits; paid time off; and Other employee benefits includes housing, life, overtime , sick leave , vacation , social security , profit sharing and funding of education. List of employee benefits also vary from continent to continent depending upon their basic needs. The main purpose of employment is to insure life security by securing a position in a society. There are some types of employee benefits that are mandated by law, including minimum wage, overtime, leave under the Family Medical Leave Act, unemployment, and workers compensation and disability.

Employee Benefits are mainly categories into three, Flexible, voluntary and core benefits. Flexible benefits allows employees to sacrifice part of their pre-tax pay in exchange for a car, additional holiday, a shorter working week or other similar benefits, or give up benefits for additional cash remuneration. Voluntary employee Benefits is the name given to a collection of benefits that employees choose to opt-in for and pay for personally. Core employee benefits are benefits which all staff enjoys, such as holiday, sick pay and sometimes flexible hours. But all kind of benefits not distributed equally to all employees, benefits are circulated according to ranking, lower and medium ranked enjoy less benefits as compared to top positions.

The other way to categories employee benefits on the basses of their worth, most of the time we talk about employee benefits are considered just tangible , but the non tangible benefits like appreciation from boss , comfortable working environment etc. are also of great importance, fringe benefits doesn’t mean only tangible benefits must be provided, it means both should be considered. Employee benefits depends upon the kind of employment, vary grade to grade and organisations to organisation. Organisations offer benefits to employee according to their resources.

The Society for Human Resource Management (SHRM) released a report on 28^th June 2011, showing that 63 percent of HR professionals say the economic recession negatively affected their organization's employee benefit offerings "to some extent," over the past year. About a third said the recession didn't have any effect on their employee benefit packages, with only nine percent reporting it had a "large" affect on what they were able to keep providing to their employees.