CHAPTER 5:
Employee Benefits
and Compensation
Benefits and
Motivation
&
Reasons for
Granting Benefits
Discussant
Ivy Pilar A. Ancis
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Employee Benefits
Employee
benefits
are
payments employers make
to employees that are
beyond the scope of wages.
Employee benefits are non-financial
compensation provided to an employee
as part of the employment contract.
Employee benefits may be required by
law (depending on the risk associated
with the job or industry and the laws of
the country where the job is held) or
provided voluntarily by the employer.
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1. Legally Required Benefits
• Phil. Health Membership – Health Insurance for hospitalization
and annual physical exam
• GSIS/SSS Benefits – Retirement and Life Insurance Plan
• Pag-Ibig Fund Benefits- Housing benefits and savings program
• Vacation Credits – Up to 15 days in a year
• Leave Privileges – Maternity Leave, Paternity Leave and Study
Leave
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2. Voluntary Benefits
Group life insurance
Health insurance
Pension plans
Educational program
Pre-retirement program
Company sponsored social and recreational events
Counseling services
Free uniform
Housing and moving expenses
Paid transportation and parking
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Incentives
1.
2.
3.
4.
5.
6.
7.
8.
Performance Based Bonus (PBB)
Productivity Enhancement Incentive (PEI)
Personnel Economic Relief Allowance (PERA – Annual)
Mid-year and Year-end Bonuses + Cash Gift
Clothing Allowance
Teaching Supplies Allowance
Special Hardship Allowance (SHA = 25% of Basic Pay)
Long Term Incentives: Loyalty Cash Incentive, Step Increment
(Salary Increase)
9. Proportional Vacation Pay (PVP)
10. Mobile Teachers and District Alternative Learning Coordinators (DALC)
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How Benefits are Related to Employee Motivation
1. Unique Benefits Create Positive Actions
 Research by Idea Connect showed that a benefits
and recognition programme can boost performance
by up to 44%.
 Personalised benefits scheme has the capacity to
create intrinsic motivation.
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How Benefits are Related to Employee Motivation
2. Great Benefits Will Create Company Advocates
 Through introducing benefits beyond the basics,
such as wellbeing, lifestyle, or leisure benefits,
employees will link those positive experiences back
to work.
 The positive connotations with their employer
means good word inevitably spreads among their
social circle and even online sites enabling you to
reach an even broader pool of talent.
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How Benefits are Related to Employee Motivation
3. Motivated Employees Lead To High Value Of A
Position
• Fair compensation and benefits can lead to greater
job satisfaction, meaning employees are happy in
their job position and are less likely to want to
move jobs.
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How Benefits are Related to Employee Motivation
4. More Motivation Means More Work
 If employees are feeling appreciated at
work through great benefits, they’ll be more
motivated and produce a higher volume of
better quality work.
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Reasons for
Granting Benefits
Discussant
Ivy Pilar A. Ancis
11
1. To comply with legal requirements
2. Increase Appeal
◎
A strong benefits package will help to attract
high-quality employees, and can be a crucial
factor for potential candidates in deciding
whether to join a company.
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3. Retain talent
◎ It costs more to find a new employee than it does to
keep an old one. Staff turnover also causes
disruption and loss of continuity for co-workers and
customers alike, so once companies have great
employees on board, the focus turns to how to keep
them from jumping ship.
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4. Boost morale, engagement and productivity
◎
Benefits can make a real contribution to
lifestyle choices or leisure activities –
creating that all important feel-good factor
which boosts morale, engagement and
productivity, and inspires loyalty.
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5. Savings for employers and employees
◎ Benefits that operate via net pay deduction, where
the employee gives up part of their salary in return
for a non-cash benefit such as childcare vouchers
or annual leave purchase schemes, can be
financially beneficial for both employer and
employee. Not only do they help employees spread
the cost of big purchases, they may also be able to
benefit from reduced tax and NI contributions - as
may their employers.
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thanks!
Please feel free to
ask questions, or
share your insights
regarding the
topic…
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References:
https://www.myaccountingcourse.com/accounting-dictionary/employee-benefits
https://www.hrzone.com/hr-glossary/what-are-employee-benefits
https://www.sodexoengage.com/blog/the-top-four-reasons-to-offer-employeebenefits?hs_amp=true&fbclid=IwAR2YtL9aQ_Rv7pAR64bAc5C6Y3h3_iWX4bDbu9C1XLyOHhCvlqi1OQc2vs
https://newcityinsurance.com/how-are-compensation-and-benefits-related-to-employeemotivation/?fbclid=IwAR3Mm98E7bebT_bDcXkrpND64C0gBNTMKokqZJo0GW7_QYMbIQTpneJypo
https://www.sodexoengage.com/blog/the-top-four-reasons-to-offer-employeebenefits?hs_amp=true&fbclid=IwAR2YtL9aQ_Rv7pAR64bAc5C6Y3h3_iWX4bDbu9C1XLyOHhCvlqi1OQc2vs
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