 Assalamu alaikum, ladies and gentlemen this is Muhtar Ahmad with the virtual universities course Human Resource Management and I am here with our lecture number 29. Today we will discuss about benefits and this part of the compensation system. So, let us start our today's session and that is our lecture number 29. But what about our lecture number 28? We have to remember always that we are covering different topics of our subject that is human resource management. And what is human resource management? Managing the people within organization and how you should do that? For that purpose we are trying to understand different aspects, different activities taking place in the organization directly or indirectly affecting their behavior. So that through this we should learn how to manage people well. Not only this but when you are part of the team you should also understand what is happening and why it is happening. So quickly let us go back and review our previous lecture that was lecture number 28 and in that lecture we try to understand the compensation system. After job evaluation after pricing the job we shifted to our next topic that was compensation system. And in compensation system when we are talking about the compensation of an employee we can divide them in two broader categories they are intrinsic and extrinsic rewards we can say a compensation. And in extrinsic we can have direct financial or indirect we call them the benefits. And in intrinsic we can talk about recognitions, promotion opportunities, interesting work etcetera. So that was the basic devion of this compensation system of any employee in the organization. And after that we try to understand why we want to do this thing. The objectives are effective compensation management. And then we shifted to steps for establishing pay rates, and then we also try to understand what determines that how much you pay. And in that we have covered different forces of different factor which are affecting your decision like government policies, the bargaining power, the market demand and supply relationship and so many other things. But let before I should go for the today's topic we have also discussed one aspect we call it equity. And during our discussion part in the evaluation and pricing of the job we recommended that we should keep always keep in our mind the equity part, the internal equity and external equity when we compare with each other. And during our previous lecture I trained I tried to explain that concept in two different ways. So I thought why do not I bring it back today and discuss it again with you so that it should be clear. So let me explain this concept again to you so that nothing should be, there should be no problem while understanding this concept. So what is equity and how it is affecting the, your decision about the salaries or compensation. Equity perception, technically see this equation outcome over input or output over input it is the efficiency right, if you want to see the efficiency then you will see the output and the ratio in input and here when we talk about compensation, so an employee who does the effort as much as the input and as much as he gets in return of course after the delivery, his compensation package is understood and when we talk about equity then this compensation base on his performance or base on his or her input it should be equal to the same type of other person whether it is inside organization or outside organization because all those micro and macro factor and internal forces and external forces they are affecting your decision. How should you describe this, the description of this concept is that pay should be based upon contribution made by the employees, higher effort should be rewarded with higher pay. The more you will perform the better you will get within the same region, a position in a particular region, now we cannot compare it like this, let us see a blue color person who is working in the sun for 10 hours, 8 hours of course he or she is putting extra effort there, it is very hard work, but when we compare it then according to the environment we will compare it based on the same type of capability, the same type of qualification, scalability base. So what is the situation, pay should be tied to the performance level of individual employee and based on this we will see what the market situation can be and then during the same lecture the 28th lecture we also discussed this slide, in which we compared two persons, person A and person B. Let us see if person A has a reward which he has to get at the end by putting his effort, we can say that the person A is being under rewarded. And in the second situation if the person A reward is equal to person B reward, so we can say that is the equity, they have been dealt equally, now the others extreme can be that person A's reward is more than person B, so that is our rewarded. Now in this there are two factors, its outcome B and its input B, because the ratio will be made based on both of them, so I hope now this concept is clear, nothing is doubtful, so let us move forward, so to start over today's topic, again this going back a little bit and trying to understand the total compensation. As I told you that in this there is direct compensation and