Benefits & Services - Meaning & Types of Benefits

Benefits are membership based rewards offered to all employees regardless of performance.

• It should not be expected to motivate employees.

• Absence of adequate benefit can contribute to employee dissatisfaction and increased absenteeism and turnover.

• Benefits: Something for everybody

Types of Benefits

There are only two types of benefits as following:

1. Legally Required Benefits: Certain benefits must be supplied by the organizations for its employees, regardless of whether it wants to or not. Such as social securities, unemployment compensation, workers compensation, disability.

2. Voluntary Benefits: Rest period, holidays-dashain, tihar, vaccations-paid leave, sick leave, leave of absence - 14 days, pension & gratuity progarmmes, insurance, study leaves etc.

Services:

Those facilities which is provided by the organization at no cost to the employee or a significant reduction from what might have to be paid without the organization’s support. Such as company sponsored events, counselling, cultural activities, credit unions, housing, free tea/coffee, discount, company picnic, educational assistance etc.

Cafeteria Style of Benefits: The cafeteria approach allows employees to pick and choose those benefits that are desirable. Core benefits are provided to all employees, remainder of the money to be spent on benefits left to the decision of each employee.