Benefits: An Indicator of the Value Given to the Employee
Benefits are the rights that the employee receives in addition to his standard earnings. These rights are given by companies to attract the attention of employees, improve their performance and retain them. Regardless of the sector it operates in, one of the most important resources of a company is human resources. Qualified workforce is a sought-after feature for all companies and must be completed. For this reason, companies have to adopt different approaches in order to increase the motivation and loyalty of both new hires and existing employees. The fringe benefits we have given in our article today are not limited to the financial opportunities provided to the employee, but should be considered as any gain that will enable the employee to be more productive in his work.
How Do Benefits Work?
Benefits differ from company to company as they are provided voluntarily by the employer. In some cases, the employer may grant comfort-enhancing benefits such as a company car, and sometimes benefits such as sports membership or educational support.
Benefits are a method used to attract the attention of qualified people who have the potential to work in the company, and sometimes as a company policy, to increase the comfort and convenience of employees.
Categories of Benefits
It is possible to examine fringe benefits in two main categories: those for which the employer is legally responsible and those that are not legally binding but only at the initiative of the employer. To elaborate on these two categories;
1. Ancillary Rights That Are Legally Required
These fringe benefits are the responsibilities imposed on the employee by the state. The standard rights that should be granted to each individual starting a job and to all employees working in that company for a certain period of time are as follows:
1- Health Insurance (SSI)
Each working individual is also registered with the Social Security Institution in return for the salary he receives in return for the agreement and has regular health insurance coverage. All costs of this insurance, which is covered by the employer, are calculated according to the employee's salary and paid to the state.
2- Unemployment Insurance
Unemployment insurance is a type of insurance given to the employer by the state in order to prevent employees from losing their entire income and to prevent them from experiencing financial difficulties if they are dismissed in accordance with certain rules. The unemployment insurance premium is paid to the relevant institution by the employer every month on behalf of the employee.
3- Medical Report Permission
During the working period, the employee may experience various health problems. In such cases, the employee has to be considered on leave if he submits the doctor's report.
Severance pay is one of the fringe benefits earned by each individual working in the same company for one year or more, in return for working time, and it is obligatory to be paid by the employer to the employee in case of dismissal.
2. Benefits at the Initiative of the Employer
These types of fringe benefits are the rights granted to employees by the employer for the reasons we have mentioned before. It is not legally determined and is only a result of employer and company policies. Such rights are limited and varied by the creativity of employers and managers, as well as company facilities. For this reason, we have tried to list some of the most common side benefits for you below:
1- Additional paid leave
2- The right to use company vehicles
3- Fuel charges
4- Private pension insurance
5- Private life insurance
6- Achievement awards
7- Additional premiums
8- Discounted or free use of company facilities
9- Food checks on regular or special occasions
Although the supply, training and efficiency of qualified personnel is essential for human resources, the correct and useful design of fringe benefits is an indicator of the value given to the employee.