Types Of Fringe Benefits Business Essay Example

retiring suites jobs for employee's children.
The peripheral benefits are grouped into the following categories:

• Extra Pay for Time Worked: Benefits such as premium wage, incentive fillip, displacement premium, old age insurance, net income sharing,
  unemployment compensation Christmas fillip Diwali or Pooja fillip nutrient cost subsidy housing subsidy and recreation fall under this category.
• Payment for Time Not worked:This category includes sick leave with wage holiday wage paid rest and alleviation clip (time off) paid lunch breaks grudge clip(personal time off)
  bargaining time (time spent negotiating) travel time etc.

Retrenchment Compensation:

The Industrial Disputes Act of 1947 mandates the payment of compensation in cases of lay-off and retrenchment. Non-seasonal industrial establishments employing 50 or more workers must provide one-month notice or one-month rewards to all laid-off employees who have completed one year of continuous service.The calculation of compensation is determined by a rate of 15 days' pay for every year of service, with a maximum limit of 45 days' pay per year. Even in the event of business closure, workers will still be entitled to receive this compensation. It is essential to establish measures that ensure the safety and security of employees and their families, promoting their overall well-being.

Ensuring employees are verified in their occupations fosters job security, while a reliable and uninterrupted salary enhances overall life security. Moreover, prioritizing employee safety and health shields them from accidents and hazardous working conditions, preserving their ability to work effectively. In India, the Factories Act of 1948 mandates specific criteria for working conditions including cleanliness, waste disposal, ventilation, temperature regulation, prevention of dust and smoke, artificial humidification control, avoidance of overcrowding, adequate lighting provisions, access to drinking water facilities, and provision of toilets.

Commissariats associating

to safety steps include the fence of machinery, work on or close machinery in gesture, employment of immature individuals on unsafe machines, striking cogwheel and devices for cutting off power, self-activating machines, easing of new machinery, probation of employment of adult females and kids near cotton openers, hoists and lifts, raising machines, ironss ropes and raising tackles, go arounding machinery, force per unit area works, floors, inordinate weights, protection of eyes, safeguards against unsafe exhausts, explosive or inflammable dust, gas etc. Precautions in instance of fire, power to necessitate specifications of faulty parts of trial of stableness, safety of edifices and machinery etc.

Lay-off Compensation:

In instance of lay-off, employees are entitled to lay-off compensation at the rate to 50 % of the sum of the basic pay and costliness allowance for the period of their lay-off except for hebdomadal vacations. Lay-off compensation can usually be paid up to 45 yearss in a year.A

Objectives of Fringe Benefits

The status point of employers is that periphery benefits form an of import portion of employee inducements to obtain their trueness and retaining them.

The main goals of fringe benefits are to boost employee morale, create good industrial relations, provide a quality work environment and work-life balance, motivate employees by fulfilling their unmet needs, ensure employee health and safety, provide security against social hazards such as old age and pregnancy benefits, comply with various laws related to fringe benefits, foster a sense of belongingness among employees to retain them (hence the term "golden handcuffs"), and promote employee welfare through recreational facilities.

There is a need for expanding benefits to employees due to the attractiveness of fringe benefits in negotiations when large pay increases

are not feasible for employers. Rising prices and cost of living also contribute to the continuous demand for additional employee benefits. The recognition that fringe benefits are non-taxable wages has been a significant incentive for their expansion.

• Organisations have developed more extensive benefits plans for their employees, increasing pressure on competing organisations to match these benefits in order to attract and retain employees.
• Rapid industrialisation, heavy urbanisation, and the growth of a capitalist economic system have made it difficult for most employees to shield themselves from the negative effects of these developments. As workers are responsible for production, employers should take on some responsibility for meeting their employees' needs. Consequently, employers adopted certain benefits-and-services plans.

1. The growth and influence of trade unions greatly impacted the growth of company benefits and services.
2. The increasing amount of labor legislation, particularly social security legislation, made it necessary for employers to share the cost of old age, survivor, and disability benefits with their employees.
3. Labor shortages and competition for qualified personnel led to the creation, development, and implementation of various compensation programs.

• The direction has acknowledged its responsibility towards its employees and decided that the benefits of increased productivity resulting from industrialization should be shared with the employees who contribute to it. This is to ensure their protection against unemployment, illness, injury,and old age.

