Need for Fringe Benefits
Posted on Friday, October 16, 2009
This was posted in Human Resources
- Employee Demands- Prefer fringe benefits to Pay hike as reduction in tax burden & in line with increasing price index and cost of living.
- Employers preference- Prefer fringe benefits to Pay hike as they motivate employees to give their best and work as an effective advertisement.
- As a Social security- Security against risks to which members are exposed like accidents and occupational diseases. Various benefits are safety measures, compensation in case of involvement of workers in accidents, medical facilities etc.
- To improve Human Relations- maintained when employees are satisfied economically, socially & psychologically. Fringe benefits satisfy the workers economical, social & psychological needs.
- Social needs satisfied through Consumer stores, canteen, recreational facilities, credit facilities.
- Psychological needs satisfied through Retirement benefits.
- Economical needs satisfied through most of the benefits.
