- What are employee benefits?
- What is the importance of Employee Benefits?
- What are the types of employee benefits available in India?
- List of 4 Major Employee Benefits in India
- Employee benefits offered by the best companies to work for in India
- How to set up an employee benefits program at your company?
What are employee benefits?
Employee benefits were referred to as ‘fringe benefits’ or ‘perks’ in earlier times. They are the non-financial benefits that are offered to the employees apart from their salaries. These benefits can be mandated by laws at some places or can be provided by the employers voluntarily at some places. These employee benefits can include paid vacations, health insurance, life insurance, retirement benefits, gratuity, etc.
As an employer, you would feel that employee benefits will make your employees feel satisfied, content and they would remain with your organization. Providing employee benefits can work as an effective strategy to retain the talent within your organization.
1. Employee benefits are not given to the employees for any specific performance but rather these benefits are given to employees for boosting their interest in the work and make their work even more productive.
2. These benefits given are meant for all the employees and are not specified for any particular group or team.
3. Employee benefits do not take into consideration the merit or non-merit of any of the employees and are meant for making the employees feel valued.
What is the importance of Employee Benefits?
1. Talent Retention Strategy
Employee benefits play a very crucial role in retaining the talent of your organization. By providing employee benefits to your employees, you are making your employees feel that you care about their needs and you are valuable for them. This will help you in keeping them with your organization for a longer period.
2. Loyalty promotion
When you are offering employee benefits to your employees, your employees are likely to be more loyal to you. With your package of employee benefits offered, the probability of your employees searching for opportunities outside will reduce. They will prefer remaining with you and working with you. So, employee benefits improve the scope of your employee’s being loyal towards you.
3. Increasing focus on work and productivity
Usually, it is a general observation that most employees are worried about their finances and are under financial stress. As a result, they are not able to focus on their work completely and this would affect the productivity in your organization. So, by offering employee benefits for your employees you are helping them to have less financial stress and in turn, they can focus on their work and improve the organization’s productivity.
4. Reduction in absenteeism
Another important advantage of employee benefit is that it helps in reducing absenteeism in your organization as your employees would be able to lower down their stress level which can arise due to financial issues. Once your employees are in good financial health, they will not skip working and would be present at the workplace. This will also increase the productivity of your organization.
5. Better recruiting
When you are offering employee benefits to your employees, you are paving the path for attracting more candidates towards your organization. For employees, employee benefits are of equal importance as that of their salary. So, they will prefer joining an organization which offers a good salary and also good employee benefits.
6. Promote employee health and wellness
By offering employee benefits such as health insurance, life insurance, preventive doctor care, free health checkup, etc. you are helping your employees in the maintenance of good health conditions and promoting their wellness even. This will make your employees more satisfied with your organization.
7. Beat your competitors
Offering employee benefits can also be used as a strategy by you to beat your competitors in the market. You can include some additional features in your employee benefits that you are offering which are not being offered by your competitor and hence, give a tough competition to your competitors.
What are the types of employee benefits available in India?
Employee benefits in India can be classified into two major categories depending upon the duration of timing involved in the settlement.
1. Short-term employee benefits
These are those employee benefits which need to be settled completely within a period of 12 months post the end of the reporting time in which the employee has rendered the services. Those employee benefits which can be considered as the short-term employee benefits are listed below.
a) Salaries, wages and social security contributions
When an employee has offered services to your organization, salary and wages are the standard receivables of your employees. The social security contributions in India are governed by the Employees Provident Fund and the Miscellaneous Provision Act. The schemes under this are the Employee Provident Fund (EPF) scheme and the Employee’s Pension Scheme (EPS) into which there are equal contributions made by both employees and employers.
Also read: Employee Provident Fund – The Complete Guide
b) Annual leaves and sick leaves which are paid
Many organizations provide the benefits of availing paid annual leaves, sick leaves, maternity leaves, etc. which can be carried forward to the next year and even encashed while leaving the organization.
c) Profit-sharing and bonus
Many organizations offer their employees the benefit of sharing the profit of the organization in the form of bonus if they have been with the organization for a specific period of time.
d) Benefits which are non-monetary in nature
The benefits in this category include health care benefits, housing, company car, food coupons like Sodexo, conveyance facilities like shuttle for current employees, etc. which can be of great importance to the employees.