Company benefits-and-services plans are strategies implemented by managers to ensure the well-being of employees.

Lenient policies for various situations

Lenient policies for various situations pertain to being understanding when it comes to unexplained absences and unsatisfactory work habits. Employers typically provide flexibility in terms of work schedules, including lunch breaks, round-the-clock working hours, vacations, leaves of absence, sick days, personal leave, jury duty

leave, and accommodations during severe weather conditions. However, these broad forces policies and additional benefits sometimes pose challenges for the company such as legal issues related to productivity and high absenteeism rates. Some individuals exploit the system.

Where there is freedom, there is also the fear of crime. Employees take advantage of this freedom and the benefits offered to them, which leads to a lack of motivation. This misuse of benefits and flexible work policies ultimately causes a decrease in productivity and an increase in absenteeism. Instead of utilizing flexible work hours as intended, employees often manipulate their schedules, disregarding the designated working hours set by the company. Occasionally, certain aspects of organizational policies are written with good intentions, assuming that employees will act fairly in the best interest of the organization.

Although policies are created with good intentions, they may not always be followed with the proper attitude, which can hinder their effectiveness. This is evident in the provision of company assets to employees, such as laptops, company vehicles, and travel allowances. When guidelines are unclear, employees may interpret them in a manner that benefits them personally. Consequently, this behavior can greatly affect businesses when employees unexpectedly call in sick or come to work with a negative attitude and lack of motivation.

Both lower productivity and morale of colleagues and directors are impacted by a decrease. This decline in productivity and rise in absenteeism is not limited to low-pay, low-skilled hourly workers; executives also encounter similar challenges. Signs of poor motivation in the workforce include frequent absences, high turnover, lack of punctuality, increased waste, subpar output quality, and an increasing number of disciplinary problems. To tackle these

issues, management should prioritize enhancing the organizational climate.

To establish a culture of hard work, organizations can utilize positive and negative reinforcement. This involves implementing incentives such as a "worker of the month" program and enforcing penalties for excessive absenteeism or failure to meet productivity goals. It is crucial to use a combination of these strategies in order to create a challenging yet non-oppressive environment for employees. Regularly monitoring employee performance is essential to ensure they effectively fulfill their job responsibilities and do not exploit generous policies and fringe benefits. Furthermore, having a company-wide policy with zero tolerance towards any form of hostile verbal or physical behavior from any employee is also vital.

The company must clearly define its policy regarding employee behaviors, which includes instances of name-calling, shouting, tormenting others, and physical contact. Moreover, the company should establish a disciplinary procedure that is communicated to all employees upon their hiring. This procedure should encompass how to handle behavioral situations, specific guidelines for regulating and restricting certain behaviors, and identification of those responsible for enforcing these procedures and rules. Ensuring consistent application of policies to all employees is crucial. The policies should also align with the current needs of the company, be easily comprehensible, and fair and appropriate considering the behavior at hand. For example, solely sending an employee home for being five minutes late may not be reasonable.

Unethical behavior, such as theft, misuse of company funds, and falsification of company records, can lead to a suspension or immediate termination, depending on the situation.

Motivation and its Importance

Having a motivated workforce is essential for most businesses because it results in increased productivity, higher quality work output, and reduced

rates of absenteeism and employee turnover. The key factors that impact employee motivation include salary levels, job security, opportunities for advancement, assigned duties, working conditions, fringe benefits,
involvement in decision-making processes, and teamwork.

Theories of Motivation

There are two main theories of motivation: content theories and process theories. Content theories examine the underlying motivators by assessing the needs that must be fulfilled for employees to experience motivation.

Both extrinsic wages (e.g. wage) and intrinsic wages (e.g. acknowledgment and congratulations) satisfy the demand. The Classical (Fayol), Scientific (Taylor), Human Relations (Mayo), and Neo-Human Relations (Maslow, Herzberg, McGregor) schools of direction thought are all content theories.

Procedure theories focus on the thought-processes that influence workers' behavior rather than the requirements for achieving motivation. There are two such theories:

Equity theory:

This theory suggests that workers will desire a wage bundle, which includes their salary and fringe benefits, in exchange for their efforts. Motivation will only occur if the worker perceives their wage bundle as fair and equitable compared to what other workers receive.

