HUMAN RESOURCE MANAGEMENT FRINGE BENEFITS

Contents:

What is Fringe Benefits? Principles of FB? With examples Types of FB? With examples

Important of FB?
Monitoring of FB?

WHAT IS FRINGE BENEFITS?

Most of the FB are not taxable income.

The employee can avail the FB such as health and insurance with less expenditur e.

FB are the additional benefits and services that are provided by a company to its employees in addition to their direct salary. fringe can be defined as the additional benefits and services that a company provides to its employees on the basis of the performance of their employees.

Benefits And Services must be provided to the employees Real life requirements Cost effective Requirements must be considered Employees should be well informed

Benefits

Example

Legally required payments Dependent and long term benefit Payment for time not worked Other Benefits

Old age, survivors and health insurance, Workers Compensation, Unemployment Pension Plan, Group life insurance, Group health insurance, Prepaid legal plans, Sick leave, Dental benefit, Maternity leave Vacations , Holidays, Voting pay allowance

Travel allowance, Company car and subsides, Child care facilities, Employee meal allowances, Moving expense

Types of fringe benefits

Fringe Benefit Can be two types One that can be measured in terms of money value. The another type of benefit are those that cannot be measured in terms of money value. Fringe benefits such as medical insurance and holiday pay that can be associated with money value are known as monetary benefits whereas benefits such as company service that cannot be associated with any money value, are known as non monetary benefits

Example of non monetary benefits

Benefits
Treats

Example
Free lunch, Coffee breaks, Picnics, Birthday Treats, Dinner for the family Company watches, Desk accessories, Wallets, T-shirts, Diaries and Planners

Knick- knacks

IMPORTANT FRINGE BENEFITS: PAYMENT

FOR THE TIME EMPLOYES HAVE NOT WORKED. BENEFIT. BENEFITS.

INSURANCE

COMPENSATION

PENSION

BENEFITS.

PAYMENT FOR THE TIME EMPLOYES HAVE NOT WORKED.

MOSTLY EVERY COMPANY PROVIDES THE PAYMENT FOR TIME NOT WORKED BENEFIT TO ITS EMPLOYEES. IT CAN BE TWO TYPE ,ON-JOB FREE TIMER PAYMENT AND OFF-THE JOB FREE TIME PAYMENT, IN ON-THE- JOB FREE TIME INCLUDES LUNCH PEROIDS, COFEE BREAKS,REST PERIOD,AND WHEREAS OFF-THE-JOB FREE TIME INCLUDES VACATIONS SICK LEAVES PUBLIC HOLIDAYS AND CASUAL.

INSURANCE BENEFITS:

INSURANCE BANIFIT ARE ALSO AN IMPOTANAT FRINGE BENEFIT FOR THE EMPLOYEES OF COMPANY. NOW A DAYEVERY COMPANY PROVIDES ITS EMPLOYEES THE FACILITY OF PURCHASING INSURANCE POLICIES AT PRICES WHICH IS MUCH LESS THAN THE COST THE EMPLOYEES HAVE TO PAY FOR IF THEY BUY INSURANCE THEMSELVES

Compensation benefits:

COMPANIES ARE PROVIDE COMPEMSATION BENEFIT TO ITS WORKERS AGAINST SOME DISABILITY OR INJURIES TO THEIR EMPLOYEES OR THEIR FAMILY MEMBERS

EMPLOYEES COLLECT MONEY FOR OR CONTRIBUTE FUND FOR ILL AND INJURIES EMPLOYEE

PENSION PLANS:

COMPANIES ALWAYS PROVIDES THE SUPPLEMENTARY INCOME OR PENSION TO ITS EMPLOYEES AFTER THEIR RETIREMENT. COMPANY PROVIDES BONUS TO ITS EMPOLYEES.

MONITORING FRINGE BENEFITS:Monitor the fringe benefits refers to ensure the 1. Proper implement of fringe benefits
2.

Fully utilized by the employees

Steps for monitor the fringe benefits:1.

Setting up benefit objectives

To ensure the proper implementation of fringe company need certain objectives Encouraging external competitiveness Enhancing cost effectiveness Fulfilling the need & preferences of each employee

Assessing environmental factors:

while monitoring the fringe benefits company needs to identify various internal & external factors that may affect the benefits.

External factor include government policies unions & economic factor

DETERMINING COMPETITIVENESS:while monitoring the fringe benefit, a company also need to assess the fringe benefits provided by its competitors to their employees. To monitor the competitors strategies of providing fringe benefits.

CONVEYING BENEFIT INFORMATION:The employees of a company must be informed about the different types of benefit programmes through different communication media such as booklets ,regular employee meeting ,brochures , slide presentation and also from calendars.

CONTROLLING BENEFIT COSTS AND EVALUATION :An important method of determining the usefulness of the fringe benefits is to ascertain that to which extent the nonmonetary fringe benefits are helpful to the employees.

THANK YOU