2. Post-employment benefits
These are the benefits which are available to the employees after their retirement from rendering services to the organization.
a) Pension and lump sum payments on retirement are one of the common post-employment benefits provided by most of the organizations.
b) Some other post-employment benefits include post-employment life insurance and post-employment medical facilities.
3. Long-term employee benefits
The other long-term employee benefits include the below-mentioned benefits such as
a) Long-service leave or sabbatical leave during which the employees have the job guarantee even if they are not being paid.
b) Long-service benefits or jubilee for employees
c) Long-term disability benefits
d) Benefits associated with termination in the form of gratuity.
Other employee benefits available in India
Let us have a look at some of the other employee benefits which are available in India.
The retirement benefits or retirement programs include the below-mentioned employee benefits.
a. Employee’s Provident Fund (EPF)
This is a part of the social security contributions in India and is governed by the Employees Provident Fund and the Miscellaneous Provision Act. The schemes under this are the Employee Provident Fund (EPF) scheme and the Employee’s Pension Scheme (EPS)
According to the laws and regulations, the employees working in organizations to which the PF Act is applicable have to contribute a fixed rate of 12% from their salary and have the option of paying up to 24% i.e. an additional 12% for this. The employer would also contribute of 12% of the basic salary of an employee. Out of the 12%, 8.33% is used for the pension part of the provident fund i.e. Employee Pension Scheme and the remaining 3.67% is contributed towards the Employee’s Provident Fund Account.
b. Voluntary Provident funds (VPF)
This is also a form of the traditional savings scheme under the Employee’s Provident Fund. In the case of the Voluntary Provident Fund (VPF), the employee would determine the fixed contribution which needs to be made for the scheme every month. The employees would make their contribution voluntarily and this scheme is also known as the Voluntary Retirement Fund Scheme. Since the VPF is an extended version of the EPF, only those employees who are receiving salary every month can invest into this savings scheme. This savings scheme does not include the compulsory 12% contribution that is made by employers in the case of the EPF. The interest rate of this fund is determined by the Government of India in a yearly manner which is 8.65% per annum currently and this scheme also has a lock-in period of 5 years. The employees can even contribute 100% of their basic salary along with their dearness allowance towards the VPF. It is quite easy to open a VPF account and the risk involved is also minimal in this scheme.
c. Private plans
The private retirement plans for employees consist of the below-mentioned benefits for employees.
i. Private Provident Fund
Many companies opt out of the EPFO, take the administrative burden of the funds and set up their provident fund trusts to manage them in-house in the form of Private Provident Fund. Many reputed corporate organizations in the country opt for the in-house PF trust as it is quite employee-friendly and also a matter of pride for the employers as well as employees. The Private Provident Fund offers better returns to employees and would also offer benefits like early withdrawal and loan facility against the deposit. However, there can be some issues related to the management of funds in case of in-house PF trust which calls for the employees to always remain vigilant about their funds.
ii. Superannuation plans
These plans are optional benefit plans associated with retirement of employees and are offered to some selected employees. Many organizations use superannuation plan as a long-term incentive plan for the managers. These plans are not much popular with employees as they have a longer vesting period, are not portable and the money can be withdrawn only after a certain age.
Gratuity is mandated as an employee benefit by the Payment of Gratuity Act. According to this Act, employees must obtain a lump-sum payment of 15 days for each year of service. Employers can avail a tax benefit of up to Rs. 1,000,000 by paying this benefit to their employees.
An employee can be eligible to obtain gratuity only in case of the below-mentioned instances.
- The employee must be eligible for superannuation.
- If the employee resigns after he has worked for 5 years with a specific employer.
- In the case of retirement of the employee, he is eligible to obtain gratuity.
- If the employee suffers from any disability due to prolonged illness, accident or if the demise of the employee occurs then gratuity can be obtained.
The gratuity for an employee can be calculated by the given formula:-
Here, N=Number of years of service done for the company.
B= Salary that was last drawn plus by the employee plus the Dearness Allowance.
The taxation of the gratuity obtained by the employees is based upon the 3 major categories.
- The gratuity obtained by Government employees i.e. Central Government/State Government or local authorities will be tax exempted.
- An employee who obtains gratuity and whose employer is covered under the Gratuity Act will have his withdrawn salary of the last 15 days exempted from Income Tax.
