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FRINGE BENEFITS ON COMPENSATION MANAGEMENT
INTRODUCTION ON COMPENSATION
• Human Resource is the most vital resource for any organization.
• Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards.
• The good compensation will also serve the need for attracting and retaining the best employees. .
FRINGE BENEFITS…..
• Is defined as any privilege, service, facility or amenity, provided to employees
• Can also be a reimbursement for any purpose .
• Can be a free or concessional ticket for private journeys of employees and family members
• Need not be directly connected with the employees productive effort, performance, service or sacrifice
FEATURES OF FRINGE BENEFITS
• Different from regular wages
• Useful but avoidable expenditure
• Not directly linked with efforts
• Beneficial to all employees
• Voluntary in character
OBJECTIVES OF FRINGE BENEFITS
• To supplement direct remuneration
• Employees prefer fringe benefits
• To retain competent employees
• To develop good corporate image
• To raise employees morale
• To motivate employees
TYPES OF FRINGE BENEFITS INCLUDES
• Payment for time out work by employees
• Employment security , health protection
• Legally required payments
• Miscellaneous benefits
• Old age retirement
FRINGE BENEFIT PLANS
• Are of three types that includes : Modular plans Core plus plans Flexible spending plans
• Comprises of 40% of employee’s salary
FRINGE BENEFIT TAX
• Is a tax levied on fringe benefits provided to the employees
• Is levied from the employees when certain conditions are met
• Is a tax levied in addition to the cash salary paid
• Includes Provision of employees transportation to work
Approval retirement plans
Employee stock option plans
ADVANTAGES OF FRINGE BENEFITS ( 1 of 2)
For employees include :
•Support employee remuneration
•Raise employee efficiency and productivity
•Reduce employee fatigue
•Raise employee morale
ADVANTAGES OF FRINGE BENEFITS ( 2 of 2)
For employer include:
• Improves efficiency and productivity
•Companies can keep their key employees
• Savings with quality coverage
• Provides high risk coverage at low cost easing the company’s financial burden
DISADVANTAGES OF FRINGE BENEFITS
• More costly for small employers
• Increase administrative cost of organization
• Creates bad image for an organization if fails to pay it
FRINGE BENEFITS BY HCL
• Health checkup once in a year
• Facility for career development
• Transportation benefit
• Flight facility
• Claim and voucher for parents treatment
• HCL colony less than market price
CONCLUSION ON FRINGE BENEFITS
Thus on the whole fringe benefits Is a privilege, service, facility or amenity,
provided to employees Helps to develop corporate image Increases efficiency and productivity among
employees Helps the organization to retain its key employees Acts as a security for both employers and employees