Meaning of Employee Benefits:

In addition to compensation in the form of wages and salaries, organisations

provide workers with various services and programmes known as employee
benefits. Previously these services and programmes were known as fringe benefits.
Now these have become part of compensation package hence the word fringe in
now not used and not appropriate even. Nowadays employee benefits are regarded
as an important tool to retain employees and to improve the bottom-line of the
organisation.

Benefit programmes play a vital role to maintaining an employee’s standard of

living when he suffers from health problem. The organisations that provide these
benefits to their employees have improved image of caring employer. These benefits
are the advantages that accrue to an employee apart from salary. They are not
related to performance. According to Cockman, “employee benefits are those
benefits which are supplied by an employer to or for the benefits of an employee,
and which are not in the form of wages, salaries and time rated payments.”

Types of Benefits and Services:

The following are the significant benefits and services available to the
employees:

1. Payment for Time not Worked:

Companies make payment for time not work such as payment for sick leave,
holidays, vocations, voting time, witness time, on the job time such as lunch break,
coffee break, reporting pay, rest period, payment for time spend for collective
bargaining.

2. Employee Security Payment:

These include payment made by the employer to employee’s pension, accident

insurance, saving plans for health, payment made under workmen’s compensation
Act. Disability benefits.

3. Payment for Rest Period:

At the workplace employees exert and hence they need to rest. So rest hour or
coffee break is provided to them to rest and get refreshed. This is provided to divert
the attention of the employee from the job. It soothes him mentally and physically.

4. Holidays and Vacations:

Several paid holidays are granted in every country. In India these include Republic
Day, Independence Day, Diwali, Id, Christmas, Mahavir Jayanti, Gandhi Jayanti,
Gurunanak Jayanti, Id-e-Miladunnabi, Chatrapati Shivaji Jayanti, Holi,
Rakshabandhan are some of the prominent holidays which are paid holidays. Some
paid vacations for a period of a fortnight or a month is provided to the employees.
The vacation provides employees to get refresh and enjoy time with their families
and return to work with renewed vigour and enthusiasm.

5. Sick Leave:

When an employee suffers from some illness he is provided sick leave or medical
leave with pay.

6. Severance Pay:

In case of termination of the job by the employer a severance pay is made to the
employee. This is the onetime payment made to him.

7. Study Leave:

This is also known as leave of absence which is meant for further study by the
employee. This is the sanctioned paid leave given to the selected employees.

8. Compensation Benefits:

These benefits are given to those employees who cannot work owing to occupational
injury. Employers contribute funds under the Workmen’s Compensation Act.

9. Insurance Benefits:

Employers offer life, health and accident insurance programmes to their employees.
This scheme is for individual or the group.

10. Bonus and Awards:

Bonus on festive occasions is paid to the employees. Attendance bonus or for
quality workmanship bonus is paid. Safety awards, profit sharing, good service
bonus are paid to the employees.

Employee Services:

Certain services are provided to the employees by the organizations in addition to

the above fringe benefits.

The services are:

1. Canteen:

Through canteens the lunch, snacks and other food are provided at subsides rate.

2. Transportation:

This facility is provided to the employees and their children for taking them to
schools/colleges.

3. Housing Accommodation:

Housing accommodation in provided to the employees at subsidized rate having all

the facilities in the colonies such as, play ground, swimming pools, recreation halls,
schools, garden, clubs etc. This creates excellent living and comfort.

4. Financial and other Services:

Loans are sponsored by the organisation, purchasing of goods needed by the

employees is done through departmental stores.

5. Medical Aid:

Medical facilities are provided to the employees through clinics and hospitals.

6. Flextime:

Flextime is a scheme of working hours in the factory or office. Through this

scheme, a choice is given to the employee to choose his working hours according to
his comfort e.g.: the options are 7.00 am to 2.00 pm., 10.30 am to 5.30 pm., 3.00
p.m. to 11.00 a.m. The worker can opt for any time schedule for work.

Employees safety
Meaning and Importance:

Safety refers to the accidents, stated differently. It also refers to the protection of
workers from the danger of accidents. Employee safety and security refers to the
protection of workers from the dangers of industrial accidents.

An accident is an unplanned and uncontrolled event, which can be major or minor,

partial or total. In any case a worker gets disabled, it can affect the productivity.
So, an accident-free plant is expected from the employers.

Causes of Accidents:

There are three factors that contribute to accidents. These causes can be work-
related causes, unsafe acts by the employees, or chance occurrences. The work-
related factors can be defective equipment, inadequate safety devices, poor
housekeeping and absence of maintenance of machines, which can result in
accidents. Unsafe acts can be due to carelessness of the workers and use of unsafe
procedures.

The other causes can be due to bad working conditions, very long hours of work,
carelessness in handling materials and lack of training. All these accidents can
increase the cost of production directly or indirectly. Therefore, the management
should take enough care to reduce the accidents to the minimum.

Techniques for Improving Safety and Security of Employees:

1. Safety programmes:

This deals with prevention of accidents, minimization of losses, and damages to the
property and life of the employees. There are five principles for a safety programme.

a. Industrial accidents can take place due various reasons such as lack of good
leadership, lack of motivation from the management and insufficient safety
mechanisms. The root cause has to be traced out.

b. Identify the potential hazards and provide effective safety facilities.

c. The top management should have safety policies, which should be continuously
monitored.

d. The accountability of the personnel should be determined for the safety

performances.
e. Thorough training and education regarding the safety measures and devices.

2. Safety organization:

An organization can set up a safety committee and a safety director for deciding
various safety programmes to be conducted in an organization. A safety programme
must be developed to educate and train the employees to avoid mechanical as well
as personal hazards.

3. Safety engineering:

The important function of safety engineering is to eliminate all the possible risks
due to processes, handling of machines or equipment’s. Safety equipment such as
glasses, gas masks, and gloves should be provided free for protection.

4. Safety education and training:

Safety education for all levels of management and for every employee is a must. The
main objective of safety education is two-fold: first, to develop safety consciousness
among the personnel and second, to ensure safe performance by developing the
skills of the employees. Training gives immediate knowledge that can help the
employees understand the hidden hazards, the knowledge to prevent accidents,
safe handling of materials, and good housekeeping.

5. Safety contests:

Some organizations encourage safety competitions among their departments to

emphasize the importance of safety.

6. Disciplinary action:

An organization can take action against any employee in case they are found guilty
of any violations. The safety programme and safety policy is based on the well-being
of employees, and it stresses the fact that human resources are the most valuable
assets, and their safety is the greatest responsibility.

Need for Safety:

There are certain benefits enjoyed by the organization as well as the employees
when the plants become accident free. International Labour Organization (ILO)
observes 28 April as the World Safety and Health Day just to give significance for
safety at work.
Benefits to the Organization:

1. There is substantial savings in costs.

2. This can reduce the wastages to the minimum.

3. Safety can also ensure optimum utilization of resources.

4. All the above reasons can contribute to improvements in productivity.

5. Financial losses that accompany accidents can be avoided.

6. The employees are less worried about their safety, which can improve their
efficiency.

7. The penalty for non-compliance of safety measures can be avoided.

Benefits to the Employee:

1. Increased earnings of a company improve the earnings of a worker.

2. This can boost up the morale of the employees.

3. The workers are less worried about their safety.