- An employee obtaining gratuity and whose employer is not covered under the Gratuity Act will have the minimum among the below-mentioned 3 amounts exempted from Income Tax.
- The actual amount which is being received as gratuity.
- Rs. 10 lakhs.
- Half a month’s salary calculated for every year which the employee has completed with the employer.
iv. Pension plans
Pension plans are very few in private organizations. However, certain industries like railways, mines, banks, plantation, and etc. offer pension plans for their employees.
Pension plans can also be called “retirement plans” which generally means the investment of some portion of an employee’s income into a plan that can provide regular income after retirement. In our country, pension plans have mainly two stages i.e. the accumulation stage and the vesting stage. During the accumulation stage, the employee would pay the premium until he reaches the age of retirement. In the second stage, the retired employee obtains the annuities till his death or the death of his nominee.
One of the common employer-related pension plans of our country is the National Pension Scheme (NPS). The National Pension Scheme can be considered as an initiative by the Indian Government to motivate individuals to make investments for their future by systematic savings. The NPS was started in the year 2004 and it was made applicable to all new employees under the Central Government except those employed in the Armed Forces. However, in May 2009 NPS was made available to all citizens of India for making investments voluntarily. Furthermore, in December 2011 the Pension Fund Regulatory Development Authority (PFRDA) introduced a new model of NPS which made employees of corporate sectors of the public and private enterprises eligible to invest for their future savings. By this, the employees of the corporate sector could avail of the benefits of the NPS system via their employees.
With the NPS, the savings of employees would be invested in the equity and the debts market depending on the preference of the employee. This will allow the employees to withdraw 60% of the total fund at the retirement time as a corpus and the remaining 40% can be used for the purchase of an annuity. The amount obtained on maturity is exempted from Income Tax.
d. Health care benefits
Health care benefits are one of the best and expensive employee benefits which are available for the employees. Mostly, the health care benefits for employees include reimbursement of medical bills, group health insurance policies, discounts for medical care, etc. Gradually, employers are shifting the trend towards providing high-deductible health insurance plans or co-pay health insurance plans for their employees.
Most of the employers provide medical cover to its employees by health insurance policies which can be termed as indemnity products. The coverage provided by the policies covers the employee, his spouse, and children. Some employers also provide insurance policies that offer cover for the employee’s parents as well. Usually, the health insurance coverage provided by the employers has a minimum sum assured of around Rs. 2, 00,000 for each employee. Many corporate organizations also offer corporate buffet amount which can be used if the employees have used up the entire sum assured.
The cost of medical facilities has been rising significantly in India and to have access to comprehensive coverage, employees also make complete utilization of the benefits provided by the health insurance plans. However, insurance providers have also used strategies like applying sub-limits, enhancing fraud checks, etc. to control the insurance costs. Also, there is an unlimited rise in premium which has led employers to bear the unexpected costs every year or face dissatisfaction of employees. Employers must try to find out alternate strategies that would ensure the proper management of health benefits in corporate organizations.
Furthermore, the employees can avail of tax-free reimbursement of expenses involved in hospitalization, drugs, and treatment up to an amount of Rs. 15,000. When the medical bills for the services provided are to the employers by the employees, then the employee’s taxable income can be reduced by either the total bill value of Rs. 15,000 whichever is least amongst both.
e. Wellness programs
Modern day employers have started realizing the importance of understanding the needs of the employees and their wellness requirements. Various wellness programs such as disease management, health management, yoga and meditation services, physiotherapy sessions, post-natal and pre-natal care, etc. are being provided by the employers which are highly beneficial for the employees.
Employers have now started understanding the importance of employee wellness and are now offering preventive health check-up programs for employees, health risk assessments and memberships to the gym as well. One important aspect which employers must consider while providing these wellness benefits to its employees is the quality of services provided by the service providers. If the employers are making use of the internal staff for evaluation of these vendors or insurance brokers to procure good vendors for providing wellness programs to employees then this evaluation might not be a successful one. Employers should ensure that this evaluation is done by those who have the specialized skills to understand these wellness programs and their benefits.
For the funding of these wellness programs, there are usually the below-mentioned ways.
- Partial funding is done by the employer and the remaining funding to be done by the employee.
- Complete funding to be done by the employer.
