Employee benefits can be short term, long term and termination benefits. Short term benefits generally include monetary and non-monetary benefits for a short period. Long term benefits include pensions and other retirement plans. A possible narrowest definition will include employer-provided benefits for accident, death, retirement, sickness or unemployment (Weathingtin and Tetrik, 2009). However, in order to better understand the employee benefits, it is important to cover all forms of employee benefits and compensation schemes used across the globe. The most frequently used employee benefit forms are as follows:
2. Payments for retirement plans and private insurance: These include costs of starting such plans and contributions in forms of payments or insurance premiums through alternative arrangements for funding (The British Psychological society, 2014). The government has set policies for providing benefits under various plans in case of personal loss. The personal loss covers the following aspects:
4. Extra payments to employees through cash. Other than bonuses and wages, cash payments are also provided to employees on the basis of performance. This category of benefits includes the following factors:
Employee benefits and compensation packages have become a very common as well as necessary phenomenon for employees and workers in the 21st century. As a result of globalizations and increasing opportunities in work and career, workers and employees have started realizing their worth and have started demanding more from their employers (Dulebohn, et al., 2009). As a result companies have not integrated benefits and compensation system into their core management. As the economic environment is becoming more service oriented and work forces are becoming white collars, these employee benefits are naturally expected.
The necessity of employee benefits is more for employers than for employees. In the current