Presented by: SHEILA M. DELA CRUZ Presented to: MICHELLE B.

LUZON, MBA

OBJECTIVES:
Define what fringe benefits are. Enumerate the reasons why benefits and services are given to employees.

Explain the governing philosophies in granting fringe benefits.

Know the classification of benefits given to employees Differentiate employee benefits and services from company benefits and services.

THE BEGINNING OF THE FRINGE BENEFIT CONCEPT OBJECTIVES IN GRANTING FRINGE BENEFITS PHILOSOPHIES IN GRANTING FRINGE BENEFITS CLASSIFICATION OF FRINGE BENEFITS DIFFERENCES BETWEEN EMPLOYEE BENEFITS AND SERVICES and COMPANY BENEFITS AND SERVICES

FRINGE means border or an outer edge. BENEFIT defined as anything contributing to an improvement To do good to or for To receive an advantage

FRINGE BENEFIT anything on

the edge or added to the regular wage or salary of the employee in order to improve his economic condition.

 These are additional compensations that the employees receive regularly at an interval stipulated in the company policies and guidelines.

The granting of employee benefits started as welfare aid by employees for their employees and the latters families. Management learned that giving said benefits help gained the employees loyalty, cooperation and goodwill and inspired them to work efficiently.

For some time, this paternalistic attitude worked well specially when the enterprise was small, the employees were few and the employer could get familiar with all the employees and their dependents.

 As the firm expanded from the small family-owned business to a larger corporation and the company workforce increased tremendously due to the larger expansion of business operations, the granting of fringe benefits become less and less appreciated by the employees.

 With no definite policies and programs governing the granting of said benefits, inequalities in the award of fringe benefits to individual workers usually resulted causing dissatisfaction among a good number of employees.

In some instances, this led to the formation of labor unions to secure more clear cut policies governing the granting of employee benefits. This also resulted in the active quest for the fair treatment of all employees in the granting of benefits and services.

 Today, fringe benefits fall under two categories, those granted by the management at its own initiative and those required by government legislation.

To develop satisfied employees and more concerned workers to avoid activism in the workplace that will interfere with company production.

To develop partnership with labor unions and employee association.

Company benefits should be based on the financial conditions and the capability of management to pay additional cost of operations as benefits granted cannot be withdrawn when already granted.

Benefits granted should not interfere with company operation and management has the prerogative to control the same.

The benefits should be fair to all employees of equal ranks and positions and should be capable of uniform implementation.

The benefits must have mutual value to both employers and the employee concerned.

The employee must understand the cost of benefit implementation and they should work hard so that the company will maintain its ability to pay the added things.

Benefits must be measured in terms of employees services to the company.

Benefit program should be a cooperative effort of top management and employees.

Employees who believe that management is concerned about them as a whole person - not just an employee - are more productive, more satisfied, more fulfilled. Satisfied employees mean satisfied customers, which leads to profitability. Anne M. Mulcahy

Thank you..