compensation management

1. FRINGE BENEFITS
BY :-AYUSHI JAIN

2. Meaning:-
Fringe benefits are the form of indirect compensation that are given to an employee in addition to their wages and
salaries.
It is important to understand that they are not related to performance but are given to the employee for just
being an member to the organisation

3. Features:-
• They are given in addition to their wages and salaries.
• Fringe benfits are not linked to the performance or efficiency of an individual.
• Fringe benefits may be voluntary or statutory in nature.
• Fringe benefits are paid to all the employees based on their memebership in the organisation.
• Fringe benefits involve labour cost for the employer and are not meant directly to improve the
efficiency of an employee.
• Fringe benfits raise the standatd of living.

4. Objective:-
• To retain the taleneted personnel in the organisation.
• To protect the employee against the employees various hazards.
• To improve the morale of the employees by satisfying their unsatisfied needs.
• To improve the work environment and the industrial relations.
•
•To develop a sense of belongingness and loyalty among the workers.
• To meet the statutatory requirement.
• To improve the public image of company.

5. Types of Fringe Benefits :-
• Stock options
•Disability insurance
•Paid holidays
•Education reduction
•Retirement planning services
•Life insurance
•Paid time off
•Commuterbenefits
•Achievement awards
•Fitness training
•Employee discounts
•Meal plans

6. Advantages of fringe benefits :-
• It creates the sense of belongingness among the employees.
• It boosts the morale of the employee.
• it increases the engagement of an employee in the organisation.
• It helps in satisfying the needs of an employees.