Employee Benefits and Perks: What are the different types?

Employee Benefits and Perks: What are the different types?
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The lifeblood of one’s company –employees are one the most critical assets to any business. Employees are the ones, who drive a company towards its goals. Long story short, the overall performance and productivity of a business depends on the state of its workforce.

 

Related – Top 10 Ideas to get your Workforce Super Engaged

 

Here, the state defines whether they are motivated through complimentary perks for their work. Without a motivated or recognised workforce, chances are that the company would collapse. Therefore, it is imperative to have employee benefits, which are actually perks provided along with their salary.

 

Some of the most popular employee benefit options are as below:

 

  • Life security-

Life insurance includes benefits to the family. If a mishap occurs with the employee (resulting in their death), security is provided to the family members (maybe to parents, spouse or children). The amount collected till the date with contribution criteria as discussed with employee before joining directly goes to the beneficiaries mentioned by them.

 

 

  • Medical insurance-

Health/medical insurance is one of the most primal benefits for any employee. It provides free medical care to the employee when they need it. This can be a fracture, major illness or anything. In a world where the cost of healthcare services is skyrocketing, medical insurance plays an important role. Therefore, this makes a spot in the most popular employee benefits’ options.

 

 

  • Allowances-

There are basically types of allowances mostly observed – PA (Personal allowance) and HRA (House rent allowance). PA is the amount of money you receive with the basic salary free of tax. Whereas, HRA is the allowance one gets depending upon the residency of an employee. It depends on the average rent price of houses around them (employees).

 

Today, almost every organisation includes it in the employee benefits column.

 

 

  • Retirement care-

The practices for retirement care varies from firm to firm. It depends on whether it is a government or private sector you work for. For the private sector, PF (Provident fund) is the thing. The employee needs to contribute some amount of their salary in the PF account throughout their service. It also includes the employer’s contribution. So, after you retire from your services or if you need money during your work tenure (with some T&Cs), you can avail it.

 

Whereas, in government Sector, you receive a pension after you retire provided you complete 10 years of minimum service.

 

Discussed above are some of the most fundamental benefits an employee gets during their employment. Also, some perks at offices include a yearly visit to resorts, free lunch, a dedicated sports’ day, festival celebrations, etc.

 

These things help the management to retain their best-performing employees. Also, it contributes to attracting better talent pool.

 

Here comes the most important part. How does a company manage these benefits? HR software is the answer. Yes, a good number of businesses resort to HR solution when it comes to managing employee benefits in an error-free and timely manner.

 

 

Want to know how Pocket HRMS can help manage employee benefits for your business?  Write to us at sales@pockethrms.com

 

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