BENEFITS AND REWARDS CHAPTER 6

INTRODUCTION WAGES > are cash payments paid to employees on a regular basis in return for their labor. BENEFITS > can be both financial and non-financial and they can be statutorily required or optional > specified in the contract of employment.

INTRODUCTION REWARDS > Only given to individuals or smalls groups who are considered deserving. > Tied to a worker’s performance on the job > Used as a motivational tool to encourage high levels of performance.

BENEFITS PROVIDED TO EMPLOYEES Employers provide benefits to their employees because benefits can : help attract staff to join the organization Help retain existing employees Increase morale of employees which will lead to higher productivity

BENEFITS PROVIDED TO EMPLOYEES Benefits can be classifies as: Protection programs which promote the health of employees and guard against loss of income caused by illness, accident and unemployment Paid time-off whereby an employee receives wages even though he does not work Accomodation and enhancement benefits which relate to assisting employees maintain a satisfying lifestyle.

FACTORS CONSIDERED WHEN DESIGNING A BENEFITS SCHEME Eligibility and waiting periods Kinds of benefits Level of benefits Financing of the benefits Fixed package or employee choice Communication

STATUTORY BENEFITS The wage ceiling for protection under the Employment Act is RM1500 per month and for Sabah and Sarawak Ordinances Rm2500 permonth. Maternity Protection Time-off Payments The Employees Social Security Act (SOCSO)

NON-STATUTORY BENEFITS Time-off payments Health care Insurance Financial Services Subsidies and services Retirements benefits Allowances Educational fee assistance

REWARDS SYSTEMS Rewards, both financial and non-financial, reinforce desirable behavior and spur the employee on to higher levels of productivity.

REWARDS SYSTEMS HR manager’s job is to give support to managers and make certain that recognition is given appropriately by: Conducting a survey of employees and managers to determine their attitudes towards recognition Training managers how to provide meaningful recognition Help management provide a variety of recognition programs Track the results of recognition programs

NON-FINANCIAL REWARDS Performance awards Letters of appreciation Sponsorship to seminars, conferences and overseas tours Rewards for long service

FINANCIAL REWARDS Salary increases Bonus and profit sharing Rewards for salespeople (commissions)