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EMPLOYEE BENEFITS - FIXED & FLEXIBLE (Purpose of Employee Benefits…
EMPLOYEE BENEFITS - FIXED & FLEXIBLE
Definition of Employee Benefits
Exchange in value to the employees as part of their packages for the work that has been performed.
Indirect financial and nonfinancial payments (Non-monetary value) employees receive for continuing their employment with the company.
Purpose of Employee Benefits
Improve employee morale
Enhance quality of work life
Increase recruitment success rate recruitment
Motivate employees
Minimise union-management conflict
Improve overall productivity
Gain a favourable competitive position in industry
Non-Financial Benefits
The Job Content
– interesting, meaningful job
The Job Environment
– basic sound policies, competent supervision, good working colleagues
Work Flexibility
– flexitime, compressed workweek, job sharing, telecommuting
Equity in Benefits System
External equity
Organisation's vs industry pay rates
Internal equity
Employees perceive that they are being rewarded fairly according to the relative value of their jobs.
Gig Economy
Pros for Business
Lower cost
Ability to scale quickly
Diverse pool of flexible workers
Cons for Business
Tight regulations on contractor status
Less reliable workers
Types of Employee Benefits
Flexible / Cafeteria benefits
Purpose
Improvement in QWL (Quality of worklife).
Enhancement of productivity through increase in loyalty and motivation.
Appreciation of the value and cost of each benefit.
Better understanding of the cost and value of the total benefit programme.
Advantages
Giving staff a sense of control.
The provision of benefits becomes less contentious.
Employees may better appreciate the true worth of the benefits package.
Improving staff retention and helping to attracting new talent.
Limitations
Cost factor.
Extent to which benefits can serve as a motivating factor to increase productivity.
Fixed / Legally Required / Mandatory / Compulsory Benefits
The Central Provident Fund Act (CPF)
Withdrawal age
: 55 years
Payout eligibility age
: 65 years (Start receiving monthly payouts from CPF)
A mandatory social security savings scheme funded by contributions from employers (17%) and employees (20%).
The Work Injury Compensation Act (WICA)
Lets employees make claims for work-related injuries or diseases without having to file a civil suit under common law.
Low-cost and quicker alternative to common law for settling compensation claims.
What you can claim for
:
Medical leave wages
Medical expenses and lump sum compensation for permanent incapacity or death
The Employment Act
Purpose
to set out the basic rights and duties of employers and employees
Covers
Employees working under a contract of service with an employer and also local and foreign employees.
Except
Part IV of the Act which provides for rest days, hours of work and other conditions of service, does not cover managers or executives
Includes Statutory Leave Benefits
such as annual leave, sick leave, maternity leave, paternity leave, adoption leave, childcare and extended childcare leave.
The Workplace Safety and Health Act (WSHA)
Aims to
:
Cultivate good safety habits to create a strong safety culture in the workplace.
Decrease risks by making stakeholders accountable for managing the risks they create.
Impose higher penalties for poor safety management and outcomes.
Covers
:
All workplaces, unless exempted.
Responsibilities of stakeholders.
Hazardous substances.
Machinery and equipment
Voluntary / Discretionary benefits
Payment for time not worked
Eg
paid vacations, sick pay and paid time off, sabbaticals
Healthcare
Life Insurance
Employee Services
Subsidised food-services, loans for housing, renovation, car, computers, club memberships, sports and wellness programmes, etc.
Premium Pay
Others
Per Diem
Relocation package