Reasons Why Employee Benefits Are So Important

Understanding Employee Benefits

Benefit, or employee benefit program is an effort made by the company to provide more compensation to employees. Although counted as a form of compensation, benefits are not the same as wages. Benefits are additional compensation for employees. Benefits are usually non-cash in nature and are intended to support the welfare of the employees themselves and their families.

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According to Malay S.P. Hasibuan, welfare is a complete remuneration (material and non-material provided by the company based on policy. The goal is to maintain and improve the physical and mental condition of employees so that their productivity increases.

Purpose of Providing Employee Benefits

The main purpose of providing employee benefits is to ensure employees remain loyal to the company without having to spend a lot of money, because benefits can be in the form of non-cash. As the company grows, the benefits not only revolve around retaining, but can also be a weapon in attracting new workers.

Read Also : 10 Employee Benefit Options That Companies Can Consider

These are the Benefits of Procurement Benefits for Employees

  1. Improving the quality of employees which will have an impact on better work results
  2. Improve employee comfort and safety while working
  3. Increase work productivity
  4. Help reduce the work stress load on employees.

Good For Read : Steps for the Company’s Benefit Program to Run Smoothly


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