Social security is a very important component of an employee perk. When they join an organization, it is expected to have a status in their social circle. If they are employed in a reputed organization, it gives them a feeling of well-being and reasonably good status. Besides social status, the job and responsibilities give them great amount of learning. They learn on various subjects, which may be directly linked to their job profile and also other area of interest.
However organizations offer and give several other benefits that give them short term and long term social security. Few such benefits are agreed upon at the time of appointment and mentioned in offer letter and appointment letter. Subsequently, additional benefits are given on different heads. There are various heads, where monetary benefits are given and other benefits are also announced or given.
The promotion to elevated position, further enhance the benefits. The human resource department and organization keep in mind various needs at the growing age of the employee or increase in family size and responsibility. There are long service awards to employees who attain, 10, 15, 20, 25 or 50 years of service. Any outstanding qualitative or quantitative performance is formally recognized. Organizations arrange ceremonial functions to award such occasions, where family members are also invited.
The health, education, marriage responsibilities, home / accommodation, conveyance, furnishing of home, club membership, magazine subscriptions etc are also given. Health is an important issue for employee and their family. In case of health emergencies / hospitalization, some benefits like health insurance /Group health insurance are part of the policy.
The organizations also keep in mind, the retirement age and makes policy of post retirement benefits, so that employees and their family lead a comfortable and happy retired life. There are different ways of savings and contribution of the employer which is accumulated till the retirement age. A reasonable interest is paid and that is compounded.
The various social security benefits given to an employee are as follows:
- SALARY: This component is basic salary; it is as per the policy and the designation. The new candidates are normally on on-job training and get fixed amount towards stipend for part of a year. After the completion of successful training, the candidate is put on probation and is employed on a pay scale; giving details of salary and minimum yearly raise and subsequently reaching another scale of pay.
- COST OF LIVING ADJUSTMENT: There is always an element of inflation which affects cost of day to day living. There are agencies that keep constant vigil on retail price of commodities and fix an index on quarterly basis. The additional component of inflation linked raise is decided every quarter, the employee receive raised component in subsequent quarter of the year. This is an important area of social security, so that employee’s concern on inflation is taken care.
- ACCOMODATION / HOUSE RENT: The organizations understand the need to provide residential accommodation, matching to the position of the employee. In case enough accommodation is not available, then home is taken on lease and monthly rent, brokerage, advance deposits with owner is borne by the organization.
- EDUCATION ALLOWANCES: The employee, if married and has school going children, the organization gives, education allowance or reimburses the entire amount of tuition fee.
- VEHICLE MAINTENANCE: If employee is using vehicle provided by the company, or his own, he may get actual or fixed amount of fuel and is also reimbursed for periodical service & maintenance. Few senior members in the management may be given a driver / chauffer by the company or a fixed amount towards that service. The vehicle insurance is also paid by the organization.
- HEALTH BENEFITS: The organizations are concerned about employee’s health and hence there is annual health checkup that is done by medical specialists along with pathological checkups. In case of small duration illness consultation fee of doctor, medicine, other examination expenses are reimbursed. Employees are covered by group health insurance scheme. In case of hospitalization, employee is free from expense burden.
- LEAVE BENEFITS: The employees are entitled to privilege leave, which is given annually, to attend to his family needs or holiday trip. In addition to privilege leave, employees also are entitled to sick leave. In case of emergencies, the employee can take 1-2 days casual leave. A portion of unutilized leaves can be accumulated and one can get additional pay against surrendering leave entitlement.
- LTA: The employees and their spouse are given Leave travel assistance, if they wish to visit their home town or go on pleasure trips.
Thus employees get several benefits which gives them social security and a feeling of well being, working in the organization. This motivates them to be more productive for the organization.