- The employer negotiates with various service providers and gets discounts for its employees. The complete cost is paid off by the employees but the price is negotiated ones.
Other miscellaneous benefits
You might want to read: Employee allowances – taxable & non-taxable allowances for salaried employees in India
a. Food coupons
Many organizations have the provisions for providing lunch to it employees and this has led to the trend of providing food coupons to the employees. These meal coupons like Sodexo can be often used as a tax-saving instrument by the employees.
Flextime is beneficial for the employees of an organization to maintain a healthy work-life balance. This also helps in improving the productivity of the organization. However, it leads to certain communication problems and can result in hostile behavior by the employees.
Flextime is being mostly offered by employers who are specialized in the fields of Information Technology (IT) or Information Technology Enabled Services (ITES). The benefit of flextime is being offered to those employees who have spent a certain amount of time with the organization and it is also provided under mutually acceptable policies. However, with flextime benefits it has also been observed there is a problem of communication among employees. So, employers are now using policies by which employees can avail flextime benefits if they put forward proper business cases and how they plan to manage communication within the team.
Many organizations make it easier for the employees to commute by providing shuttle or cab services for their employees. This provides convenience and safety to the employees even when they are travelling late due to work related purposes.
- Company car lease policy can be said to be a very tax-efficient method by which an employee’s salary structure can be managed. Mainly this benefit is provided to the organization’s senior management at specific salary levels.
- Cab or shuttle service for employees is an effective way of ensuring the safe and convenient conveyance of the employees to the office. Usually, the organizations today are providing support and services to its customers across all time zones in a 24×7 manner. So, the employers have provided cab/shuttle facilities to their employees so that they can reach the office at any time without any hassle. Many organizations have started offering bus services for the employees rather than door-to-door services provided by cab as it would more economical for the organization as well.
d. Leave encashment
Employees can avail the benefits of paid leaves for various reasons such as annual holidays, sick leaves, maternity leave or paternity leave, short-term disability leave, etc. Paid leaves can be accumulated by the employees and then can be carried forward for use in future if they have not been used in the current year. Moreover, employees in most of the organizations enjoy vesting of their accumulated paid leaves i.e. cash payment for the unused paid leaves while leaving the organization.
e. Financial education
Many organizations in India have started introducing financial wellness programs for their employees. These programs would help their employees in having a clear idea on successful management of finances, fulfill short-term financial requirements along with planning for achieving long term goals, to overcome the anxiety related to retirement and even lower the level of financial stress in the employees. By this, the employees would be able to focus on their work well and this would increase the productivity of the organization.
Future trends on employee benefits
Regarding the benefits that are being offered to the employees, employers have certain areas on which focus must be given.
a. Retirement benefits
From the perspective of retirement benefits, one of the major changes which are occurring in the National Pension Scheme (NPS). The regulator of NPS has announced an option of Payroll deduction by which an employer can also make contributions to the NPS on behalf of his employee and can claim these contributions as business expenses. Also, employers can be able to claim personal tax exemption on the contribution that has been made by his employer on his behalf.
b. Retirement education
There are not many retirement plans which are sponsored by employers. So, it is the responsibility of the employees to think about their financial needs and plan accordingly. Retirement education would be highly beneficial for employees of all age groups in an organization such as for a newbie to learn the importance of starting to save early, for a mid-career manager who should think about his retirement and for an employee who is almost about to retire must take immediate steps for his post-retirement savings.
c. Health benefits
The future of the health benefits that are being provided to the employees depends on two major factors i.e. the ability to control the costs of premium for the employers and the cost of the claims for the organizations which are self-insured.
Employers in India have already started the method of co-payment as an effective measure to reduce the number of claims because the majority of the claims are of a very small amount. The insurance providers are also trying hard for controlling the costs by introducing clinical review processes and also by creating different underwriting rules.
Moreover, many employers usually offer a hospitalization cover which is based on indemnity without even understanding the needs of the employees. Employers must perform internal surveys to have an idea about the needs and concerns of the employees. These surveys would also be helpful for employers to focus on the utilization of their budget in the right direction for employee benefits.
d. Flex benefits
The flex benefits offered by employers have certain advantages for the employees.
- The employer can derive values from the financial commitment to the benefits which have been controlled by the employees.
