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1. Benefits and services need to be provided to the employees
on the basis of a genuine interest in the protection and
promotion of their well being.
2. The benefits need to satisfy a real need. Employees resist or
are indifferent to any benefit which is not liked by them.
3. The benefits need to be cost-effective.
4. The benefits needs to be as broad-based as possible.
5. Administration of the benefits need to be preceded by
sound planning.
6. The wishes of the employees as expressed by their union
representatives and the bargaining power of the union need
to be considered.
7. Employees need to be educated to make use of the benefits.




 
 

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· Vompanies provide payment for the time not worked, both on- and off-the job.
· On the job free time includes lunch period, rest period, coffee breaks. Of the job time
includes vacations, sick leaves, public holidays, personal and public holidays.

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· Organizations offer life and health insurance programmers to their employees.
· Most organization offer insurance at a cost far below what individual have to pay to
buy insurance by themselves.

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· isability and workers compensation benefits are also offered to employees.
· Employees contribute funds to assist workers who are ill and injured and cannot work
owing to occupational injury or ailment.

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· Most organization offers plans to provide supplementary income to employees after
they retire.
· These are either company paid or joint employee-and company paid programmes
meant to supplement social security.
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] The main problem in indirect remuneration is the lack of employee

participation. Once the fringe benefits programmes are designed by
the company, employees have a little discretion.
] Since employees have a little choice in their benefit packages, most
workers are unaware of the benefits to which they are entitled. The
lack of knowledge often causes the employee to request for more
benefits to meet their needs.
] The steps taken in coming out of the such problems in an organization
are :
I. Establishing Benefits Objectives.
II. Assess Environmental Factors.
III. Access Vompetitiveness.
IV. Vommunicate Benefits information.
V. Vontrol Benefits Vost and Evaluation.


 






Establishing Benefits Objectives.

Assess Environmental Factors.

Access Com etitiveness.

Communicate Benefits
information.

Control Benefits Cost and

Evaluation.

ENVIRONMENT
m ESTABLISHING BENEFITS OBJEVTIVES.

6 It is essential for the management to establish objectives for its

benefits programmes.
6 Benefits accomplish four objectives :
I. Forecasting external competitiveness
II. Increasing cost effectiveness
III. Meeting individual employee͛ needs and preference
IV. Vomplying with legal compulsions

m ASSESSING ENVIRONMENT

6 External as well as the internal factors influence indirect

remuneration programme.
6 Among the external factors include such aspects as government
policies and regulations, unions, and economic factors.
6 The major government policies which influence employee benefits
and services are wage regulation, tax policies, and special benefit
laws.
m ASSESSING VOMPETITIVENESS

6 Most often than not, organization offer benefits to match or

outstrip those offered by competitors. How to ascertain the
competitors͛ benefit packages ?
6 These are assessed through market surveys conducted by
professional association and consultants.
6 These survey provide data on various benefits offered, their
coverage, eligibility, and costs.

m VOMMUNIVATING THE BENEFITS

6 Benefits are communicated through booklets, brochures, slides

presentations, and regular employee meetings.
6 An effective method is the employee calendar which communicate
the total remuneration components.
m EVALUATION AN VONTROL

6 One way of assessing the usefulness of fringes is to ascertain

how far the advantages claimed in favor of indirect
monetary schemes have really benefited the employees.
6 There are many questions relevant in this context these are :
· Have the earnings of the employee improved ?
· Has the morale of the employees gone up ?
· Have the benefits been able to attract and retain competent
people ?
· Have industries relation improved ?