Objectives

The objectives of the member of staff benefits policies & practices of an organisation might be following:

1. to enhance the commitment of employees to the organization;
2. to provide for the real or perceived personal needs of workers, including those concerning safety, financial assistance and therefore, provision of assets additionally to pay, such as company cars & petrol;
3. to demonstrate that the company cars for the requirements of its employees;
4. to make sure that an attractive & competitive total remuneration package is provided which attracts and retains high-quality staff both;
5. to provide a tax-efficient technique of remuneration which drop tax liabilities compared with those associated to equivalent cash payments.

Note down that these objectives do not include inspiring employees'. It is because benefits hardly have a direct & immediate influence on performance unless they are awarded like an incentive; for example, presenting a sales representative having a superior car (for example a BMW) for a year if he or she meets a specifically demanding target. However Benefits may create more favourable attitudes toward the company leading to enhanced long-term commitment & better performance.

1.    Why fringe Benefits?

2.    Altruistic/Paternalistic consideration

3.    Statutory requirements

4.    Concern for well being

5.    Damage & hazard of industrial working

6.    Tax-planning consideration

7.    Competitive consideration

8.    Concern for quality of work-life

9.    Mitigate fatigue and monotony

10.  Discourage labour unrest

11.  Decrease attrition

12.  Build up companies image

13.  Attract, retain and motivate employees