indirect compensation, what is the difference in both of them and today we will try to see the indirect part. Do you remember in direct that we discussed that there can be salaries or wages, commissions, bonus and where direct you can have the financial benefit. And indirect and we call them the benefits, in this your vacations, your insurance has become medical life insurance and so many others we will discuss them in detail. That is your security, pension, all the other concepts and services that you provide, that is coming under indirect compensation. And as I said we call them the benefits, and what are the benefits? benefits, of course the same thing and indirect compensation given to an employees, a group of employees as a part of your organization's membership, and these benefits vary from organization to organization. And of course why they are doing, the good reason, the three big thing like attract, retain and motivate their employees, we thought we should also discuss this topic in our discussion, this is also an important part of your total compensation plan. So, let us move and see how these benefits are affecting, when we are talking about human resource philosophy see here, employees they want more and more benefits, and sometime even people join organization where they are getting less direct compensation, but the benefits are more, so that the potential the candidate should deliver the more, or the same base paper of our business or strategic objective which we achieve by utilizing the work force in the organization. And what are the strategic roles of benefits, the most basic, I do not know, benefit absorbs social cost for health care and retirements, now see we are all the part of a society, and society has some responsibilities to fulfill, now who will take care of the health requirements for the people, and if they are retire that is also the responsibility of society. So, what is happening here, that role of the society is now being played by the different organization, and of course those they are also part of the society, those benefits kishakal mein aapko health facility aur retirement ki jo, aapki jo pension aaya baaki cheezein security provide ki jaariye, so in a way you are observing those responsibility which other way the society should have to arrange, so strategicali ek toh iska bada important role hai, ki society ki jo zimidari jo otherwise onko kisi tera poori karne thi, aap organization ne le liye usko benefits ki shakal mein apne employees ke liye implement ki hai. Uske lawa, these benefits are also influencing, implies decision about what, when to join in organization and when to retire, should they join in organization aur agar benefits achhe kaida fa to aap early retirement liye lethe, aama rahe bhi concept baire se chaltara, golden shake hand ka, so these are above, that is where the benefits are also playing strategy goals, and nowadays even the benefits are being seen as the entitlement, doke it is concept was different, but now people feel no, jab salary melegi to saath, gadi bhi melegi saath aapko medical facility jimidli chahi ye, because you think this is your entitlement, for saale se bhi, lot of pressure is being posed on the organization. And remember around 30 to 40 or sometime more than that, percentage of your benefits jo hain, wo aapki total pay role ka jo issa aapke wo bante hain, total compensation jo banti aapki usko 30 to 40 or even sometime more depending on as organization and country to country, aapki jo total compensation ka part is going toward your benefits. Why focus on benefits, why should we worried about benefits, because it is the integral part of the compensation strategy to compete for employees, aapki ek marketing strategy me bhi organization ke part play ka rahe, attraction gili aana, if your company is providing some extra facilities, some as extra benefits, that itself will play a marketing tool for you, to attract people, like when new firms, they are starting wo shuru meh shahid base page kum rakhti hain, lekin benefits ko badaa dite hain, ta ke zyada log aasak hain. Incentives ko vary kar dite hain, performance se bhi attach kar dite hain kabi kabi, aur iss se kya hota hai, ki base pay toh so waise bhi dehi nahi aapne, agar aap usko attach kar dite hain kisi benefit ke saath aur with different categories meh, toh hosakta aap thotsa kaas ko bhi control kaas hain, and it will also help to establish or build your image in the market, the business image isi kaite hain, wo aap ka market meh banta hain. Those benefits can also influence the employees decision, whether through join your organization, accept the offer, stay there or when to leave, wo recruitment jo aap prasa shuru krte hain, attraction hoti hain, to attract talented people to come and join you, and it depend on both internal and external environment in which you are working. These benefits can also communicate organizational values and sports strategic objectives. Ye aap ke liek message bhi hota hain, ki how much caring your organization is for you, how much care your organization is doing for you, for your family and for your welfare. Aur usse bhi ek bahant jo banta hain organizations ka, employees ka apas meh, jisko, jiske organizations, citizenship 12 hoti hain. Of course, other