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Managing Employee Benefits

Employee benefits are provided by the companies with the intention of retaining the key employees, improving employee morale and minimising the employee worries related to the economic matters to some extent. The employee benefit programs offered by the company vary with the changes in the economic environment of the company. Identifying the various benefits and managing them with the intention of making them beneficial to the employees requires great attention.

The first step in managing the employee benefit program is figuring out the amount that can be allocated by the company for paying benefits. On defining the designated sum for employee benefits, the company has to identify the kinds of benefits that can be offered to them. Industrial analysis, economic environmental evaluation, statutory requirements, employee needs, all gives the necessary input in determining the various benefit programs. The benefit plan might be of value to the employee during the current period or in future. Benefits like medical reimbursements and holiday pay can be enjoyed by the employee in the short term. Medium term benefits include employee stock options or ESOPs which can be termed as benefits that are given with the intention of retaining the employees for a medium period of time. Long term benefits include the pension plan, superannuation, etc that can help in negating the worry over the future to a large extent.

The employee benefits could be at the discretion of the employer or decided by law. Statutory benefits include gratuity, superannuation, etc, which are decided by the law. The employer’s and employee’s contribution to them should be made as prescribed by the law. The employee benefits have to be redesigned and the rates changed to incorporate the changes happening in the environment. The industrial trends, government regulations, taxation laws are to be scrutinised and the changes are to be made to benefit the individual employee.

These plans must change with the requirements of the employees residing in various countries of the world. The company has to be well versed about the employee needs and the regulations in the foreign countries. With many Indian companies like the Tatas acquiring foreign companies, the company should have a thorough knowledge of the regulations controlling the employee welfare, especially when there is a high reduction in the existing employees in the old company.

The various employee benefits and the changes in them have to be communicated to the employees to make them aware of the benefits and identify its impact on their lives. The different types of benefits available to the employees give the supporting framework for a better employer-employee relationship.

Benefit plans may take the form of bonuses and stock options. They could also be intangible benefits like the approval from the supervisor and/or customer and promotional opportunities which can induce the individuals to perform better. The changes in the employee benefits also vary according to the promotional plans of the entity. Recognition of the demands of the people in various levels and comparing them to those existing in the industry and the government regulations helps in taking better decisions relating to the types of employee benefit plans.

The company also have to take measures in ensuring easy dispersal of the funds to the employees. Most companies request the employees to start a separate account for transferring the reimbursed amount of the actual expense. The submission of the bills and its collection must be made hassle free.

Identifying the employee needs and moving with the trend is a prerequisite in managing employee benefits.

Comments Listing
Posted: 25/04/2011 09:59:37

very nice

Posted: 21/03/2011 23:33:27

Good article

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