1. All Rights Reserved AAM 2053 HUMAN RESOURCE MANAGEMENT Dr. Khairunneezam Mohd Noor FKP USIM DrNeezamNoorFKPUSIM2014 Chapter 4 – 1

2. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 2 DrNeezamNoorFKPUSIM2014 Chapter 6 – 2 All Rights Reserved BENEFITS AND REWARDS 6 CHAPTER

3. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 3 PREVIEW  The reasons why employers offer benefits to employees.  The statutorily required benefits.  Some common non-statutory benefits.  The various methods of rewarding employees.

4. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 4

5. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 5

6. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 6

7. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 7

8. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 8

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11. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 11 WHY PROVIDE BENEFITS?  Employment Act  Sabah Labour Ordinance  Sarawak Labour Ordinance  Employees Provident Fund Act  Employees Social Security Act  Workmen’s Compensation Act Many benefits are compulsory under the following laws:

12. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 12 WHY PROVIDE BENEFITS (cont.) Benefits can:  Help attract staff to join the organization  Help retain existing employees  Increase morale of employees, which may lead to higher productivity

13. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 13 STATUTORY BENEFITS  Maternity leave  Sick leave  Annual leave  Paid public holidays  Contribution to Employees Provident Fund  Contribution to Employees Social Security Organization or Purchase of insurance policy

14. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 14 NON-STATUTORY BENEFITS Time-off payments:  Marriage  Birth of a child (paternity leave)  Personal emergencies  Pilgrimage  Studies  Death of a relative

15. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 15 NON-STATUTORY BENEFITS (cont.) Health care:  Payment of medical bills  Hospitalization benefits  Payment of optical bills  Payment of dental bills

16. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 16 NON-STATUTORY BENEFITS (cont.) Other benefits:  Insurance (other than SOCSO)  Financial services  Discounted goods/services  Retirement benefits  Educational assistance

17. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 17 FLEXI-BENEFITS/ CAFETERIA BENEFITS  Employees may be offered a menu of benefits from which to choose. Limits will be set for different groups of employees.  The package of benefits is thus customized by each employee for his personal needs and can be changed as his needs change.

18. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 18 REWARDS Incentives and rewards:  Drive behaviour to higher levels  Create competition  Help to retain the best performers

19. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 19 REWARDS (cont.) To be effective, reward schemes must:  Allow many employees to be winners  Be perceived as fair  Drive suitable behaviours  Be perceived as attractive

20. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 20 FINANCIAL REWARDS  Wage increments  Bonuses  Profit-sharing schemes  Commissions

21. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 21 NON-FINANCIAL REWARDS  Performance awards  Letters of appreciation  Long service awards  Sponsorship to attend conferences  Award ceremonies  Tokens of appreciation

22. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 22

23. All Rights ReservedDrNeezamNoorFKPUSIM2014 Chapter 6 – 23 REVIEW  The reasons why employers offer benefits to employees.  The statutorily required benefits.  Some common non-statutory benefits.  The various methods of rewarding employees.