Human Resource Management
Individual Assignment - Employee Benefits
Table of contents
What is a benefit? 3
How do (employee) benefits affect us? 3
The Employee Benefits concept 3
What are Employee Benefits? 4
Employer's challenge. 5
Why the use of employee benefits? 6
Three important factors influencing employee benefits: 7
What is a benefit?
A few examples from Webster 1913 dictionary's definition of the word "Benefit":
1. An act of kindness; a favor conferred
2. Whatever promotes prosperity and personal happiness, or
adds value to property; advantage; profit.
3. To be beneficial to; to do good to; to advantage; to advance
in health or prosperity; to be useful to; to profit.
4. To gain advantage; to make improvement; to profit; as, he
will benefit by the change.
5. financial assistance in time of need
6. something that aids or promotes well-being: "for the common good"
How do (employee) benefits affect us?
In most industrial countries Government provided benefits (e.g.,
Social Security and Medicare) are by far the largest expenditure of the federal budget.
Government tax subsidies for privately provided benefits (companies) amount to hundreds of billions each year (in most industrial countries). The news talks about benefits and employee benefits nearly every day. It's a subject of public interest.
The Employee Benefits concept
The Employee Benefits concept first originated in the United States, where in the 19th century there were brotherhoods that offered the private members provisions with regard to burial, pension and sickness. These organizations were succeeded by charitable institutions, the precursors of the unions, who offered benefits in order to attract members. Today, the concept of Employee Benefits is a part of businesses strategy to most companies worldwide. This concept plays an important part in maintaining and achieving competitive advantage by retaining core...