A Project Report on
A comparative study on awareness and utilization of employee
benefits
Submitted in fulfillment of the requirement for
Strategic Compensation Management
Of
Master of Business Administration
Submitted to Prof. R Swapna
By,
K.Shilpa (2018-2MBA-48)
Centre for Management Studies
NALSAR University of Law, Hyderabad
Justice City, Shameerpet– 500101
Introduction
Behind a successful company there are several factors which affect its activities and
performance. The human resources of a company largely depend on how the company is able to
respond to challenges of the market. Employers are recently trying to take care of their
employees much more than just rewarding them with a salary. They provide them a variety of
employee benefits with which they try to motivate them to perform better. The aim of the this
research is to understand effective utilization of the employee benefits. The survey has been
conducted amongst the employee’s of TCS and IBM .The survey highlights the comparitative
analysis in understanding the importance of benefits in each company.
ABOUT
IBM
IBM India Private Limited is the Indian subsidiary of IBM. It has facilities
in Bengaluru, Ahmedabad, Delhi, Kolkata, Mumbai, Chennai, Pune, Gurgaon, Noida, Bhubanes
hwar, Coimbatore, Visakhapatnam and Hyderabad.
Between 2003 and 2007, IBM's head count in India has grown by almost 800%, from 9,000 in
2003 to nearly 74,000 in 2007. Since 2006, IBM has been the multinational with the largest
number of employees in India. IBM is very secretive about the geographic distribution of its
employees. By most estimates, it has close to a third of its 430,000 employees (~ 140,000) in
India, and it likely has more employees there than in the US.
Key features:
Health Benefits Portfolio that provides strong support for your well-being and preventive
care,comprehensive coverage to meet a range of medical situations, and solid protection
against the cost of serious injury or illness.
Income Protection in case of serious illness, injury or death, including life insurance and
disability benefits.
Eligibility:
Employees are eligible for all applicable benefit programs, except the IBM Employees Stock
PurchasePlan, on the first day of employment. Health care coverage (medical, dental) is available
for employee, spouse or eligible domestic partner, eligible children and other eligible
dependents.
About Health, Life and Disability Benefits :
IBM provides a range of options, to design a program that meets your personal or
familycircumstances. Employees can enroll in benefits when they first join IBM.
MEDICAL INSURANCE /HEALTH INSURANCE
Health insurance offers a way to reduce such costs to more reasonable, affordable amounts. The
way it typically works is that the consumer pays an up front premium to a health
insurance company and that payment allows you to share "risk" with lots of other people
(enrollees) who are making similar payments.
GROUP LIFE INSURANCE
Group life insurance is a single contract for life insurance coverage that extends to a group of
people. By purchasing group life insurance policy coverage through an insurance provider on a
wholesale basis for its members, companies are able to secure costs for each individual employee
that are much lower than if they were to purchase an individual policy.
SHORT TERM DISABILITY
IBM’s Short-Term Disability (STD) Benefit Plan provides employee with salary continuation for
each day of absentism , due to illness or injury, up to a maximum of 8 weeks in a period of 12
consecutive months.
LONG TERM DISABILITY
IBM’s Long-Term Disability (LTD) Plan provides employee with important income protection if
you become sick or injured for an extended period of time. The plan offer the following options:
• No coverage
• 50% of pay before tax.
HEALTH CARE COVERAGE
When employee’s retire or leave from IBM, employees want to know how the company supports
their future health care needs,employee’s will be able to continue their coverage under IBM-
sponsored health benefits plan, at least for some period of time.
PAID TIME OFF
Paid time off (also known as PTO or personal time off) is compensated time away from work,
provided by an employer to employees for them to use as they see fit. PTO is often measured in
hours and classified for different types of absences like sickness, vacation time, and personal
time.
EMPLOYEE ASSISTANCE PROGRAMME
The IBM Employee Assistance Program (EAP) provides short-term counseling for a variety of
life events and everyday challenges including Work Stress; Family/Parenting Issues.
OPD
Out patient department is provided to employees of IBM,ie yearly 10k is provided to them and
free health check up camps are provided in the office premises.
MATERNITY LEAVE
Maternity leave can be extended beyond 6 months,as it purely depends upon on the employee
capability and retention of employee.
SHOPPING COUPONS
Shopping coupons are given based upon the performance of the employee.
CAB ALLOWANCE
Cab is provided for employees who work during night shifts and graveyard shifts.
SUDEXO COUPONS – Sudexo coupon is provided to the employee for a certain amount
worth which he/she could use.