factors bhi play a role kar rahe hoti hain, but this is also very important factor, ki jo aap ka wo linkage wo jeg bond kriate karta hain. Aur agar jisko proper trike se manage kia jaye, to aap apne kaas ko bhi control kaal sakte hain, because like if you have medical facilities available for your employees, if you have the housing facilities, aur moment jo bade bade production units hoti hain to uske sath hi wo apni colonies bana lethain. Of course, shuru me to capital costs lakta hain, boh bada hain, dekendal long term pe you are containing the cost, you are managing the cost, to financially bhi aap ko helpful hosakta hain. Aur yad rakh hiye ki iska kaafi sa person jo aap ka total pay package ka hota hain wo aap ke benefits meh jata hain. Benefits shakal meh, implies ke liye hota hain. And very important, it can enhance agnation image, people will take that as a positive signal. In the market it is a positive signal. How it is positive? Just imagine two different agnation, they might be paying the same base salary, but one is having extra benefit for their employees, people will take it a positive signal. And they will prefer to join that agnation, because they think that they always keep their welfare for their kadi fayde ki liye wo extra effort ka rahe hain. Aur agn wo jo basic filasfi hain hain, ki why should I work, what is cash for me? Aur insaan hoop se hoop tar ki talaash meh to rahata hain, within framework of a particular time frame meh rahata hain. Let us move forward, but one thing we should remember, the benefits depend on the times. A person who is just joining an organization is young, energetic, he or she might not be worried about the pension plan. But some time it is very important to, bachon ke taleem ke li jo aapko agnation assess krti hain, wo jo bachar hain jisne abhi agnation join ghi, uske li usme shahad ko itne attraction na ho. Nekin uske mukawale meh, wo jiske bachin hain, school goeng hain, college goeng hain, that might be a very big attraction for him or her to decide. They are the motivators, of course directly itne shahad motivation, logon ke liye naho proformas ke li motivator shahad naho, lekin usse agnation ko join ke liye aur aane ke liye ek motivation hosak hain. Dobara sabahitne iss konsept ko, ki jo benefits hain, ye time dependent hain. Aap life ek iss phase meh, that dependent hain, uske uspe dependent hain. Og agar hain kisi ekki proformas ko uske saad motivator ke tor pe use kane shahad na effekt naho proformas pe, lekin ye aapki attraction, retention of implies pe bada important role play kar sakte hain. Baah sabahin jaye? Kuki, those benefits can vary from person to person, kisi kiniye kiniye attraction hain, kisi kiniye come hain, kisi kiniye usme zyada hain. Khuda na khas taklu banda, kisi ko kuch medical problem hain. Uske liye wo institution, wo agnation important hogi jaha pe maximum medical coverage memory usko. To wo uski attraction kariye usko waha retain karne ke liye bada important factor hain. Not for performance, but ek setman, insaan ke liye shahad wo itni zyada attraction naho. So, that is what the concept basically I am trying to explain to you. Wo jo am 30-40% ki baat karte hai ki total compensation ka benefits kri shakal me jata hai. Wo kaha kaha harich hota hain agnation ka paisa, usko dekhte hain. Aur ussi phir a mandaza lagainge ki kitne kisi mke benefits agnation can provide to their employees. Insurance payment pe kaffi paisa, usko pay karna parta hain. Insurance can be medical insurance, jiske andar complete medical coverage bhi ho sakte hai. Again, it varies from agnation to agnation and type of worker, a work force is there. Aur phir usko spread bhi kar diye jata hai. Dentist ki lada hoti hai, vn ke liye lada, ike liye care ke liye lada hoti hai. Aur uske lawa bhi, life insurance aur dosi group insurance ki shakal me bhi, agnation can provide you the facility. So, major portion of your benefits can go on that side too. Similarly, jo aap chhutiya karthi hain, vocation te jata hain. Paid leaves hoti hain aapki. So, kuch paisa usshakal me bhi, accompancate ho raha hota hai. Even leave in cashment milti hain aapko. Kuch institution mein hota hai. Ki agar saal ke ain pe, muhtrib kisim ki leaves hogi aage hum dekhenge. So, uske andar if you are not utilizing those leaves, you can have cash for those days. Usse bhi paisa kharch ho rahe hai. Wo paisa kuch hodar bhi jaar aapki benefits hain. Similarly, sometime there is some legal contribution to make. Social security ka concept hota hai. Bhakti wo kitabin aap parin aasme kaafi zikar hai iska. Kuki America ki baat ka hain, UK ki baat ka hain, bhakki country ki jaha pe they are very well established social security system. Jo baat mein, agar aap layoff ho jaate ho. Agar aap ke baat job nahin hain. Agar aap problem mein aajate ho to, they can help you there. Amar hain, pension bhagara ki jo contributions hoti hain, usme kuch paisa bhi jaata hai. Similarly, jo breaks hoti hain, line time pe jaate ho. Aap ka ea-dea bilti hain, bhakki aap ko traveling ho gara mein hota hai. So, wo benefits ke andar bhi, usme se wo benefit ka amount agnation hai decide ke hota hai, some money can go there. And sometime they can have the education assistant program. Jisme miscellinies ko isko kate hain, jisme wo education