- Due to the higher level of employees being satisfied, tax efficiency and various commercial advantages the recruitment and retention rates of employees in the organization would increase.
Read more about employee retention and it’s strategies
So, the organizations should consider a strategy for employee benefits that would be most appropriate in terms of satisfaction of the employees, control of expenses and for the growth of revenue.
List of 4 major employee benefits in India
Companies in India offer more and better benefits to their employees than those in the Asia Pacific (APAC) region in general, says a study by Willis Towers Watson.
Let us list down some other major types of employee benefits available in India.
1. Career growth benefits
The career growth benefits help the employees in their professional growth. If your employees are interested to learn, they will find these benefits very attractive. When you are making provisions for these benefits for your employees, you are putting forward your interest in the learning and growth of your employees. Since you are pro-actively investing in the learning of your employees, it shows your employees that your main focus is on building a long-term association with your employees.
Some of the examples of career growth benefits in an organization can be listed as
a. Educational assistance or tuition reimbursement
b. Assistance provided for executive programs
c. Rewards offered for obtaining additional certifications – You might want to read about Employee gifting, rewards and recognition
d. General training courses pursued by employees will be reimbursed
e. Mentoring and counseling facilities for employees
2. Work-life quality benefits
Those employee benefits which help your employees in maintaining a healthy work-life balance are known as work-life quality benefits. The work-life quality benefits help the employees in an organization to create a balance between their work and personal lives thus enhancing their quality of life. When you are providing these benefits to your employees, you are making your employees feel assured that you care about their quality of life and respect their personal space.
Some of the benefits which can be considered under work-life quality benefits are mentioned below.
a. Parental leaves which can be both paid and unpaid
b. Flexible hours of work
c. Daycare facilities for employees with kids
d. Vacations in regular intervals
e. Financial assistance for any eldercare or daycare facilities
3. Incentive benefits
Incentive benefits are those benefits that will help in the financial growth of your employees. These benefits are mostly given to the employees when they have reached a pre-defined goal. These benefits give motivation and encouragement to the employees to go the extra mile and achieve their goals. By offering incentive benefits to your employees in your organization, you are also increasing the organization’s productivity and making your employees satisfied.
Some of the benefits that are covered under the Incentive benefits can be listed below.
a. Pension plan
b. Assistance in obtaining a loan – You might want to read our quick guide to understanding personal loans for salaried employees
c. Employee stock ownership plan (ESOP)
d. Housing and car from the company
e. Organization’s profit-sharing scheme
4. Fringe benefits
Fringe benefits can be referred to as those benefits which are offered to the employees above their salary. These benefits are mainly associated with the nature of the job the employee is doing and the benefits are provided according to the needs of the employee. Fringe benefits can be either monetary or non-monetary and also vary from organization to organization. Fringe benefits act as additional compensation and will help employers to retain their top-performing employees in a competitive market. By offering these benefits, you can even attract good and talented employees towards your organization.
Some of the benefits included under the category of fringe benefits are mentioned below.
a. Leave with pay
b. Housing allowances and Meals
c. Health and dental insurance
d. Fitness training and employee discounts
e. Achievement awards
Employee benefits offered by the best companies to work for in India
Let us check out some of the employee benefit types offered by the different organizations in India.
Employee Benefits in Google India
Let us check out the Google employee benefits and the advantages enjoyed by the employees of Google.
The employees at Google India have very good feedback about their workplace environment. They are extremely happy with the work culture and the environment which is quite motivational for them. There is flexibility in the work schedule and various recreational activities as well. Several indoor and outdoor games are available for making the minds of the employees refreshed. The highly advanced and well-equipped gym provides an opportunity for the employees to think about their health and wellness. There are celebrations and recreations on special occasions and employees can bring their family along with kids to the workplace on specified days. This work environment helps the employees to feel rejuvenated and hence focus more on their work.
Employee Benefits in TCS India
TCS employees have quite positive reviews about their organization and are content with the work culture, organizational policies and employee benefits provided to them. Out of the numerous benefits which are provided by the TCS management to its employees, some of the most common and popular benefits are paid sick leave for employees, paid holidays or vacations, reimbursement for educational training or certifications, health insurance schemes, and mediclaim facilities, life insurance schemes for employees, etc. In addition to these benefits, some other benefits make it easier for the employees to maintain their work-life such as flexible time schedules, gym, and health club memberships, permissible casual dressing and many more. These benefits make employees feel less stressed about the work and workplace environment. They like coming to the workplace and enjoy their work. This is quite beneficial for the organization in terms of productivity and business.
