1. BENEFITS AND REWARDS
CHAPTER 6

2. 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.

3. 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.

4. 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

5. 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.

6. 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

7. 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)

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

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

10. 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

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

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