assistant provide kar sakte hain. Child care ke liye, ek concept bhi aagyaan dekhenge. Ke even child care center they have established at the work for the parents, single mother. Arjun ke batche chhote hain un ke liye. So, everything costs, you know that. So, yeh sara paisa hai, ish sakal mein aap ka benefits ka hota hain mooclif, heads mein jaata hai, waha kharch hota hai. Aur harikka, ispe jaisye mein aap se kaha, ke aajate ke liye isme attraction bhi hai. Aur that is how we always take it as part of the total compensation plan. Isi se, yehi jo aam ne abhi areas dekhne hain, yehi humare benefits ke kisme bhi hain. Inko thoda sa detail mein dekhne hain. Or at the end of those types, we can also have couple of examples. So, let's start those things. Jaisye mein aap se kata ke insurans, benefits. Ab isme kitne kismog insurans hosuhti hai, medical insurans hai, VN insurans hai, dental insurans hai, mental health insurans mein bhi there, life insurans, disability insurans. And again it vary from organization to organization and company to company. And even country to country. In most of the country, they have the compulsory medical insurans on employer responsibility. Aur uske baghain employer aapko rakhni sakta. Humare hain bhi, most the organization, they provide you the medical insurans. Lekin uski phir kya kya cheez cover karne hain, kitne hain aap ki limit hai, that again depend. And depend even on which level we are talking. Kis grade ki, kis class ki baat kare hain, hare ke different us package ke andar hi wo hota hai. Aur iske lawa, kuch organization ne apna medical setup banalia hota hai. Instead of buying insurans, they can have their own setup, where they help, they provide the health facility for their employees. Aur iske lawa phir, group insurans hoti hai, life insurans hoti hai, mohthulif kism ki insurans is bhi, organization provide you. Fully paid by the organization, in some time, partially paid by the company organization or partially paid by the employees. Again, it depend. Employee scorty benefits, jais main aap se kata ke, income scorty kya se aapko ho, aapne retire ho na uske baat kya ho gha, to uske liye kuch pension ka, retirement scorty ke liye, pension ke liye, even sometime, they have special funds, jok comp, aap imply bhi usmek baat contribute kara hota hai aur imply bhi contribute kara hota hai kara hota hai, at the end of your service, you should get a good amount of money for your future expenditures, ko business kara hai usse, kuch aur kaam kara nahi ya, thoda thoda usme se, baaki zindagi ke liye isnamal kara nahi. Yhe bhi boht achha attraction, boht achhi palisi hai, isko implement kari ho ki. Time of benefits, jap ke jab kaam kara ho, darmean me breaks milti hai aapko, kaafi break, type, tea break jise kate hai, lunch break milti hai, amare aap prayers break bhi milti hai, lekin kyu ke ye us time ke andar hota hai, jisko aapko company ne pay kiya ho hai, but still company provide you those facilities so that you should feel easy and you should be more, more productive. Iske lawa, mukh tarif kisim ki leaves hoti hai, sick leaves hoti hai, casual leaves bhi amare aapko, kaha jaata hai mukh tarif leaves ki chakl na, medical leaves bhi hai, spatical leaves hoti hai, amare education me moment bohz hatha chalti hai, ki a certain year of service completion karein, uske baad aap, lek ek leaves, paid leaves milti hai, aap ko kisi aur hodh aare me jaa ke aap, kaam karein, kuch aur sikhin, lekin coming back to our normal casual leaves, medical leaves, to ye bhi paid leaves hoti hai, inme se kuch leaves asi hoti hai, jo saal ke aakhar pe ek khas time frame ke aakhar pe khatam ho jaati hai aap aap usko utilize na karein, aur kuch asi leaves hoti hai, jise aap aur earned leaves bhi kayaat hai, they carry over, wo ek continue kath hi hoti hai, uski bhi khas kuch aadaron kandar limit hoti hai ki aap iss te zyada, usko accumulate nahi kar sakte, yaato usko leave in cashmere leh leh, ya usko the concept is also very interesting, and again see it depends on the culture to culture, country to country, aam aare hain to kya hai, ke log kate hain chhutti nahi kare to bhetare kaam kar letin, and then leave in cashmere leh leh, lekin aap research nahi dek sabat hua, logon ke ispe kaafi articles bhi aate, ki chhutti zoru karne chahi, you need a break, everybody want need a break, competitive pressures hota aadaron ke upar or ultimately the people, to agar aap break nahi lehin ke chhutti nahi lehin ke to kya hoga? aap ki performance ki capabilities ne usko pe fark par sakte hai, stress ho sakte hai, and even you can go for the burnout management ka concept hai, jis me aafar banda tang aajate hai, ke help with it, to aap agnashan they have the policy ke hui khas limit tak to aapko leave in cashmere jati, lekin wo, then ye bhi force kati hain dobara fresh hoke aage par kaam karun so that is a different concept, but here the time of benefits ne wo chhutti hain, ishi tera female ke liye jo family cycle me jate hain, pregnancy ki special leave milti hain to ye sari page leaves hoti hain, ishi tera vocations pe aap jate hain, sometime agnashan provide you special packages for your vocations, wo aapko usme facilitate krte hain, aapko paid vocation leave ke sasat wo aapke aane jaane ka harcha bhi denge, but it depend from agnashan to agnashan. Another newly emerging concept of work scheduling benefits pehle bhi kei mainin discuss ki hain, ke aamaare hain jate hain, ke 7 days a week kaam krte hain, kuchha daare hain wo 6 days a week di kar hain, but wo total jo working hours hain wo utne hi rate hain, 7 days wale shah 3 bhi chhutti kar leti hain onge ya 2.30, lekin 6 days wale, 6 days a week kaam hota hain, but they can have the 5 days a week, to lekin hours total, 40 hours onge complete karne per week. Bakki countries ke andar even, they can have 3 days a week work, ke wo 3 din me apne 40 hour complete karne, 4 din me karne, to it depend. Similarly, even you don't need to complete the 40 hours, you can have the part-time work schedule. 