Perks and Benefits in The Organisations - Essay Example

 Benefits FRINGE BENEFITS Introduction Fringe benefits are regarded as perks given to employees apart from their salary and wages, these benefits not only motivate employees to remain with the organization but also encourage them to work harder in order to get to a position where they can avail more perks. They can also be termed as compensation plans which may or may not be taxable depending upon the law of the country in which the firm is located. Such perks and benefits can include numerous things such as housing arrangements provided by the employer, free or discounted medical facilities, day care, insurance plans, retirement and provident fund packages, job security, year-end paid vacations, provision of cars and a lot more. This makes it clear that the branch of fringe benefits has a lot of examples and types under its shelter making it easier for employers to pick the ones feasible for them to motivate their employees. A company offering a high level of fringe benefits is also regarded as one of the best employers and makes a market reputation of itself in the job market ending up in hiring the best of all applicants (Wisteret, 1959). The nature It is seen that everything which gives an appropriate level of advantages is said to have some draw backs of using it as well. Fringe benefits by nature are regarded as employee motivators and factors to approve your desirability as an employer in the market; it can be proved as well by looking at the top most employers of all time who are said to be giving out many fringe benefits to their employees apart from good salaries which has made them create their good image in the employment market (Newstrom, 1977). However, Fringe benefits, like everything else can cause a certain amount of damage to the organization as well if we look at them from the perspective of small employers. To them, fringe benefits can be very costly and can also cause problems in the capital management of the organization. Moreover, not distinguishing employers by their size, it is seen that many employers offering a good level of fringe benefits face trial in the court due to complains by some neglected or incapable employees who fail to show desired performance to become eligible of the benefits. This costs many companies a whole lot of money while also creating a bad image of them in the market. The range Fringe benefits today can include numerous things such as: housing arrangements provided by the employer, free or discounted medical facilities, day care services, insurance plans, retirement and provident fund packages, job security, year-end paid vacations, provision of cars and a lot more Specific packages Provident fund and pension packages Such packages are usually offered from the lower level of staff to the highest level but they tend to differ from one another on the seniority basis Housing facilities Housing packages are generally provided to senior employees in most companies but some might give their lower level employees a hostel type of accommodation as well. Accommodation just like other packages gets bigger and more comfortable as an employee climbs the ladder up in an organization Day care services Such packages are mostly offered to all company employees as this arrangement is offered at the premises of the company itself. New development in packages Day care services and job security packages are the new advancements Conclusion Fringe benefits are the oldest form of compensation apart from salary and wages and will continue to be offered by employers to motivate and retrench its workforce. MATERNITY BENEFITS Introduction Whether a company has given attention to maternity benefits or not an employee is still entitled to maternity benefits by law. Law, they differ from country to country but Women who are pregnant, have recently given birth or are caring for a new born are all entitled to maternity benefits, moreover, parents who have recently adopted a child also can apply for them in many countries. Since maternity benefits are allowed to the employees by does not get effected by the seniority of the employee (Martocchio, 2008). The nature Maternity benefits by nature are constitutional and are forced by law on the employers to be followed under any circumstances. The range Maternity benefits are generally given to biological and surrogate mothers and include: Maternity leave with pay Financial assistance in medical facilities Specific packages There are no specific packages just time durations under which leave with pay is granted to pregnant women. New development in packages Recent developments have included surrogate mothers and parents who have adopted a child into the benefits act. Conclusion Conclusively, maternity benefits are the right of each and every employee and a failure by the employer in being unable to grant these benefits can result in a heavy fine and even imprisonment. HMO BENEFITS Introduction HMO benefits are under the Health maintenance organization which provides and arranges health care benefits like insurance for employees and seeks to it that employers with more than 25 employees offer theses certified HMO benefits if the employer provides its employees any medical facilities and health insurance. It is just a standard of health care which an employer needs to achieve when offering health care benefits to its employees (Beam & MacFadden, 2001). The nature The nature of these benefits is as such that the health maintenance organization works as a mediator between the employer, the health care providers and the employees on a prepaid basis. The range There are three models of HMOs: The staff model Group model Network model Specific packages Staff model allows the HMOs to have directly employed physicians as their salaried staff In the group model the HMOs are in direct collaboration with a group of physicians or a panel who are not their employed staff An HMO will be in a contract with several groups at once in the network model New development in packages No new developments have been seen in the HMOs. Conclusion In conclusion, HMOs are mere acting mediators between the employers, employees and the health practioners present to regulate standard health care to employees of various companies. 401K BENEFITS Introduction The 401k benefits plan was formulated in 1978 and is a derivation of the internal revenue codes subsection 401(k) which defines contribution plans with a limit of up to $17,500. These contributions are said to be tax deferred that is that they are not taxed when issued but are taxed when a withdrawal is made. The nature The 401k benefits fall under pension and retirement plans provided by the employer to the employee. The funds in the 401k account can be invested in various financial instruments like stocks, bonds and mutual funds along with property and other assets. There are certain risks involved in the 401k accounts as the assets held by people under this account are not backed up by insurance from the government. Moreover, the organizations suffering from financial crises can waive their right to give full amount of the 401k benefits (Branch et al, 2007). The range The form of benefits which can fall under the 401k benefits can be in the form of assets, money, stocks, bonds, mutual funds and even life insurance. Specific packages The packages offered by each company differ from one another, moreover, the employees have a flexibility of choices as to how they want their assets to be invested. New development in packages The new development in the 401k benefits is the rollover of assets which is to facilitate employees moving from one company to another to transfer their assets from the previous employer to the new one. Conclusion Conclusively, 401k benefits plan covers retirement very appropriately and these benefits have become one of the key bases for employer selections. References Top of Form Top of Form Top of Form Top of Form Top of Form Beam, B. T., & MacFadden, J. J. (2001). Employee benefits. Chicago, Ill: Real Estate Education Co. Branch, B., Ray, H., & Russell, R. (2007). Last rights: Liquidating a company. Oxford: Oxford University Press. Martocchio, J. J. (2008). Employee benefits. New York: McGraw-Hill Higher Education. Newstrom, J. W., Davis, K., & Davis, K. (1977). Study guide to accompany Davis Human behavior at work: Organizational behavior. New York: McGraw-Hill. Wistert, F. M. (1959). Fringe benefits. New York, London. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More