EMPLOYEE BENEFITS

Employee benefits comprise of preparations made by employers for their employees that upgrade the latter’s prosperity. They are provided in addition to pay and form important parts of the aggregate reward package. As a major aspect of aggregate compensation, they may be conceded or dependent such as a  pension scheme, insurance cover or sick pay or they may be immediate, for example, an organization company car or a loan. Employee benefits include holidays and leave arrangements, which are not entirely remuneration. Benefits are sometimes referred to dismissively as 'advantages' or 'incidental benefits’, but when they provide food for individual security or individual needs they could hardly be portrayed as fringe’. Flexible benefit schemes give employees a choice, within limits, of the type of benefits offered to them by their employers. (Armstrong and Taylor, 2014)

                    Source: www.study-aids.co.uk

Managing within an aggregate rewards structure doesn't imply that you have to totally change the way you design and deliver benefits. Managing within this structure provides focus by helping you recognize the projects that will empower you to retain and connect with your talent. Managing within this structure also resonates with employees, when packaged and communicated together; your aggregate rewards can separate you. (Kwon and Hein, 2012)

Employees need to be convinced that their employers are interested and focused on their welfare before they can draw out their all in the service of the employers and ensure the organizations success. To accomplish the expressed target management need to carefully consider what carefully might best suit the organization, the acknowledgment of such benefits by the employees, the total cost involved, the amount available for the provision of benefits and how the results will be evaluated. (Amah, 2010)

INTERNATIONAL PRACTICES

The employee benefits offering at The Economical Insurance Group (TEIG) has evolved significantly over the past several years. TEIG provided a traditional fixed benefit plan that gave the same coverage to all employees. (Hubbard and Singh, 2009)

Wegmans firm offers above-market pay rates, affordable health insurance, a full range of  employee  benefits. (Dessler, 2012)

CONCLUSION

Both mandatory and fringe benefits were having critical and positive relationship with organizational commitment and fringe benefits having higher relationship as compare with compare benefits. When employees received more fringe benefits, their organization responsibility has a tendency to be higher. Subsequently the employers should not only provide mandatory benefits as required by the law, but also provide and enhance the fringe benefits in order to strengthen the employees’ organizational commitment, motivation, productivity and job performance. (Ju et al, 2008)

REFERENCES

Amah, E. (2010) Human Resource Management, Port Harcourt: Amethyst Publishers.

Armstrong, M. and Taylor, S. (2014) Armstrong’s Handbook of Human Resource Management, 13^th edn. London: Kogan Page.

Dessler, G. (2014) Human Resource Management, 13^th edn. Boston: Pearson.

Hubbard, J. and Singh, P. (2012) 'The Evolution of Employee Benefits at the Economical Insurance Group', Compensation and Benefits Review, 41(6), pp. 27-35.

Ju, S., Y., Kong, L., K., Hussin, Z., H. and Jusoff, K. (2008) 'The Influence of Employee Benefits Towards Organizational Commitment', Asian Social Science, 4(8), pp. 147-150.

Kwon, J. and Hein, P. (2012) 'Employee Benefits in a Total Rewards Framework', Benefits Quarterly, 29(1), pp. 32-38.