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#1
12-14-2008, 01:25 PM
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Employee Benefits
Employee benefits (For Employee satisfaction & to stop Attrition)
Before proceeding further, Lets see why people are leaving? Why there is high attrition rate. When there are so many benefits associated with BPO & IT industry…. when there are so many privileges for the BPO & IT employees than what makes them to change the company/industry?? Is it only MONEY that matters or anything else as well?? After taking exit-interviews and analyzing the trend I am able to list out following reasons for BPO & IT professional to change his/her job. No growth opportunity/lack of promotion The organisation is not reputed one For higher Salary For Higher education Misguidance by the company Policies and procedures are not conducive No personal life Not flexible work hours Physical strains Uneasy relationship with peers or managers Lack of clarity about expectations Lack of feedback about performance Bond Documentation Mentality Employee - Management relation is not good Let’s also see as what are the various benefits…that have been extended to people working in this sector. Employee Benefits Provided By Majority Of the BPO & IT Companies below is a list of benefits… 1. Medical benefits 2. Personal Accident Insurance Scheme 3. Personal Health Care (Regular medical check-ups) 4. Subsidized Food and Transportation 5. Company Leased Accommodation 6. Recreation, Cafeteria, ATM and Concierge facilities 7. Corporate Credit Card 8. Cellular Phone / Laptop 9. Loans 10. Educational Benefits 11. Performance based incentives 12. Awards & Rewards 13. Flexi-time 14. Flexible Salary Benefits 15. Regular Get together and other cultural programs 16. Wedding Day & Birthday Gifts 17. Employee Referral Scheme 18. Employee Stock Option Plan 19. Provident Fund and Employees Pension 20. Employee State Insurance Corporation 21. Bonus 22. Gratuity 23. Car/ Vehicle Scheme 24. LTA 25. Leave encashment 26. Superannuation & retirement & Voluntary Retirement Service/ Scheme 27. Paid leaves (Sick leaves/ Maternity Leaves…) 28. Club memberships.. 29. Profit sharing Medical I) Med claim Medi claim is an insurance policy, which covers medical expenses on hospitalization. Like United India Insurance Corporation, Employee has to pay premium amount and UIIC covers expenses according to the premium paid.
All employees and their dependent family members are eligible. Dependent family members include spouse, non-earning parents and children above three months Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage for Hospitalization expenses arising out of injuries sustained in an accident. This covers total / partial disablement / death due to accident and due to accidents. This covers any personal loss due to any injury caused to any employee during course of employment The company pays the premium for all the employees covered under this scheme. United India Insurance Co. Ltd. covers this policy While lodging the claim under the Group Accident Policy, following details/certificates are required to be submitted. Doctor's certificate for number of days rest required to be taken and the treatment given for.
Subsidized Food and Transportation: The organizations provide transportation facility to all the employees from home till office at subsidized rates. The lunch provided is also subsidized. Like Sodexho passes Company Leased Accommodation: Some of the companies provide shared accommodation for all the out station employees, in fact some of the BPO & IT companies also undertakes to pay electricity/water bills as well as the Society charges for the shared accommodation. The purpose is to provide to the employees to lead a more comfortable work life balance. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and showers at facilities. Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and efficient payment of official expenses which the employees undertake for purposes such as travel related expenses like Hotel bills, Air tickets etc Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the employees on the basis of business need. The employee is responsible for the maintenance and safeguarding of the asset. Loans: Many BPO & IT companies provide loan facility on three different occasions: Employees are provided with financial assistance in case of a medical emergency. Employees are also provided with financial assistance at the time of their wedding. And, the new recruits are provided with interest free loans to assist them in their initial settlement at the work location. Note: 1. Decide for what account, the loan will be provided. For example, to purchase two wheeler, four wheeler, computer, festival purpose, cloth, house hold articles, marriage, house building, children education, etc. 2. Decide which categories of staff are eligible for loan and what kind of loan. This depends the salary being paid to them and volume of loan amount. For example, two wheeler loans can be paid to all staff i.e., /senior junior advocates, computer personnel, administrative staff, and support staff of your firm. (I believe maximum you will be having only these kinds of staff). But four wheeler loans cannot be paid to all. Who will be eligible under this policy e.g. regular / confirmed / confirmed with three or more years of service? Criteria to decide sanction of loan amount. Documents required for processing / justifying the need of loan 3. Decide the loan amount. Once again you need to categories staff position. For example...marriage loan can be given to all...however the amount may be varied depending upon the remuneration they get... and repaying capacity. 4. Mode of recovery - You need to deduct the entire loan from the salary. Period of recovery 5. You have to think twice, while framing the policy, how long each and every staff will be working with you. Interest burden and sharing of interest component by employee and employer 6. You should allocate separate budget provision towards loan and every year it has to be increased depending upon the usage. 7. How much capital a company can afford towards this policy. Educational Benefits: Many BPO & IT companies have this policy to develop the personality and knowledge level of their employees and hence reimburse the expenses incurred towards tuition fees, examination fees, and purchase of books subject, for pursuing MBA, and/or other management qualification at ffice:smarttags" /> Performance based incentives: In many BPO & IT companies they have plans for, performance based incentive scheme. The parameters for calculation are process performance i.e. speed, accuracy and productivity of each process. The Pay for Performance can be as much as 22% of the salary. Awards & Rewards: Like Best employee of the month… Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible work schedules and set out conditions for availing this provision. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs .The factors on which Flexi time is allowed to an employee include: Child or Parent care, Health situation, Maternity, Formal education program. 
