Employee benefits: Benefits are indirect financial payments given to employees. They may include health and life insurance, vacation, pension, education plans. Gary Dessler.
Benefits are the supplementary hidden cost of the employers which are given to employee beyond wages or salary. (Dale, Yoder)
Employee benefits are optional, non-wage compensation provided to employees in addition to their normal wages or salaries. You are not required to provide: Retirement plans, Health plans, Dental or vision plans, Life insurance plans, Paid vacations, holidays or sick leave etc. The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve worker retention across the organization.
Objectives of benefits of employees and managers –
Objectives of employees and managers: There are many objectives of benefits for employees and managers. Some are as follows –
- To enhance the motivation level.
- To create job satisfaction.
- To decrease the turnover rate.
- To increase productivity.
- To increase sales volume.
- To enhance the level of moral.
- To reduce the rate of absenteeism.
- To create joy for work.
- To share the risk of accident and illness.
- To encourage saving for retirement or a bad time.