significant Benefits and service programmes
Sime organizations provide an amazing range of benfits.The discussion below,however,focuses on major benefits to which organizations contribute a substantial amount of service. Payment for time Not Worked companies provide payemt for time not worked,bot on- and of the job.On the job free time includes lunch periods,rest periods,coffe breaks,wash up times and get ready times.Off the job time includes vacations,sick leaves,public holidays,and personal or casual leaves. Insurance Benefits Oraganozations offer life and health insurance programmes to their employees.Most organizations offer insurance at a cost far below what individuals would have to pay to buy insurance by themselves. Compensation Benefits disability and workers compensation benefits are also offered to employees.employers contribute finds to assist workers who are ill or injured and cannot work owing to opccupational injury or ailment.these benefits are regulated by workmen's compensations Act. Pension plans Most organizations offer plans to provide supplementry income to employees after they retire.These are either company paid or joint employee and paid programmes meant to supplement social security. Along with pensions,organizations pay gratuity to employees attaining superannuation.there is however, a ceiling on gratuity which may not be justified.If an employee has served an organization for a long time,there is no reason why he or she should be denied the benefit of higher gratuity. A company's social security and worker's compansations contributions are set by the law.But how much to contribute for other kinds of benefit is upto each company to decide. Some organizations comtribute more to the cost of these benefits than others do.Some others pay the entire cost,others pay a percentage of the cost of certain benefits,such as health and insurance,and bear the entire cost of others. Oragnizations are discovering new ways of rewarding their employees.Modi
Xerox,for example,has institued an Annual Achievement Award which recognises employees contribution to customer satisfaction,profits,process inprovements,or team spirit improvement throught a citation and a cheque of Rs.500 to every member.In addition,Modi xerox has an Exceptional Performance Award-with nominations from team,facotry and national level managers-which offers a proze of Rs.3000 er head and a plaque.Moreover,the narional winners qualify for the Xerox President's Award which offers a unique contribution to sustained high performance by an individual or a team. At Colgate-Palmolive,there is three level scheme called you can make a difference to encourage innovative ideas and entrepreneurial action from employees.Awarded every quarter at the local level and every year at the natioal level,the top than complete for globak recognition. Club membership is highly popular.NIIT,for example,has set up a Managing Director's Quality Club (MDQC) and more recently ,a President's Club,Typically,nominations come from all the regions,covering 2200 NIIT employees,and are based on employees contribution and performance. among the nominated,15-18 are shortlisted by MD himself.Those shortlisted are expected to work closely with the MD on his total quality programme.It is considered an honour for the shortlisted employees. On the other hand,the members of the Presidents's Club are noted on the basis of the speed and innovation.Once again,the 18 winners work closely with NIIT's presidetn to enrich the organisation.Similarly,the Modi Xerox has instituted an Honours Club,which recognises outstanding performance.So far, 350 employees from the company have bagged their honours,an all expenses paid holiday abraod. Club memebership is available even for non- members but who have stayed with the organisation. For instance,NIIT has an Old Timers Club for employees who have been woth the company for five years,and a Real Old Timers club for those who have completed 10 years.Members of both the club recieve special recogniton along with plaques. In additon,NIIT has introduced paternity leave fo]r men employees,with the added option of flexi-time employement and an additional Rs 200 conveyance allowance for new parents.The new year day has been designated as "Granny Gratitude Day" and is a compulsory holiday for all. Colgate- Palmolive ,modi Xerox and NIIT comduct annual painting contests for their respective employees children.NIIT uses the award winning -painting for its calendar.
Administration of Benefits and Services Oraganisations fumble while administering employees benefits and services.Yielding to the pressure of the unions,demand or indifference to social response trends,companies have added newer benefits and services to the list,which is already lengthy.Organisations have seldom established objectives,systematic plans,and standard to determine their appropriateness of the programmes.
Problems in Administration The main problem is indirect remuneration is the lack of employee participation.Once a fringe benefit programme is designed by the company,employees have little discretion.for example,the same pension usually is granted to all workers.younger employees see pension as distant and largely irrelevant.Older female workers feel that the maturity benefits are not needed.The uniformity of benefits fails to recognise a workforce diversity.Admittedly,uuniformity leads to administrative and actuarial economies,but when employees recieve benefits they noither want nor need these economies are questionable. Managers,too,have little interest in the benefits programmes and the trade unions are almost hostile to the scheme.Managers are not even aware of the company's policy towards benefits and their contribution to the quality of corporate life.Trade unions entertain a feeling of alienation as the benefits are likely to erode their base. Since employees have a little choice in their benefot packages,most workers are unaware of all the benfits to which they are entitled this lack of knowledge often causes employees to request for more benefits to meet their needs.For example,old workers may want improved retirement plans while younger workers seek improved insurance coverage for dependents.The result is often a proliferation of benefits and increased employer cost.and perhaps even worse,employees confusion can lead to complaints and dissatisfaction about their fringe benefits packages.,particularly when employees do not have to comtribute financially. These problems can be avoided if the following lines are taken while administering indirect remuneration.The steps are: 1.Establishing the benefit objectives. 2.Assessing the environmental factors.
3.Assessing competitiveness: how should our benefits compare to our competitors. 4.Communication benefit information. 5.controlling benefits costs and evaluation.
Establishing Benefit Objectives It is essential for the management to establish objectives for its benefits programmes.In establishing objectives,the management may consider several factors.One such consideration is employee preference.Personnel/Hr outcomes--attendance,length of service,and performance shpuld also recieve due attention in the objective setting process. Typicaslly,benefis accomplish four objectives: (i) fotering external competitiveness (ii) increasing cost effectiveness (iii) meeting individual employee,needs and preferences and (iv) complying wth legal compulsions whatever the objectives,they must reflect the organizations ability to pay.