20 hour per week bhi kaam kr sakte hain, lekin phe uske saap se aapke benefit change ho jainge, basic jo shahid wo tani cheez hain hain, lekin benefits me fit, plus minus ho jate hain. Flex time is a very important and emerging concept, apne marzi se jo time aapko sood krta usme hain. Agnation of working round the clock, they can have different shifts, aapko morning shift sood ne krti hain, ab evening ko join krle, and even job sharing, agar mia bhi we do not talk to re, to aadala time krle, and even in certain cases they can allow you to take work at your home and do it, because they are mainly concerned about the work, does not matter where you are doing, so that is again a kind of benefits. Agnation can also provide you services, like education assistance, aap apne qualification improve krna chaate hain, they can sponsor you, or even they can send you with pay leave, and leave, go and get your qualification. Financial services bhi aapko agar ko masla hain, aapko financial consultant ki help chahiye, agnation can help you there, and for even social services too, aapki apne social life ke liye kuch help chahiye, usme bhi aapko agnation assist krti hain. Family oriented, kuch benefits bhi hota hain, usme piche bhi kuch discuss ke hain aapne, childcare, elder care, aamaaraya to allah karam hai, aam oman joint family system hota hain, nobody worried, somebody that at home to take care of your elders, lekin o society ki jaha ki aap kitabe par hain, waha pe things are different, everybody has to work for survival, and so who will take care of the kids, if they are not going school, and who will take care of the elders, to phir waha pe olds home hai, baby sitting hoti, childcare centers hoti hain, to kya hota hain ke wo parents hai, mother hai, baki log hain, wo apne elders ko old home mein bhehidehte, bachon ko baby sitter ke paas ya childcare center mein bhehidee hain, but see what is the problem here, let's take example, if kisi ka bacha ya bachi bimar hain, wo jab usko baby sitting ke paas, ya childcare center mein chhor ke work pe aagin hain, to kya uski aap saari koncentration to kaam bhe nahi hogi, she might be worried about the kid, now agnation has realized this point what now agnation are doing, now some agnation they have their own childcare center at their workplace, dhaan ke agar aap kaam kar hain, aur aap ke saar chote bachhe bhi hain, aap ke bachhe bhi uski kisi floor pe, aap chota childcare center hain, and whenever if you need, if there is any emergency, you can quickly go there and check it, uske lawa financial bhi aap ho kuch help mil sakti hain, like if you are working and you have some dependent on you, like the elder care ke liye, child care ke liye, aap ko kuch financial assistant bhi kuch agnation deti hain, and that is all covered under benefits part, relocation programs bhi, usme bhi agnation aap ko help krti hain, wisi aap hain hain hain bhi kuch under rule bhi hain, kya agar male, mia, bhi, jo no, do no working hain, to kisi aap ki transfer kisi duisi jaga pe, tabhi possible aap uski mia ko yoski spouse ko, bhi waha uske ishita aap ki aap mil jai, take dono aap ek jaga pe kaam kr sakti hain, aur agar aap kisi je, aap ek place se duisi jaga shift hote, usme bhi agnation aap ko help krti hain, transportation may help kr sakti hain, extra bhi aap ko kuch financial assistant mil sakti hain, so that it will be easy for you to relocate from one place to another place. Some other benefits, ushita ke boh sare aur bhi ho sakti hain, agnation ke aap ko investment ki opportunity mil sakti hain, let's see if your agnation is producing something, gharia banari hain, refrigerator banthe hain aap ke agnation ke aap to aap ko discounted rate pe wuch easy mil sakti hain, education institution me aap ke bache waha pe discounted rate pe par sakti hain, it is not by law, but again people do these type of things, similarly insurances ko aam ne dekh liya, recreational activities ke liya aap ko help ki jati hain, agnation ke apne clubs hota hain, apne, ushme mukh tarif kisim ki game, mukh tarif in sports mein activities me aap ko help ki jati hain, altoriums hota hain, ke aap apne social activities hai, function hai maang kar sakein, so yeh sari aap ke benefits ke andar cover hota hain, family care benefits hain and you name it, usko aap hud bhi sochi aur kya aur sakti hain. kya ushme mukh tarif reference meinin ke, ushse raf aap ki ushke liye ke nothing we are not missing anything, the basic concept is same thing, let's see some examples about those benefits, retirement benefits, kya ushse