TCS
Tata Consultancy Services Limited (TCS) is an Indian Multinational Information
Technology(IT)service and consulting company headquartered in Mumbai, Maharashtra, India.
It is a subsidiary of Tata Group and operates in 149 locations across 45 countries
TCS is the largest Indian company by market capitalization. TCS is now placed among the most
valuable IT services brands worldwide.In 2015 TCS was ranked 64th overall in
the Forbes World's Most Innovative Companies ranking, making it both the highest-ranked IT
services company and the top Indian company
BENEFITS
EMPLOYEE ASSISTANCE PROGRAMME
The Employee Assistance Program (EAP) is a program that your employer offers at no cost to
you, for you and your household members. It’s here to help you with life’s challenges, whether
workplace or personal.
EAP can help you with concerns such as:
• Stress and depression
• Caring for children and aging parents
• Family, work or personal relationship issues
• Alcoholism or substance abuse
• Bereavement
• Coping with a chronic illness
• Job or career anxiety
• Lab Tests of certain amount can be reimbruised from the employer.
• Extra pay for employees who work on weekends(recruitment drive).
• Maternity leave can be extended beyond 6 months,as it purely depends upon on the
employee capability and retention of employee.
• There is also an provision where an employee can report at any time at the office but
should serve a minimum of 8hours ,for that day.
• Food card is provided to the employee for a certain amount worth which he/she could
use.
The objective of study
To find out awareness and utilization of employer’s benefits amongst its employee’s
To assess the accessibility and effectiveness of benefits to the employees.
To improve employer and employee relationship.
To improve the benefits provided to the employees.
Research Methodolgy
Research problem :
To find whether employees are aware of the benefits provided to them and how effectively are
the benefits being used.
Research Objectives:
To assess the effectiveness and accessibility of benefits to the employees.
To improve the benefits provided to the employees.
To improve employer and employee relationship
Data Collections Methods :
Primary Data Collection: Questionnaire
Secondary Data Collection : Interviews.,Online Reports
Sampling Technique : Simple Random Sampling
Sample Size : 36
Questions asked to the HR Person
1) Are the employees satisfied by the benefits provided to them?
A)HR did not answer this question as it is an internal organization information.
2)What queries are usually being raised by employees regarding the benefits?
A) Around medical insurance, work life balance, travel facilities like rail or air/hotel category ,
advanced learning or training expenses etc.
3) When and how does the employer bring new benefits to employees?
A) An employer brings new benefits for reasons like being at par with the best practices in the
industry, asks from employees, retention strategy, employee satisfaction. Some practices are
brought in from external inputs.
4)Are employees aware of the benefits,if not what practices are followed?
A) Employees are made aware of all benefits right from the day of joining. Through the year
benefit roadshows, email communications and videos are used to communicate any new changes
or introductions.
5) Does employee seek for any revision in benefits?
A) Benefits are formalized and eligibility standardized as per organization policy. For any
revision to be considered, several inputs are considered and reviewed before a benefit can be
revised.
6) And how does the employer take up such suggestions or requests?
A) Employee feedback survey or other feedback mechanisms are considered for changes.
Questionnaire for Employees:
RESPONSES OF IBM
RESPONSES OF TCS
RESPONSE OF IBM
RESPONSE OF TCS
RESPONSE OF IBM
RESPONSE OF TCS
RESPONSES OF IBM
RESPONSES OF TCS
RESPONSE OF IBM
RESPONSE OF TCS
RESPONSE OF IBM
RESPONSE OF TCS
RESPONSE OF IBM
RESPONSE OF TCS
RESPONSE OF IBM
RESPONSE OF TCS
RESPONSE OF IBM
RESPONSE OF TCS
RESPONSE OF IBM
RESPONSE OF TCS
SUGGESTIONS
Employer should bring new benefits for reasons like being at par with the best practices
in the industry to maintain employee satisfaction and retention withtin the company
Benefit roadshows, email communications and videos should be frequenty conducted so
that the employees would be aware of all the benefits provided to them.
Employee feedback survey’s or such other mechanisms should beconsidered for changes,
enhancements and new introductions of benefits.
CONCLUSION
The findings shows that most of the employees are much aware and usually satisfied with the
benefits provided to them, however the effective utilization depends upon how and when a need
for such benefit arises,besides job satisfaction,salary,growth and other such factors,employee
benefits add a lot of value in boosting the morale of an employee as well as placing him in a
comfortable,secured and a harmonious state.