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#2
12-14-2008, 01:29 PM
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Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a tax-effective compensation structure by balancing the monthly net income, yearly benefits and income tax payable.
It is applicable of all the employees of the organization. The Salary consists of Basic, DA and Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent Allowance (HRA), Leave Travel Assistance (LTA), Medical Reimbursement, and Special Allowance – Tax Free consists Regular Get together and other cultural programs: The companies organizes cultural program as and when possible but most of the times, once in a quarter, in which all the employees are given an opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the organizations also conduct various sports programs such as Cricket, football, etc and regularly play matches with the teams of other organizations and colleges. Wedding Day & Birthday Gift: Employee is given a giftvoucher of Rs. 2000/- to Rs. 7000/- based on their level in the organization. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employmentin the organization. The Employee Referral Scheme is your chance to rope in the right kind of people to help build our company. As associates of the Company, we know that you will be the best judge of the type of people we need here This is also your chance to make attractive incentives on the same. The following is the structure for the incentives: Example…
***If we take in 3 candidates from your referrals, you earn plus one benefit Note: The Referral Bonus is paid along with your salary after the successful completion of the candidate’s 6-month anniversary with the Company. Exemptions: The following are ineligible to benefit from the Scheme: a) Members of the Senior Management Team – including department heads and their direct reports. b) Members of the Human Resources Department c) Employees referring immediate family members to the Company d) Anyone else who is involved in the recruitment process The Company will not enter into any debate with an employee who has unsuccessfully referred a personal contact. In the event of any dispute, the decision of the Head of Human Resources shall be final. The company will run special referral programmes/ campaigns from time to time, the details of which shall be communicated to all at the launch of the programme. Employee Stock Option Plan Provident Fund and Employees Pension/PF: It is compulsory contributory fund for the future of the employee after his retirement or for his dependents in case of early death. The employee and employer contributes equally towards the provident fund i.e. each of them contributes 12% of the basic salary. The employee’s pension envisages providing monthly pension to employees on Superannuating, pension to dependants in unfortunate event of death Employee State Insurance Corporation/ESI: ESIC provides the employee with medical relief and sickness cash benefits. The employer is required to contribute at the rate of 4.75% of the gross salary paid. The employees are also required to at the rate of 1.75% of the gross salary. Eligibility (ESIC) - The employee who is in receipt of gross salary below & up to 10, 000/- per month excluding conveyance is eligible for ESIC coverage. Bonus: The company pays bonus to every employee at the rate of 8.33 % to max. 20% of the basic salary drawn by the employee, however, it is subject to change at the discretion of the management. Gratuity: Gratuity is paid to the employee who completes five years of service in the company is eligible for payment of gratuity. The rate of payment is 15 days salary for every year of service completed. Car/ Vehicle Scheme: The scheme is to ensure smooth easy and comfortable mobility of the senior executives of the company for their official work in a dignified manner. Applicable to all Executives in the cadre of Assistant General Manager & above at the sole discretion of the management The facility of driver shall be provided to the GMs / DGMs only The running expenses of the vehicle shall be claimed on monthly basis. It includes expenses incurred on fuel, repairs & maintenance, toll tax and parking charges etc. The replacement of tyres / battery shall be allowed only after every 45,000 kms/ 3years, logbook need to maintain. Leave Travel Assistance Reimbursement of 80% - 90% of the First class Rail fare for 1250/1500 Kms each way subject to maximum of four full tickets (Self, Spouse and Children). Leave encashment Superannuation & retirement: Superannuation is retirement from the service on attainment of specific age. The competent authority (central or state govt.) decides on the age limit for different posts. Currently this is 58 years for many states. Superannuation is retirement on attaining specific age. Superannuation is a form of savings where money is set aside by you and/or your employer and invested for your retirement. It is generally an ideal way to invest money for your retirement. Many funds also pay benefits if you die, or if an illness or accident makes you unable to work. Some may have 5 years, some may have 8 years. After such period if a employee resigns he/she is eligible of Superannuation which my be taken monthly or partial and partial by month or even full can be withdrawn. Your employer must contribute 9% of your earnings base to your fund On the other hand retirement can take place at any age. Any employee can choose to retire anytime in his career. People working in defense retire very young and earn pension also. Voluntary Retirement Service (VRS) /CRS are retirement schemes. So, retirement can be compulsory but superannuation is always automatic and predictable. Voluntary Retirement Service/ Scheme: Also called ‘Golden Handshake' Under VRS (voluntary Retirement Scheme), an employee can get retirement, before his superannuation, after serving notice period as prescribed. In this scheme, the employee will get terminal benefits at pro-rata basis. (33 years is the maximum period for terminal benefits like pension, gratuity etc.). Managers Superannuating Scheme: It's a beneficial scheme under which employees get certain amounts of money at the time of retirement and pension for the rest of their life.
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