Companies provide their employees and workers with a variety of benefits. These benefits are basically forms of value or services that are provided by an employer to his employees for their contribution in the performance of the organisation . Such benefits are an important component of a company’s remuneration package for attracting and retaining its employees. The benefits serve as incentives to the employees and encourage them to work harder for the organisation. These also help in building up employee job satisfaction.
These benefits may be financial or non-financial,long term or short term,free or at concessional rates.They may include educational, residential, medical, or recreational facilities. Such facilities may be provided individually or collectively and inside or outside the organization. Thus the employee benefits are the comforts and the facilities given to employees to enable them to work in a healthy and peaceful atmosphere.
The employee benefits of a company generally includes:- (i) A remunerative wage structure which motivates the employees to contribute their maximum worth to the enterprise; (ii) bonus to the employees either on festive occasions or as a reward for their contribution in the high performance of the firm; (iii) Social security benefits for employee welfare in the form of provident fund, gratuity, medical facilities, compensation and insurance policies; (iv) different types and number of leaves so that the employees may revitalize themselves and contribute their best effort to the organization; (v) employees who wish to voluntarily retire from an organisation are provided with several benefits under the voluntary retirement scheme.
Given the various types of employee benefits, a firm may design,administer and manage a comprehensive benefit package for its employees depending on its work culture and organisational set up.