If you are an investor, entrepreneur, manager or even a chief executive officer you probably want you business to grow. For your business to grow the output of your employees has to increase. In order to increase your employees output so as to enable your business to grow you need to motivate your employees. Motivating your employees will make the strive to work harder this increasing their output and leading your business to growth.
There are various types of employee motivation techniques. One of these techniques that is very popular and common in the business arena is employee benefits. This may include fringe benefits, perquisites, and perks. In general, we can say these benefits are non-wage compensation that is given to employees by an organization in addition to the normal wages and salaries. An employee can on their own will exchange their wages and salaries for a benefit. This is called ‘salary packaging’ or ‘salary exchange’ arrangement. Depending on the type of the benefits given to employees, the government can tax them.
The most common benefits include:
An organization can offer free housing to its employees. These houses can either be owned by the organization or they are rented to the organization thus the organization pays for them. Some of the houses given to employees belonging to the organization are found within the organization. Some of the organizations and parastatals known to be prominent in offering houses to employees within their organization include educational institutions, medical care institutions, and security bodies.
ii. Group insurance.
This is where an organization takes an insurance policy for its employees and covers the costs of the insurance policy. The most common types of insurance policies companies secure for its employees are health and life insurance.
iii. Disability income protection.
This is where an organization comes up with a fund to cater for the needs and help its physically challenged employees. This funds may also assist those who may incur disability while undertaking the organizations duties. This fund is meant to help the physically challenged employees be able to match up with other employees in aspects of life.
iv. Retirement benefits.
This is a reward scheme meant for retiring employees. Here an organization offers retiring employees a send-off package. This may include a lump sum amount of money from the organization to help the retired employees during their retirement years. This retirement plan may also include other benefits like a house or a car to an employee, who is also given full ownership.
v. Daycare and tuition.
This is mainly meant for employees who have small children to take care of. An organization may offer fully paid tuition and daycare services for this children. It may be within the organization or in another institution. Educational and health care institutions are the ones popular with this benefit.
vii. Profit sharing.
Most organizations have found out that the best way to motivate employees is by incorporating them into the organization. This way they will work harder knowing that if the organization succeeds they too will succeed. Thus, organizations set aside some percentage of shares to be owned by employees so as to make the part of the organization.
Other benefits include sick leave, vacation either paid or non-paid, social security and funding of education.