As any HR manager dealing with the subject quickly discovers, there is no template for designing or running the perfect employee benefits scheme. Each workplace will demand different solutions, and so-called best practices aren’t always the perfect solution for every employer “One size does not fit all!”
The purpose of this book which is created after dealing with many of our clients in different sectors and after implementing many strategies in our own company is to help understand and rationale involved in deciding the structure of Employee benefit policies.
Rationale:- Compulsory by law:
Many of the companies want to offer only the bare minimum benefits package which is made compulsory by law. Those policies are typical:
- Employee State Insurance
- Provident Fund
- Workmen compensation
This is typically construction companies, manufacturing, hospitality companies who operate on a very low margin and where the resources available in the market are plenty.
Rationale: All other peer groups are offering so we should also offer
Group Health Insurance or Group Mediclaim – This covers your Employees and their dependents hospital bills. This is probably the most discussed and highest in terms of the budget among all other policies.
The above three are the most common components for the Employee Benefits Insurance offered by most of the companies in ITES, IT, and financial sectors.
Rationale: Traditional Not much popular:
Further, some of the companies look at offering additional benefits like NPS, superannuation, Leave encashment, etc., typically Public sector Companies or some old and big private companies.
Some of the new benefits which got recently popular are:
Holiday trips on some special occasions like completing some specific tenure, or paid holiday on the wedding, work from home, flexible hours, pick and drop from home and office, parenting leave, daycare crush for new mothers, Health tests, etc are other new age benefit policies.
Then What is the Right rationale?
The fundamental reason for offering any employee benefit policies ( after taking care of all the policies made compulsory by law) is to understand what can help in increasing the happiness of employees?
eight questions which will help you to identify the areas are – what can be done to
Will it Increase connectedness among peer groups?
Will it create moments of positive emotions in the workplace?
Will create a culture of acknowledging others and gratitude
Will create reasons for celebrations
Will help them to identify their bigger purpose and live for it.
Will help them grow their IQ
Will make them more healthy?
Will it give them more security?
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