It helps in employee satisfaction and also brings industrial harmony.
To increase productivity and quality.
To ease out union problem
Problems in Administration
The main problems in indirect remuneration is a lack of employees participation .
Once the fringe benefit programme is designed by the company employees have little discretion.
For example, the pension scheme is granted to all the workers. Yonger employees see pension as a distant and largely irrelevant but for older employees it is useful. The lack of knowledge about the benefits often cause confusion and dissatisfaction about their fringe benefit package
Employee leasing are arrangements in which businesses lease their employees through an outside contractor that attends to the various personnel-related activities commonly associated with human resources management.
Employee leasing allows you to concentrate on the parts of your business that you do best. By not having to focus on the usual responsibility of managing your in-house personnel, you have more time to focus on your company's core competencies, such as meeting and acquiring new clients or coming up with marketing ideas for your business. In addition, employee leasing frees you from worrying about employment policy and procedure issues.
Employee leasing allows you to reduce risk and liability in your company, usually present in managing and training in-house employees. Since most employee leasing companies specialize in a particular field, you are assured that you are hiring experts in their own field.
These employee leasing companies also have account managers, trainers and quality assurance specialists who support your leased staff through the course of your project.
These key people help your leased personnel perform the assigned tasks to the best of his ability through training, feedback, progress reports and even answering whatever work-related questions you may have concerning your leased staff.
Employee leasing allows you to save on employee benefits. You pay a fixed monthly salary per leased staff member to the employee leasing company.
In some cases, you may elect to give the leased employee performance incentives in the form of cash if he meets or exceeds his project quota.
Some employee leasing companies encourage their clients (in this case, you) to add a bonus check on top of the leased employee's salary either through the staff leasing company or by sending the money or check directly to the employee; however, it is the duty of the employee leasing company to shoulder your leased employee's health insurance, paid leave, sick leave and other employee benefits you normally pay in-house employees.
How to Create Effective Employee Benefit Programs?
Creating effective employee benefit programs typically involve the human resources department. They store and maintain hiring information and distribute benefit packages within a company.
Therefore, any manager looking to create effective employee benefit programs must consult with them to ensure that it can be implemented based on the budget constraints provided to them by the finance and accounting departments.
Learning what the employees want and measuring the company's return on investment helps to create effective employee benefit programs that both employers and workers can live with.
Find out the needs of your workers. Take a survey of the employees. Have them rank in order of importance their work-life balance values. For example, workers may desire a more flexible work schedule rather than a monetary raise. This could be included within the basic federal mandated benefits, such as disability insurance.
Provide an open forum to discuss feedback from employees. In some cases, verbal comments generate better information because of the opportunity to elaborate. You can learn the reasons behind the survey results. Perhaps, there are personal issues that a better work-life balance can effectively improve with a good benefit program.
Align the benefit programs to protect the financial interests of the employees. Retirement, health care and disability are the common benefits granted to workers. Usually, you must go beyond the regular benefits and incorporate a program that has strategic incentives. For instance, tuition reimbursement could be an effective employee benefit program to acquire, retain and motivate employees.
Measure the return on investment for the bottom-line. Calculate this by using a spreadsheet or online calculator. You must know your current status and estimate the increase in profits, productivity, etc. Look for online research statistics and case studies from companies within your industry that implemented similar benefit packages. Find out the long-term company benefits, such as higher productivity and lower turnover, for having shared more perks