raf aap ke ushme logon ke pass early retirement options bhi ho sakti hain, pre-retirement counseling bhi ho sakti hain ke retirement holdin se pehle aap ko counseling ki jaya ke aap aage kya karenge, yeh jo aap ko time agnashan provide you certain trainings you see now, you are going home after completing your service here, to aage jo vaktar hain aage jo nahi technology aagi hain, nahi feel khulke hain, to why don't agnashan provide you certain kind of skill oriented trainings so that when you go in the market again, so you should have a better opportunity to get some job or at least keep you busy there, disability retirement benefits, khuda ana khasta you disable ho jata kisi baya se ush ke liye kya benefits ho sakti hain yeh bhiye daare, plan karte hain soh chti hain or benefit me shaman karte hain now, we have discussed about the health benefits, like insurance hoti hain, health facilities aap ko provide hoti hain, but only when you are in the service, what about after the retirement, some agnashan can have some systems, some benefits that even those facility can be provided to you after retirement, may not be the complete but of course some basic basic requirements of healthcare emergency, ush mein khush aap ko benefit me shaman karte hain so yeh bhi, retirement benefits kanda shaman kya jaa sakti hain iskila wajya se, pension plan ki baat khiti, ke jab aap koi, aap ne service kyi hoti hain to ushi ke saathi ko pension, if they have the pension system some agnashan can go about this pension thing and some may not be they have always a contact appointment they can free hoti hain kya jaha pension hoti hain maa thori, may be but the other without pension there are more basic salaries there are more there is a concept in your text silver handshake you must have heard that in Pakistan we call it golden handshake premature retirement, early retirement agnashan gives you financial incentive that you are fine, because what are the benefits of this let's see that they don't have the financial resources to continue all those liabilities so what they do is they give you the opportunity to offer early retirement now early retirement may silver shake handshake golden handshake hand shake in this you are told to wait for 10 years and for 10 years there are big liabilities because they have to give you benefits there are many other activities to save that agnashan can provide you the basic time difference according to that compensation gives you a lot of money that you can take retirement so this also comes in those benefits because you are given the opportunity you are not taken without the benefits other than that before that pre-require retirement as I said for you there can be counselling seminars, workshops you are told that now you are when you are leaving our agnashan what is happening in the market what are the strengths what are the opportunities there what are the threats there in the market and if you want to survive there what should you do and even they can help you to get the pension how to invest it what options do you have what is all this these are your benefits your agnashan is taking care of your interest we are talking about pension there are two types of pension there are contributory plans and a non-contributory plan what is contributory in which your employer is paying and you are also paying and what is non-contributory that only the employer is giving you the benefits and again it depends from agnashan to agnashan or the kind of job we are talking about we also discuss about the family-oriented benefits family and medical needs dependence care alternative work commitments job sharing I have already discussed this with you not only you we know that you are not the single person you belong to a family or family saara it can depend on you because of that dependence in those benefits agnashan does these things I have talked about social recreation in which even you get courts tennis, squash, badminton table tennis facilities are arranged for you sponsored events companies, cafeterias are also provided even food services you get sponsored food and the big production area at that reasonable price you get good food at work you get provided you get more recreation programs you get trips parties and functions these are all social and recreation in the benefits that are included in your benefits but remember it is not compulsion on agnashan path it varies from agnashan to agnashan we talked about time off there are holidays breaks these are all included in your benefits even we can see some benefits like I said the food services food is also provided there on site health services can be provided you get insurance medical insurance now in emergency you can use these hospitals are cleaning and the rest can go to a normal doctor this is your limit but apart from this there are big organizations on site health facilities medical facilities are arranged for you and why is all this again to create the relationship things in the organization and the purpose is that you work for the institution for the welfare and agnashan is watching your interest well wishing that is how it should work and this continues apart from that sometimes you can get the legal services too if you need some legal services your institution can