Expectancy theory:

This theory states that workers will take action only if they reasonably expect that their work will lead to the desired outcome. If they believe they have the necessary abilities and skills to achieve the goal, they will exert high effort and be motivated.

Fiscal Methods

A business has various payment methods available, each with different effects on workforce motivation levels.

The chief methods are:
Piece-rate strategies.
This payment method involves the employee receiving a sum of money per unit (or per 'piece') that he produces. Thus, his wage is directly linked to his productivity level. However, it is possible that an employee may reduce the quality and workmanship per unit in order to increase his

earnings by producing more output within a given time period.
Time-rate ('flat rate') strategies.
This payment method involves the employee receiving a basic rate of wage per time period that he works (e.g. ?5 per hour, ?50 per day, ?400 per week).

The wage is not tied to the end product or productivity. If an employee works more than the agreed number of hours per week, they may be eligible for overtime payments, often at 'time and a half' (e.g. ?7.50 per hour instead of ?5 per hour).

Commission.

This is a common method of payment for salesmen (e.g. insurance, double-glazing, telesales). The employee receives a very small percentage (say 0.5%) of the value of the goods that they manage to sell in a period of time.

Net income sharing.

This strategy involves distributing a portion of the company's net income to each employee annually, effectively resulting in a yearly salary increase. Its purpose is to increase employee effort, motivation, and productivity, as their annual pay is directly linked to the profitability of the company. However, if the company generates low profits or incurs losses, it may negatively impact employee motivation.

Performance-related pay (PRP).

This approach entails providing individual employees with salary increases based on their achievement of certain targets during the previous year. It is commonly used for managerial and professional staff.

Share ownership.

Payment in many PLCs often includes 'share options' as a common form of compensation. This essentially means that each employee receives a portion of their monthly wage in the form of shares (usually at a discounted price). These shares serve as a profitable savings

plan for the employee, as they can be sold after a specified period of time. The intention behind this is to motivate employees to work harder and increase their efforts, since the value of the shares will increase as the company becomes more profitable, thereby resulting in higher capital gains. In addition to these various methods of payment, employees may also receive additional benefits or perks such as private health plans, pension schemes, subsidized meals, vacation and travel discounts, low-interest mortgages and loans, company cars, and discounts on company products. The combination of salary and fringe benefits is referred to as the compensation package.

Non-Financial Methods

There are various methods utilized by different directors to achieve a motivated and satisfied workforce, as there is no universal regulation for motivating employees. Some of these methods are:

• Authorization: A director empowers their subordinates by granting them a certain level of authority over their work. This allows the subordinates to have reasonable independence in decision-making and finding the best approach to solve a problem.
• Deputation.

This phenomenon happens when directors transmit an authorization level to their subsidiaries in the hierarchy. Job enrichment is a strategy to motivate employees by granting them additional responsibilities and opportunities to showcase their initiative. Job expansion entails increasing the number of tasks involved in a specific job in order to motivate employees and enhance their skill set. Works council.

This text discusses worker engagement, which involves regular discussions between directors and employees to improve the company's processes and procedures. Job rotation is also mentioned as a way to increase job variety and motivation. Additionally, team working is described as an alternative production technique to assembly-line

work, where there is a high division of labor.

Team working involves employees coming together to produce a product, with each employee specializing in specific tasks. Cell production exemplifies team working. Quality circles, on the other hand, are groups of workers that meet regularly to identify and address quality issues in production, explore alternative solutions, and recommend the management the most successful solution. Worker engagement refers to involving workers in the decision-making process, seeking their ideas and suggestions.

Worker-directors, who are workforce representatives in board meetings, are not very common in the UK. This is because employers often believe that they can slow down decision-making and leak confidential information to employees. Symptoms of poor motivation among employees include absenteeism, high labor turnover, poor timekeeping, waste, low quality output, and disciplinary issues.

When a workforce has low motivation, management should:

1. Ensure fair wage levels.
2. Cultivate a strong corporate culture and team spirit.
3. Offer recognition and acknowledgment for employee efforts and achievements.
4. Implement decision-making at lower levels of the organization.
5. Ensure effective communication and deliver relevant messages to the appropriate personnel.
6. Create more challenging jobs.