Presented by

Shivraj C.
 Overview
 Introduction
 Objectives

 Designing the

Benefits

 Benefits

Administration
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 Employee benefits (also called fringe benefits,
perquisites, or perks) are various non-wage
compensations provided to employees in addition to their
normal wages or salaries.

 Employee Benefits are growing in both cost and

complexity. Once regarded as "fringe benefits"--minor
appendages to basic wages and salaries--they now
commonly account for a fourth or more of expenditures on
employee compensation.

 Furthermore, their increased complexity is a major reason

for the growing professionalization of benefits design and
administration.

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 Employers’ objectives in providing benefits:
 Enthusing and motivating employees to work harder.
 Improving staff retention and attraction.
 To foster good morale.
 Improving the health and welfare of employees.
 Being seen as an employer of choice.
 Reducing workplace stress.
 Complying with benefits regulations.

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 Overview
 Designing the Benefits
 Types of Benefits
 Companies with Best Benefits
 Life inside Google

 Benefits Administration
 Trends and issues

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 Healthcare

 Private medical insurance

(PMI)
 Employee assistance

programs (EAPs)
 Personal accident insurance
 Healthcare cash plans
 Subsidized gym membership

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 Child care
 Employer funding of childcare
 Employer makes full or partial

payment for the cost of childcare

services, regardless of location.

 On-site childcare
 Employer manages a childcare

facility at the work site.

 Off-site care
 Employers, or a group of employers,
manage a childcare facility away
from the work site.

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 Retirement Plans
 Defined benefit scheme
 guarantees a certain payout at retirement, the sum of which

is based on an employee's salary and length of employment.

 Defined contribution scheme
 is built up through cash contributions from both the employer

and the employee. The final fund employees stand to gain,

however, is dependent on the stock market performance of
their investment choices. This scheme may include:
• 401(k) plan
• Individual Retirement Accounts (IRA)
• Simplified Employee Pension (SEP)

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 Insurance Plans
◦ Life insurance
◦ Health insurance
◦ Disability insurance
◦ Other

 Time-off Plans
◦ Sick Leave
◦ Vacations
◦ Paid holidays
◦ Sabbaticals

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 Miscellaneous
 Work-life balance
 Telecommuting
 Subsidized food services
 Fitness programs
 Recreational opportunities
 Education subsidies
 Financial assistance
 Stock options
 Parking
 Transportations
 Travel expenses
 Relocation expenses
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 Type of benefit Description

Sixteen companies on this year's list pay 100% of their

Health Care employees' health-care premiums.

Almost one-third of the Best Companies (32) offer an

Child Care onsite child-care center.

The top 10 Best Companies where employees feel

Work-Life Balance "encouraged to balance their work and personal life."

Of the 82 Best Companies that allow employees to

Telecommuting telecommute or work at home at least 20% of the time,
these 10 have the highest percentage of telecommuters.

Sabbaticals 22 companies on this year's list offer fully paid

sabbaticals.
These companies found unusual ways to keep their
Unusual Perks workers happy.

Source: “100 Best Companies to Work For

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2007”
 Source: “100 Best Companies to Work For
PG Centre, VTU Belgaum 2007”
 Google's gourmet food: Google runs 11 free gourmet
cafeterias at its Mountain View, Calif., headquarters, and
offers all its employees free gourmet meals.
 Getting around: Google operates free, Wi-Fi-enabled
coaches from five Bay Area locations. Offers onsite car
washes and oil changes.
 Conveniences: Employees can do laundry for free in
company washers and dryers . Onsite hair cuts, locker rooms,
a massage room, child care, onsite notaries and five onsite
doctors available for employee checkups, free of charge.
 Stretching the limits: At Google you can work out in the
gym; attend subsidized exercise classes; get a massage;
study Mandarin, Japanese, Spanish and French.
 User-generated content: Google engineers are
encouraged to contribute ideas to the business, but nontech
ideas Googlers dream up have a shot at adoption as well.
 Pets allowed: Dogs are a regular part of the Google
atmosphere.
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 Search and enjoy: Employees enjoy the
"college-like" atmosphere at Google.
 Line in the sand: A beach volleyball pit is an
unusual sight on a corporate campus - unless
you're a Google employee.
 Climbing the corporate ladder: A rock
climbing wall is one of the fun activities on the
Google campus.
 Hanging Around: Work is such a cozy place that
it's sometimes difficult for Google employees to
leave the office.
 Keeping pace: Employees participate in the
four-legged holiday race, a charity race held on
campus.

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 Overview

 Designing the Benefits

 Benefits Administration

 Trends and issues

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 Absence recording
Absence can be recorded electronically or on paper.
Increasingly large numbers of employers are implementing
systems that allow employees or their managers to record
absences themselves.

 Enterprise resource planning (ERP)

ERP software systems integrate key business processes of
organizations into a single software system that allows
information to flow seamlessly throughout the organization.

 Financial calculators
Financial calculators allow employees to calculate the value
of their own benefits, pensions and share options.

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 In-house administration
This is when the benefits are administered by the employer
(usually the HR department), rather than outsourced to an
external administration company.

 Intranet
A network based the Internet belonging to an employer,
accessible only by employees. An intranet's websites look
and act just like websites on the internet, but the firewall
surrounding an intranet prevents unauthorized access.

 Online administration
Administering benefits via the internet, where the software is
held by a third-party administrator.

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 Online holiday booking
Online holiday booking allows employees to access their
holiday entitlement records and to request annual leave
online.

 Outsourced administration
A third-party administrator does the administration of benefits
on behalf of an employer.

 Payroll systems
Software that allows employers or payroll providers to process
pay information for workforces.

 Self-service administration systems

These allow employees to access their personal details and
update records such as a change of name or address.
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 Overview

 Designing the Benefits

 Benefits Administration

 Trends and issues

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 The trends that employee benefits include:
 Increasing health care costs have driven employers to seek
innovative cost control solutions such as disease management,
enabling Internet-based health care tools, establishing a
wellness campaign
 More number of employers are offering a defined contribution
plan.
 Most of the administration of benefits is moving online.
 Outsourcing of benefits continues to appeal.

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 The issues shaping the benefits design:
Improving the perceived value of the benefits
package.
Making the benefits more cost-effective.
Communicating the benefits.
Improving the staff engagement levels.
Matching benefits to employee needs.
Complying benefits to legislation.

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PG Centre, VTU Belgaum