Employee Benefits - Find out what your employees want

Facts:

Whoever says whatever, money/income is ultimate consideration for any employee to shift or change organisation wherever it is located.

40% Indians are cautious about moving to West for jobs due to economic slowdown, which tells that money factor plays a key role in attracting and retaining employees in an organisation wherever it is located. Good salary combined with benefits such as extra allowances and perks are also playing a major role in bringing back professionals to India, according to 25% of the employers in the TimesJob.com study.

--Times of India,9-4-14

The two essentials for every plan

While you might be faced with a variety of requests, experts say that there are two essentials for every plan: medical coverage and a retirement plan. Other coverage such as dental, disability, and life insurance often are considered extras. ---Microsoft

Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perqs or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. Where an employee exchanges (cash) wages for some other form of benefit, this is generally referred to as a 'salary sacrifice' or 'salary exchange' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree.

The employees of the autonomous bodies cannot claim, as a matter of right, the same service benefits on par with the Government employees - Supreme Court

Read judgment below.

In the present case, (Water and Land Management Institute) WALMI being an autonomous body, registered under the Societies Registration Act, the employees of WALMI are governed by their own Service Rules and conditions, which specifically do not provide for any pensionary benefits; the Governing Council of WALMI has adopted the Maharashtra Civil Services Rules except the Pension Rules. Therefore, as such a conscious policy decision has been taken not to adopt the Pension Rules applicable to the State Government employees; that the State Government has taken such a policy decision in the year 2005 not to extend the pensionary benefits to the employees of the aided institutes, boards, corporations etc.; and the proposal of the then Director of WALMI to extend the pensionary benefits to the employees of WALMI has been specifically turned down by the State Government. Considering the aforesaid facts and circumstances, the High Court is not justified in directing the State to extend the pensionary benefits to the employees of WALMI, which is an independent autonomous entity.

Court held that

As per the law laid down by this Court in a catena of decisions, the employees of the autonomous bodies cannot claim, as a matter of right, the same service benefits on par with the Government employees. Merely because such autonomous bodies might have adopted the Government Service Rules and/or in the Governing Council there may be a representative of the Government and/or merely because such institution is funded by the State/Central Government, employees of such autonomous bodies cannot, as a matter of right, claim parity with the State/Central Government employees. This is more particularly, when the employees of such autonomous bodies are governed by their own Service Rules and service conditions. The State Government and the Autonomous Board/Body cannot be put on par.

In the case of Punjab State Cooperative Milk Producers Federation Limited and Anr. Vs. Balbir Kumar Walia and Ors., (2021) 8 SCC 784, in paragraph 32, it is observed as under:-

"The Central or State Government is empowered to levy taxes to meet out the expenses of the State. It is always a conscious decision of the Government as to how much taxes have to be levied so as to not cause excessive burden on the citizens. But the Boards and Corporations have to depend on either their own resources or seek grant from the Central/ State Government, as the case may be, for their expenditures. Therefore, the grant of benefits of higher pay scale to the Central/State Government employees stand on different footing than grant of pay scale by an instrumentality of the State.”

Salary & Pension Are Rightful Entitlements Of Government Employees; Appropriate Interest Must Be Paid For Delayed Payment: Supreme Court of India

[Read Judgement Below]

The State of Andhra Pradesh and Another Appellant(s) Versus Smt Dinavahi Lakshmi Kameswari Respondent(s)

This appeal arises from a judgment and order of the Andhra Pradesh High Court dated 11 August 2020. The State of Andhra Pradesh issued GOMs No.

26 on 31 March 2020 and GOMs No. 37 on 26 April 2020. The backdrop for the orders was the outbreak of Covid-19 and the financial crises which had resulted as a consequence. The revenues of the State of Andhra Pradesh were impacted by the onset of the pandemic.

Court held that "The direction for the payment of the deferred portions of the salaries and pensions is unexceptionable. Salaries are due to the employees of the State for services rendered. Salaries in other words constitute the rightful entitlement of the employees and are payable in accordance with law. Likewise, it is well settled that the payment of pension is for years of past service rendered by the pensioners to the State. Pensions are hence a matter of a rightful entitlement recognised by the applicable rules and regulations which govern the service of the employees of the State".

The bench directed that in substitution of the interest rate of 12% per annum which has been awarded by the High Court, the Government of Andhra Pradesh shall pay simple interest computed at the rate of 6% per annum on account of deferred salaries and pensions within a period of thirty days.

