EMPLOYEE BENEFITS PROGRAMS Meaning:Employee benefits and (especially in British English) benefits in kind (also called fringe benefits,

perquisites, perqs or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. In instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a 'salary packaging' or 'salary exchange' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits. The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve worker retention across the organization. The term perqs (also perks) is often used colloquially to refer to those benefits of a more discretionary nature. Often, perqs are given to employees who are doing notably well and/or have seniority. Common perqs are take-home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, andwhen multiple choices existfirst choice of such things as job assignments and vacation scheduling. They may also be given first chance at job promotions when vacancies exist.

Objectives:It has become increasingly common for firms, particularly large firms, to maintain a lengthy and often detailed list of objectives for their employee benefit programs. The following are the objectives of one such firm: - To establish and maintain an employee benefit program that is based primarily on the employees' needs for leisure time and on protection against the risks of old age, loss of health, and loss of life - To establish and maintain an employee benefit program that complements the efforts of employees on their own behalf - To evaluate the employee benefit plan annually for its effect on employee morale and productivity, giving consideration to turnover, unfilled positions, attendance, employees' complaints, and employees' opinions

- To compare the employee benefit plan annually with that of other leading companies in the same field and to maintain a benefit plan with an overall level of benefits based on cost per employee that falls within the second quintile of these companies - To maintain a level of benefits for nonunion employees that represents the same level of expenditures per employee as for union employees - To determine annually the cost of new, changed, and existing programs as a percentage of salaries and wages and to maintain this percentage as much as possible - To self-fund benefits to the extent that a long-run cost savings can be expected for the firm and catastrophic losses can be avoided - To coordinate all benefits with social insurance programs to which the company makes payments - To provide benefits on a noncontributory basis, except benefits for dependent coverage for which employees should pay a portion of the cost - To maintain continual communications with all employees concerning benefit programs -to ensure that an attractive and competitive total remuneration package is provided which both attracts and retains high-quality staff; -to demonstrate that the company cars for the needs of its employees. Note that these objectives do not include to motivate employees. This is because benefits seldom have a direct and immediate effect on performance unless they are awarded as an incentive; for example, presenting a sales representative with a superior car (e.g. a BMW) for a year if he or she meets a particularly demanding target. Benefits can, however, create more favourable attitudes toward the company leading to increased long term commitment and better performance.