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 employees 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 companys 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