Employee Benefits in RMSI
The RMSI is an IT company that is based out of Delhi and is highly appreciated for its various employee benefits programs. The organization organizes various counseling sessions for its employees such as sessions on parenting, relationships, child psychology, self-defense, etc. These sessions are quite essential for the mental wellbeing of the employees and the organization proactively takes care of these requirements.
Moreover, various health initiatives are organized for the employees especially for the women employees such as health initiatives for breast and cervix cancer, thyroid tests and other medical check-ups. Various recreational activities are also available for the employees such as sessions for painting, acting, movie making, guitar classes, Zumba classes, etc. There are music bands and photography clubs in the organization as well for those employees who would like to follow their passion for music and photography.
Employee Benefits in Infosys India
Mostly, the employees in Infosys are all praises for the ambiance of the organization. The work culture is good and a flexible schedule is helpful for the employees. The health insurance benefits which are available for the employees of Infosys are quite beneficial and include health insurance, life insurance, dental insurance, vision insurance, disability insurance, etc. The retirement benefits are also very good and include a retirement plan and contribution pension plan. Moreover, employees have a very good scope of learning new skills at Infosys and can avail reimbursements for training and certification. Also, recreational facilities like a health club, gym, library, yoga classes, etc. are available within the campus for the employees.
Employee Benefits in Amazon India
Now, let us have a look at the employee benefits Amazon offers for its employees.
Amazon India provides a lot of employee benefits along with a very conducive work environment. The management of the organization is concerned about the health and wellness of its employees. The health insurance schemes, dental insurance schemes, vision insurance schemes, and life insurance schemes offer great benefits for the employees. The employees can also enjoy the various benefits of excellent pension plans and retirement plans. Moreover, employees also are rewarded with a performance bonus which can act as a motivating factor for the employees. There is a flexible schedule available for the employees and they can obtain benefits like vacation and paid time off, sick leave, bereavement leave, etc. Also, there are several other perks and benefits available for the employees such as free gym membership, free meals, employee discounts, conveyance facilities by the organization, etc.
Employee Benefits in Accenture India
Some of the major benefits available for the employees of Accenture are discussed below:
Accenture provides a ‘Total Rewards’ package for its employees which comprises compensation along with other benefits and support for the professional growth of the employees. Moreover, there are numerous programs offered by the organization which helps the employees to maintain a good professional career and healthy living as well.
Accenture provides its employees with a large number of insurance plans which can help in providing coverage to the employees. The insurance schemes at Accenture include health insurance scheme, dental coverage, vision insurance, disability coverage, life insurance schemes, etc. These insurance schemes help in providing comprehensive coverage to employees. In addition to these insurance schemes, the organization provides other options and avenues for saving to the employees. There would be several financial rewards and perks available to the employees at Accenture by various financial programs like Employee share purchase program, Accenture discount directory, Flexible Spending Accounts, etc. Employees can have the opportunity to maintain a healthy work-life balance at Accenture due to flexible time schedules, vacations and paid time off, etc. Furthermore, there are several employee assistance programs, online fitness programs, wellness programs, etc. for the employees to lead a healthy lifestyle.
Employee Benefits in Reliance India
For the management of Reliance, employee satisfaction is one of the major organizational goals. There are various Employee wellness programs and employee assistance programs available for the employees to help them in leading a healthy life. There are other benefits like flexible timing schedules, work from home options, etc. which are helpful for the employees in maintaining their work-life balance. Moreover, there are other benefits like fitness and spa facilities, sports facilities, yoga memberships, etc. which are of great benefit for the employees. The ambiance at the workplace makes the employees more enthusiastic about their work.
Employee Benefits in Hindustan Unilever
The employees at Hindustan Unilever can avail various benefits related to health insurance and hospitalization insurance. Apart from this the organization and its management are quite concerned about the wellness of its employees and provide facilities like a yoga room and meditation room for its employees.
Moreover, the employees can also have the facility of reading in the office during work breaks by using the library present in the office. Also, the organization provides facilities in obtaining good quality education at low-cost in the Aditya Birla schools group for its employee’s children.
