The term employment benefits mean the different types of non-wage compassion given to employees as an addition to their normal salaries. In situations where a worker exchanges his or her salary for any other type of benefit is called a salary exchange. In majority countries, employee benefits are taxed.
In the United States of America, the website of the office of labor relations in the shows the examples of employee benefits available. The examples include New York City Employee Individual Retirement Account (NYCE IRA), Deferred Compensation Plan, New York City Health Benefits Program, Employee Assistance Programs among other benefits.
The New York employee individual retirement is a benefit for both current and former employees with their spouse. The benefit involves opening of the retirement account and enjoys the retirement package without any inconvenience. The deferred compensation plan is another employee that is enjoyed by employees in America. This plan involved a deduction of an employee’s money and paid later than the day it is meant to be paid. Another employee benefit in the United States is the New York City Heath benefits program. This plan aims at keeping and maintaining the health of the workers and making sure they are in good conditions. The plan also includes both the spouses of the employees and their dependants. The other employee benefit is the employees Assistance Programs; this program involves counseling services to the workers and their relatives.
Among the various benefits the government provides to employees in America, the most important is the employee assistant program. This benefit ensures the workers in good conditions together with their dependants. The benefit also insures the life of the employees, which makes the workers life guaranteed and also it has increased on the productivity.
The employee benefits plan has a number of advantages it adds in the productivity process among which are the following; the policy of recruitment and retention. This is one of the major reasons why most companies inject more money in employee benefits plans. This also helps companies acquire more workers and maintain the ones in their business already. A Benefit like financial investing is very vital for the welfare of the workers. Another advantage is that the benefit of providing health insurance is very paramount for instance, employees visiting the doctor for a check up and when they are ill they receive proper care compared to the uninsured. Another advantage is that companies can keep their workers from fellow competitors in the same business. This because workers would not want to leave the workplace that is full of good incentives.
On the other hand, the employee benefits are not all the way clean they also have disadvantages associated with them for example; employee benefit increases the cost of production. This is because all the costs incurred by the producer during the process of production are a reflection in the price of the product. Another disadvantage is that competition among employees hinders effectiveness. For instance, if bonuses are introduced to workers who are efficient, in a situation where a new employee tries to ask for guidance, chances of ignoring him or her high.
In conclusion, employee benefits are important incentives in a business especially in productivity of an industry. Though these benefits have advantages it has also been examined that the disadvantages are associated with them.
Pynes, J. E. (2013). Human Resources Management for Public and Nonprofit Organizations: A StrategicApproach (Fourth ed.).. San Francisco: Jossey-Bass"http://www.nyc.gov/html/olr/html/home/home.shtml