OVERVIEW
       The objectives of this session:- 
       •   Learn about employee benefits  
       •   Examine different remuneration retention strategies 
       •   Examine various recognition programmes in the 
           context of total rewards
          THE NEED FOR EMPLOYEE BENEFITS
                                                                                   FROM AN 
       LEGISLATION                                                                 EMPLOYER’S POINT 
       •   Governments provide a                                                   OF VIEW
           minimum level of coverage                           •   Benefits offer an opportunity to increase employee 
           for medical needs, short-                               engagement at a lower cost than wages.
           and long-tem disability, time 
                                                               •   Key emphasis is on showing concern for employees, 
           off, unemployment,                                      while seeking a better return on their people 
           retirement and survivor                                 investment via  increased retention and productivity. 
           benefits. 
       •   Benefits linked to local laws, 
           thus difficult to create 
           global programmes.                                                      FROM AN 
       •   Companies want to, at least,                                            EMPLOYEE’S POINT 
           ensure a competitive level of 
           benefits is provided locally.                                           OF VIEW
                                                               •   Benefits often not taxed – and companies can 
                                                                   purchase benefits at a lower cost. 
   TYPES OF BENEFITS
         STATUTORY        LIFE 
         BENEFITS         INSURANCE
         MEDICAL          RETIREMENT 
         BENEFITS         BENEFITS
                  STATUTORY BENEFITS
      These are benefits required by law.   
                WORKERS’ COMPENSATION                             UNEMPLOYMENT COMPENSATION
            To provide for injuries/diseases incurred at          To  provide  some  security  for  individuals, 
            work:-                                                willing to work but, not able to find a job.
            A. Medical care for work-related injuries             Limited in amount and on the length of pay 
            B. Short term disability                              (e.g. up to 6 – 18 months).
            C. Permanent  disability     benefits  from           The objective is to ease the transition until 
               injuries received while on the job                 a new job is found.
            D. Survivor benefits
            E. Rehabilitation                                              MEDICAL BENEFITS 
            Increases in employee safety contributes to                       CONTINUATION
            keep this cost under control.                         Some  countries  require  that  health 
                      SOCIAL SECURITY                             insurance be provided for up to 3 years (or 
                                                                  until a new job is found) to employees who 
                                                                  have been laid off. 
            When  an  employee  becomes  disabled, 
            retires,  or  dies,  social  security  partially      Some countries also require employers to 
            replaces the lost income.                             provide paid or unpaid leave to employees 
                                                                  for   up   to   12    weeks    for   various 
            These are funded via taxes from employers             medical/family reasons. 
            and employees. 
                MEDICAL BENEFITS
                     HEALTHCARE                            SHORT- & LONG-TERM DISABILITY
         The  most  prevalent  kind  of  benefit           In   addition  to   statutory  worker’s 
         provided.                                         compensation. 
         Usually     includes    doctor     visits,        Short term disability pays a % of income 
         hospitalisation  and  surgery,  prescription      for up to 6 months, for medical conditions 
         medicines, x-ray fees and related expenses.       which  prevent  employee  from  working 
         Sometimes  coverage  extended  to  mental         beyond the period covered by sick leave. 
         health    and     employee    assistance          Long term disability is typically covered by 
         programmes.                                       an insurance policy. Provides 40% to 60% 
                 DENTAL INSURANCE                          of  salary for those not able to work beyond 
         A common benefit, covering preventive and         6 months. This can pay for a period varying 
         curative treatment; excludes cosmetic and         between 2 years and life. 
         orthodontic treatments. 
                     VISION CARE
         Covers  the  costs  of  eye  examinations, 
         eyeglasses and contact lenses.