Employee Benefits in the Tata Group India
The employees at Tata Group enjoy numerous benefits such as various health insurance schemes, life insurance schemes, wellness programs, and employee assistance programs, etc. The work environment and organizational policies are quite good and thus create an employee-friendly environment in the workplace. The management of the organization is easily approachable and there are forums where employees can get the opportunity to discuss their problems and share their opinions on various issues. The recreational facilities available for the employees are quite good and help in rejuvenating the employees. There are benefits like financial programs and flexible work timings for the employees.
Employee Benefits at American Express
The American Express is also known as the Amex. Here the employees are counseled and trained to maintain a perfect balance between their personal and professional lives. The organization has a program known as “Smart Savings” which would help educate the employees about their long term savings.
In addition to these benefits, there are several other benefits associated with pregnant women and other potential leaders of the organization.
Employee Benefits at Starbucks India
The organization is quite well known for its benefits and compensation that it provides to its employees. The total rewards package consists of the base pay along with the bonus, the benefits, retirement savings, and the perks for the employees.
The major benefits provided by the organization to its employees include health insurance, savings plan, parental leaves, paid leaves, commuter benefits, education assistance, etc. The health coverage provided for Starbucks employees includes vision, dental and medical plans. It also includes other insurance schemes like life insurance schemes, disability and accident coverage, etc. The savings plan includes retirement plans, participation in equity programs, SIP, etc. The employees can take paid offs from work in the form of sick leave or family time off. Employees who would be becoming new parents can opt for parental leaves and there are reimbursements also for family expansion. Moreover, there are other benefits available for employees like conveyance facilities and educational reimbursement.
Employee benefits at Kotak Mahindra
Kotak Mahindra is known for its coolest benefits that it provides to its employees. Apart from the basic facilities and benefits related to employees, Kotak Mahindra provides really exciting benefits for its employees. Mass screenings of Bollywood and Hollywood movies is one of the coolest benefits a corporate organization can offer its employees. In addition to this, annual family days at office, indoor and outdoor games for employees, yoga, and naturopathy sessions are some of the other exciting facilities offered by the organization for its employees.
We have compiled a list of the top 20 startups in India to work for. They include companies that provide very good employee benefits.
How to set up an employee benefits program at your company?
Let us check out the steps by which you can set up an employee benefits program at your organization.
1. Understand the benefits objectives and budget of the organization
This is an important step as you should identify the objectives of the benefits you are offering to your employees. This will help make a design of the employee benefits program for your employees. You can understand the needs of yourself as an employer and the needs of your employees as well. Moreover, before designing the program you should also know in detail the budget your organization has for this employee benefits program. Also, you should keep on revising the employee benefits program regularly.
2. Assess the needs of the employees
In the next step, you need to assess the needs of the employers so that you would be able to design the employee benefits program according to the needs of your employees. You can use some basic and common techniques for assessment i.e. personal interviews, questionnaires, surveys, etc. This will help obtain your employee’s needs and also their opinion which can make them more satisfied.
3. Formulate benefits plan program
After you have assessed the needs of your employees, you can begin formulating the employee benefits program. The needs of employees that have been obtained are to be used in this procedure and you can design the program based on the priority of the needs obtained from your employees. You will have to also keep your benefits budget in mind and while designing the employee benefits program you can align your benefits with your budget.
4. Communication of the benefits plan program to your employees
When your employee benefits program has been designed, the communication about the plan has to be done to your employees. If the employee needs had been obtained by you and those needs have been the priority while designing the plan, then your employees will appreciate the plan and this will lead to employee satisfaction. A good communication plan can be very helpful during the benefit plan communication. Your communication plan should provide a clear understanding of the benefits to your employees and should encourage your employees to make wise use of the benefits.
5. Periodic evaluation of the program
In the benefits management process, you should review the benefits plan periodically. Periodic assessment of the employee benefits program will help you in understanding if the program is being successful in meeting your employee’s and your requirements. Certain changes should be made into the employee benefits program regularly depending on the changes in the economy and business.
Hence, employee benefits in India are important as they are a part and parcel of the business competition. By these employee benefits, you can differentiate your business from that of your competitors. You can assure your employees about being concerned about their well-being. When your employees are satisfied, they are more engaged and more productive; this is, in turn, a benefit for you and the organization.