Fringe Benefits

The employee benefits are certain additions to the normal salary that an employee enjoys as a privilege for being associated with a particular organization. It can also be referred as perks and it varies depending on the organizational policies. Health insurance, gift vouchers, retirement plan, provident fund, holidays, free services, etc can be included in Fringe benefits.

Tangible from of benefits are the ones mentioned above and the benefits are generally non-cash items. Intangible benefits can be a gesture of appreciation from your senior or boosting an employee’s morale through confrontation, etc. Employees need to hear ‘good job’ when a task is performed well. The major reason why employees leave their job is because of lack of appreciation, constant pestering or finding faults in their work mannerisms.

Fringe benefits can help in employee retention to a great extent. Apart from the monthly salary a certain addition to the salary makes the employee feel worth wile. They feel valued for their contribution and try to gain this kind of perk frequently, which ultimately enhances their performance level and the company becomes the beneficiary.

The life insurance plans provides security to the employee. Certain prerogatives like concession on commodities are also included in fringe benefits which can be beneficial to the employee. This helps in developing a sense of belonging in the employee’s mind towards the organization. It also assists in building efficiency since the employee feels responsible for the company’s future. The holidays or free services makes the employee feel obliged towards the company and thus the employee takes pain to contribute more vigorously for the company.

The perks are also a form of saving. As the amount directly gets transferred into a provident fund account or retirement plan scheme, the savings for your future is assured and anchored.

Every company is working for these benefits as they prove benign for both the company and its employees. It works on the simple principle of having what you deserve. If you contribute to the core, you will receive the most.

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