INTRODUCTION:
Benefits are over and above wages and salaries offering provided to employees as part of compensation. They can be called as fringe benefits, perquisites, non-financial benefits, and soft benefits. These have been offered since colonial times, but gained popularity during the World War. The government used it to attract people to join armed forces. Ever since then benefits have become integral part of compensation and have been used as a recruiting, retaining strategy for organizations. Initially benefits could be categorized as providing health care, pension, retirement, etc. but they have evolved so much that these are considered as traditional benefits and a few are mandated by law. The new range of benefits are so dynamic …show more content…
• Flexible working hours.
• Preference to telecommute rather than have a face-to-face interaction.
INDUSTRY PRACTICE: If we investigate companies which have been successful in attracting and retaining top talent such as Google, IBM, Deloitte etc. They provide a wide bouquet of benefits other than compensation. Employees feel that they are entitled to receive traditional benefits such as medical, dental, what makes a difference is when the co-pay are low. However providing employee with lower co-pay has become increasing expensive and hence it is critical for employers to innovate non-traditional benefits. Today’s workforce comprises of 3 different generations i.e. millennials, generation X and baby boomers. Nevertheless there are few benefits which are appreciated by all of them such as flexible working hours, compressed work week, work from home, sabbaticals, however customization as per each company’s employee force is the key to attract and retain …show more content…
This brings out a sense of loyalty in employees as they feel that the company is thinking about their well-being by assisting them in dealing with their day-to-day difficulties. Another attraction to non-traditional benefits is that employee see these as reduction in their family expenses thereby increasing more disposable income in their hands. Employee give consideration to benefits and perks while considering a job. They opt for organizations which provide a holistic benefits and perks package over higher pay as they will result in the employees being happy and result in their overall
Benefits are over and above wages and salaries offering provided to employees as part of compensation. They can be called as fringe benefits, perquisites, non-financial benefits, and soft benefits. These have been offered since colonial times, but gained popularity during the World War. The government used it to attract people to join armed forces. Ever since then benefits have become integral part of compensation and have been used as a recruiting, retaining strategy for organizations. Initially benefits could be categorized as providing health care, pension, retirement, etc. but they have evolved so much that these are considered as traditional benefits and a few are mandated by law. The new range of benefits are so dynamic …show more content…
• Flexible working hours.
• Preference to telecommute rather than have a face-to-face interaction.
INDUSTRY PRACTICE: If we investigate companies which have been successful in attracting and retaining top talent such as Google, IBM, Deloitte etc. They provide a wide bouquet of benefits other than compensation. Employees feel that they are entitled to receive traditional benefits such as medical, dental, what makes a difference is when the co-pay are low. However providing employee with lower co-pay has become increasing expensive and hence it is critical for employers to innovate non-traditional benefits. Today’s workforce comprises of 3 different generations i.e. millennials, generation X and baby boomers. Nevertheless there are few benefits which are appreciated by all of them such as flexible working hours, compressed work week, work from home, sabbaticals, however customization as per each company’s employee force is the key to attract and retain …show more content…
This brings out a sense of loyalty in employees as they feel that the company is thinking about their well-being by assisting them in dealing with their day-to-day difficulties. Another attraction to non-traditional benefits is that employee see these as reduction in their family expenses thereby increasing more disposable income in their hands. Employee give consideration to benefits and perks while considering a job. They opt for organizations which provide a holistic benefits and perks package over higher pay as they will result in the employees being happy and result in their overall