provide you the help financial planning housing and moving if you want to move from one place to another institution can help you even sometime some organization they pay you the extra funds for the settlement for the furnishing transportation facilities sometimes they pool it and again depending on which level of employee we are talking if it is executive they can provide you the chauffeur driven car you can get assistance in purchasing you need a car you need a loan credit limit for that and they can also provide they give the awards to their employees all these things are in the package and what is the benefit it is your compensation we call it indirect compensation and what is in direct salary check that is your direct compensation and it is indirect compensation bonus not every organization gives the bonuses but yes some organizations do give the bonus and it requires how much salary is on which level how much bonus you want to get and this is on the performance everyone does not get bonus the extraordinary performance they get bonus in the organization and in the long term you get incentives you get stock option you get different stock option you get different stock option you can have the cash award or you can the organization give you the opportunity if they float in the market you can buy that stock and through this you can become the partner within the organization too but they keep a limit the maturity level so these are very good incentives sometimes people prefer to buy the stocks rather than the cash awards we talk about the long term incentives picking organization pour a lot of money for the benefits they are spending a lot of money but what are we getting in return what is the benefit of the organization to see this we should ask certain questions to ourselves what is the benefit of the organization are you company's benefits adding value value to what organization's image pay performance pay what and you have to conduct benefit need analysis periodically and during this analysis you should ask question like how much total compensation should be provided what part should be benefit comprises of the total compensation why are we offering each type of benefits which imply get what because to see this how much is needed how much benefit should be given you should get a survey so that you can see the benefit you should collect the effectiveness of decision making like what are your goals for offering benefits why are you doing it like if it is attraction, attention productivity or what or design study to assess effectiveness let's see if it is effective or not to effectively manage good benefits there are some guidelines for proper management it is necessary that we should communicate the benefits effectively communication is critical here sometime in the organization people don't know about the benefits how many types of benefits most implied don't know about those benefits benefits communication is very essential how can it be should be sent annual personal statements of benefits how many benefits you get how much amount and for that what we have seen human resource information system on top of that you can keep this information for your employees it is very easy try to be flexible in benefits so that everything is beneficial and you should also scan the environment what are the employees preferences what benefits you have provided what do different generation look for the benefits senior people have more benefits young people have more benefits for the new generation it is again you can see this on the assessment base what about benefits for the part-timers as I told you they work for 20 hours a week now this scanning will help you not only to manage benefit today but of course it will help you to decide about the benefit for the future as I told you different generation are working for you and each generation may have a different point of view for those different benefits there may be some benefit attraction for someone else so accordingly you should decide so that you should get maximum benefit of those benefits similarly during scanning you can also see that whether your benefits are kind of in the at the same direction where your corporate strategy is because you have to relate it from the performance in the same line so these are very important concern about benefits so remember that benefits is part of your compensation and it is in direct compensation there are some points because the time constraint is there we will try to cover during our next lecture let us stop it here enough for today quickly go through what we have covered today we try to understand the importance of benefits that this is the part of total compensation and we call it indirect compensation and we discuss why we should focus on benefits and in that type of benefits we have discussed a lot in the deal if there is nothing left then you can read your texts and how we can manage it and return on employees benefits we did not cover today we will see in the next lecture in the next lecture so what about next session so next time we will focus on performance based we will try to understand the role of money in the performance so I have to go now but I am sure that you will work hard till next time Allah Hafiz and Salam Alaikum