Fringe Benefits

An employment benefit given in addition to one's wages or salary. The term "fringe benefits" was coined by the War Labor Board during World War II to describe the various indirect benefits which industry had devised to attract and retain labor when direct wage increases were prohibited.

Old age payments, Paid vacations, Survivor payments, Disability and health insurance Profit sharing, Pension plans, Bonuses, Life insurance, Education payments, Dental insurance, Worker's compensation, Accident insurance, Unemployment compensation, Discounts on goods/services purchased from the company and Child care.

Some of these benefits are: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, day care, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits (Transportation facility/ Company Car, telephone facility, Free electricity, or Petrol allowance).

Facts [+]

The Timberland Company, best known for its outdoor wear and hiking boots, regularly makes Fortune's annual list of best companies to work for. In addition to core benefits, Timberland offers its employees several unique benefits, such as $3,000 credit toward a hybrid car, 40 paid hours per year of volunteer work in the community, sabbaticals, and everyday casual dress.

Drug maker Ely Lilly ranks as one of the best American companies to work for as compiled by CNN and Money magazine. Lilly helps its employees stay healthy with free health screens and an on-site clinic of physicians, psychologists, and nurses that handles 50,000 visits a year. Unique to Lilly is its perk to pregnant employees that provides a paid month off before their due date.

KEY EMPLOYEE BENEFITS IN COMPETITION ORGANISATIONS;

Mercer Human Resource Consulting, a subsidiary of Marsh and McLennan, is a global leader in HR and financial services. Mercer Human Resource Consulting provides expertise in human resource areas, ranging from compensation and benefits to operational effectiveness and employee performance and engagement. Mercer has over 15,000 employees serving clients in 41 countries.

Employee Benefit Advisor magazine provides in-depth articles for benefit advisers, brokers, consultants, worksite marketers and enrolment specialists. The publication provides need-to-know benefits information, market influences such as legal and regulatory changes, new benefit products, and better ways of delivering, marketing and selling benefits.

Facts [+]

Italy, France, and Germany top the list of average number of vacation days per year, according to the World Tourism Organization. Italians receive an average of forty-two vacation days per year. Korea, Japan, and the U.S. are at the bottom of the list. Americans receive an average of thirteen vacation days per year.

American workers receive on average about twelve vacation days a year. The typical American worker gives back an average of three vacation days, according to a recent survey by Expedia.com, leaving nearly 421 million vacation days unused. The survey estimates that 31 percent of employees do not take all their vacation days.

PAID TIME OFF

“On average, employed adults in India get 17 days paid holiday days per year. Despite that, 42 per cent are often concerned with the mounting load of the work while the other 26 per cent are unable to find the time to disengage from the official responsibilities. Close to 30 per cent are unable summon the courage to ask for leave, as a large share believe that two-week holidays are frowned upon or discouraged by their workplace,” British Airways said in a release.

Employers know that their employees need a break once in a while. Employers are doing several things to address personal time off. Organizations are streamlining their vacation time, sick time, personal days, holidays, and volunteer time into a single "paid time off" category. That's why companies offer paid time off (PTO) in the form of vacation days, holidays, personal leave, and sick leave .Many companies have done away with "sick leave" and "vacation" as employee benefits and have replaced them with "paid time off" (PTO).

Paid time off is a bank of hours from which employees can draw. Employers credit additional hours to their employees "banks", usually every pay period. Most US employers offer their workers 10 paid holidays, 2 weeks vacation, two personal days, and 8 sick leave days per year. Under a PTO plan, the employees would be credited with 30 days paid time off instead (10+10+2+8).

The definition of paid time off is any time not worked by an employee for which the regular rate, a fixed or a prorated amount of pay, is accrued and paid to the employee.

As mentioned above, some employers prefer to give their employees a paid time off plan. This is a more flexible arrangement that gives the employee a set amount of days off to be used at the employee's discretion. These days can be used for sick time, personal days, vacations, or for whatever reason the employee may need time off. Like vacation and other forms of time off, the amount of days off generally accumulates through years of service and the level of the employee within the organization.

Facts [+]

Two of every three sick days used by U.S. workers were used for something other than illness, according to a survey by human resources information company CCH. The survey of more than 1.3 million workers found that family issues, personal needs, and stress were the rationale for taking more than half of all sick days. About 32% of sick days were actually used for personal illness

PERQUISITES

The term perqs (also perks) is often used colloquially to refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are take-home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist—first choice of such things as job assignments and vacation scheduling.

