Human Resource Management Individual Assignment - Employee Benefits Contents What is a Benefit? 3 How do (employee) benefits affect us? 3 The concept of Employee Benefits 3 What are Employee Benefits? 4 The employer's challenge. 5 Why use employee benefits? 6 Three important factors that influence performance for employees: 7 Conclusion: 7 Bibliography: 7 What is performance? Some examples from the 1913 Webster dictionary definition of the word "benefit": 1. An act of kindness; a favor conferred 2. Anything that promotes personal prosperity and happiness, or adds value to property; advantage; profit. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay To be advantageous; do good to; to the advantage; advance in health or prosperity; be useful to; profit. To gain advantage; make improvements; profit; as it will benefit from the change. financial assistance in case of need 6. something that helps or promotes well-being: "for the greater good" How do (employee) benefits affect us? In most industrial countries, government-provided benefits (for example, Social Security and Medicare) represent by far the largest expenditure in the federal budget. Government tax subsidies for benefits provided by private individuals (businesses) amount to hundreds of billions every year (in most industrial countries). Almost every day the news talks about employee benefits and perks. It is a matter of public interest. The concept of Employee Benefits The concept of Employee Benefits originated in the United States, where in the 19th century there were fraternities that offered private members burial, pension and sickness provisions. These organizations were succeeded by charitable institutions, precursors to trade unions, which offered benefits to attract members. Today, the concept of employee benefits is part of the business strategy of most companies around the world. This concept plays an important role in maintaining and achieving a competitive advantage by retaining key employees. What are employee benefits? An employee benefit is a benefit provided or paid by the employer for the benefit of the employee or his or her family. Benefits are generally included in the employee's pay for tax purposes. Benefits may also be excluded from pay in whole, in part, or only to the extent that certain conditions are met. Employee benefits are usually exchanged for the work performed by the employee, although the obligation to pay the benefits can also arise from the termination of the employment relationship. The obligation to provide employee benefits arises from contractual agreements between the company and the employee, legislative requirements, industry practice and commercial practice. A company typically settles employee benefits with cash payments or non-monetary benefits such as goods and services. Employee benefits can be paid over the period or in the future. Employee benefits typically include: bereavement leave, disability, life and other types of insurance; family medical leave; health benefits; subscription or subscription discounts; removal expenses; retirement and pension benefits; vacation; and travel benefits. An employer's benefits plan may include all, or just some, of the above benefits. Different selections of employee benefits arecalled benefits packages. There are many different employee benefits. They differ from country to country and from company to company. The selection of benefits will change constantly. Below are some examples of employee benefits divided into main groups. Retirement Insurance Required by Law Related Payment for Time Not Worked Other Social Security Unemployment Compensation Workers' Compensation State Disability Insurance Pension Fund Annuity Plan Early Retirement Disability Retirement Tip Retirement Medical Insurance Accident Insurance Life Insurance Insurance Dental Survivors' Benefits Disability Insurance Vacations Holidays Sick Leave Military Leave Election Day Birthdays Funerals Paid Time Off Lunch Periods Washing Time Travel Time Company Discounts Moving Expenses Severance Pay Tuition Reimbursements Credit Union Company Car Legal Services Financial Advice Recreational Facilities Company Provided Meals The Employer's Challenge. A company that successfully provides employee benefits will get what they want in return; high retention, happy employees, loyalty, low sickness absence rate etc. It is important that a company communicates its employee benefits and that the selection of these benefits reflects the wants and needs of the employees. “Above all, employees want medical insurance,” said Harriet Hankin, president of CGI Consulting Group Inc. in Malvern. But beyond that they want more control over their health care options, with a choice of plans and steep discounts. Harriet continues: “Generations have different desires at different ages in their lives. For example: For the youngest employee, long-term care may not be as important as car insurance or benefits that offer child care and vacation time. Today's benefits trends are toward self-sufficiency, flexibility and employee choice. Flexibility in time off, tailored to employee interests. "Companies that design one-size-fits-all plans will lose out. opportunity,” says Hankin expected health care and retirement options, “gender, age and marital status are determining factors in the type of benefits employees seek,” Hankin said.1 Voluntary benefits are thriving A typical benefits package can include voluntary benefits ranging from luxury items - pet insurance or discounts on computer purchases - to more practical solutions, such as home or car insurance, financial advice or long-term care . Voluntary benefits offer flexibility and control to the employee. Voluntary benefits allow employees to purchase additional benefits beyond those offered by the employer. In Australia, Salary Packaging is an increasingly popular way to structure voluntary employee benefits. With Salary Packaging an employee can choose to obtain specific benefits instead of cash, only having to pay taxes in cash. This allows the employee to obtain significant tax savings. Salary Packaging allows the employee to structure personal finances so that certain expenses are paid from pre-tax income. Why use employee benefits? Human resource management is about recognizing people as perhaps a company's most important asset and managing them as best as possible. A company's competitiveness in its industry refers to its ability to maintain and gain market share. Competitiveness is linked to effectiveness.