Facts

Some unique perks put Worthington Industries in Fortune Magazine's 100 Best Places to Work list. Worthington offers its factory workers monthly profit sharing that augments monthly salaries by 40% to 100%. Worthington employees who join the company wellness program get their entire health insurance premiums covered. Also, employees are offered onsite haircuts for just $4.

Perks and benefits are among the top things employees consider when deciding whether to accept a job. Almost 80% of employees say that they would prefer new benefits, like health insurance or paid time off, over a pay raise.

Google

• • When a Googler passes away surviving spouse or partner of a deceased employee 50% of their salary for the next 10 years.

  • Free gourmet food and never ending snacks!

  • 24/7 in-house tech support from their TechStop service Dogs are welcome into the office

  • Employee s given 'massage credits’ for a job well done

  • The 80/20 rule allows Googlers to dedicate 80% of their time to their primary job and 20% on passion projects

  • Xoogler alumni support for the rest of their lives

APPLE

• • Matches employee's for time spent on philanthropic endeavours

  • Provides monetary assistance to family members in the event of a death of an Apple employee

  • Mothers can take a total of 18 weeks parental leave, and fathers can have up to 6 weeks

  • Large discounts on Apple products

  • Holds an event called the “beer bash" every few weeks.

  • Serves free beer and live bands perform

Microsoft

• • Huge discounts on Microsoft products Free membership at ProSports Club

  • A shopping mall right on the Microsoft grounds in Washington

  • On-campus health center. Walk-ins welcome

  • Fields and courts for a large variety of sports

  • Lots of entertainment, including Xbox's, pool tables and arcade machines

McDonald

• • Cash rewards based on annual performance

  • Company car program which includes insurance, maintenance and repair

  • Anniversary splash - Extra week of paid time off when an employee reaches an anniversary “of the fives" (5.15. 25. 35)

  • Sabbatical program - employees can take an eight-week paid sabbatical every 10 years of full-time continuous service

  • Adoption assistance - help with costs associated with adopting a child under the age of 18

3M

• • Weight management program reimbursement Online health classes

  • Tobacco cessation offerings and resources

  • Child and adult (elder) care consultation and referral

  • Financial and legal consultation and referral services

Twitter is well-known for providing perks such as three catered meals a day, but some lesser-known benefits include onsite acupuncture and improv classes.

Facebook provides $4,000 in 'Baby Cash' to employees with a newborn.

Salesforce employees receive six days of paid volunteer time off a year, as well as $1,000 a year to donate to a charity of their choice.

Adobe shuts down the entire company for one week in December and one week over the summer.

Spotify provides six months of paid parental leave, plus one month of flexible work options for parents returning to the office. The company also covers costs for egg freezing and fertility assistance.

Airbnb gives its employees an annual stipend of $2,000 to travel and stay in an Airbnb listing anywhere in the world.

Accenture covers gender reassignment for its employees as part of its commitment to LGBTQ rights and diversity.

Accenture features in the "Top 10 of the 100 Best Companies for Women in India" list which celebrates organisations that champion sustainable careers for women.

The company was recognised for providing an inclusive and supportive environment for its more than 45,000 women in India on several categories, including women's recruitment, retention and advancement, safety and security, flexible work programmes and paid-time off.

The company was also recognised for its leading maternity benefits and support for returning mothers.

Accenture features in the "Top 10 of the 100 Best Companies for Women in India" list which celebrates organisations that champion sustainable careers for women.

The company was recognised for providing an inclusive and supportive environment for its more than 45,000 women in India on several categories, including women's recruitment, retention and advancement, safety and security, flexible work programmes and paid-time off.

Perks mentioned in the survey included:

• • cell phones (60.2%)

  • car allowance (31.3%)

  • company car (26.4%)

  • supplemental life insurance (26.2%)

  • voluntary deferred compensation programs (18.8%)

  • annual physical exam (17.6%)

  • supplemental disability program (16.9%)

  • club membership(s) (15.7%)

  • supplemental executive retirement plans (10.3%)

  • supplemental medical insurance (6.2%)

  • legal counseling (5.6%)

  • post-retirement insurance (4.6%)

  • supplemental vacations (4.5%)

  • airline VIP lounge membership (3.1%)

  • dependent tuition reimbursement (3.3%)

The number of organizations offering each kind of executive perk has remained consistent over the past four years.

The purpose of the benefits is to increase the economic security of employees.

Employers who hope to retain solid, hard-working employees should be prepared to offer basic employee benefits. In addition to salary, good benefits provide important resources that not only help build a positive working relationship between employer and employee but also promote good work habits and financial practices.

Employee benefits will vary depending on the employer, and it is important for business owners to carefully consider their options. For example, the type of industry in which your business falls will help determine the types of basic employee benefits important to your staff. A job that requires employees to work outside in inclement weather, for example, might offer more paid sick leave than an indoor office position.

Employee Health Insurance Benefits

One of the most important employee benefits is health insurance, so that staff members can visit the doctor when they face any health issues. Not only does this help the employee save money, but it also helps the employer by encouraging staff members to get treatment, thus allowing them to return to work more quickly and not spread illness to the rest of the staff.

INDIA

The Employees, State Insurance Act (ESI Act) was enacted with the object of introducing a scheme of health insurance for industrial workers. The scheme envisaged by it is one of compulsory State Insurance providing for certain benefits in the event of sickness, maternity and employment injury to workmen employed in or in connection with the work in factories other than seasonal factories.

Applicability

• • Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.

  • Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

  • Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .

  • The State Govt. has been requested to issue notification under Section 1(5) on the lines of Section 2(12) keeping the threshold limit for coverage as 10 employees instead of 20.

  • The existing wage-limit for coverage under the Act, is Rs.15,000/- per month

More Detailed >>

USA

Employee health insurance benefits should include health plans that allow employees to visit doctors in close physical proximity and assist with prescription purposes. There are several different options available to business owners, from PPOs to HMOs, so it is important to consider each option carefully.

Most Americans who have health insurance through their employer (and many who are self-insured) are enrolled in some type of a managed care plan - either an HMO or PPO. The most common types of managed care plans are health maintenance organizations (HMOs) and preferred provider organizations (PPOs).

Preferred Provider Organization.

The PPO offers choice and flexibility, but is often more expensive. With a PPO, patients can see any doctor they wish, or visit any hospital they choose, usually within a preferred network of providers. One does not have to designate a primary care physician, and one can usually see any specialist without referral.

Health Maintenance Organization.

HMO requires that patients see only doctors or hospitals on their list of providers, and in addition, patients must choose a primary care physician who will direct care and refer patients to approved specialists. This type of organization offers fewer choices and may make changing doctors or seeking second opinions more difficult. Generally, the HMO will not, without prior approval, cover medical expenses incurred by seeing someone who is not contracted with the HMO, but usually will have defined coverage for emergency medical care when patients travel outside the normal coverage area. The Health Maintenance Organization Act of 1973 required employers with 25 or more employees to offer federally certified HMO options if the employer offers traditional healthcare options.

Point-of-service (POS) plans.

A third type of health plan -- known as a point-of-service (POS) plan – offers a combination of PPO health insurance and HMO insurance services. In fact, the "point of service" in the name reflects the fact that you make your choice of whether to use HMO or PPO services each time you see a provider.

Generally, a POS has rules similar to HMO insurance, but a POS will allow you to see an out-of-network physician for a higher fee. Some HMOs actually include a POS plan so you can see out-of-network physicians.

Facts [+]

According to the U.S. Department of Labor, nearly five million people who desire full-time jobs have settled for part-time work, up nearly 30% from five years earlier. Only 17% of part-time workers get health insurance benefits from employers, and only 21% of part-timers are included in employers' pension plans, according to the Economic Policy Institute.

PAID LEAVE

Similar to employee health insurance benefits, paid leave allows sick employees to stay home and recover without jeopardizing their pay checks. Paid leave, like paid vacation, can take many forms. For example, maternity and paternity leave, examples of paid sick leave, are given to new parents who need to stay home with new-born children. Paid leave can also apply to employees who come down with the common cold or flu.

In some cases, these basic employee benefits are called "personal days," which implies that they can be used for reasons other than injury or illness. Some employees simply need a mental health day to recuperate from the stress at work; personal days give them that option.

Retirement Plans

A retirement plan allows employees to prepare for their futures, securing their financial stability after they have aged out of the work force. Furthermore, it is easier for businesses to offer retirement benefits than most people think.

USA

A 401(k) plan is arguably the most popular of the basic employee benefits. It allows employees to contribute tax-deferred earnings to their retirement plans while the employer assists. Simple 401(k) options are available to small businesses with fewer than 100 employees.

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