Ancillary benefits
| Ancillary benefits |
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Ancillary benefit is a secondary benefit which is obtained as an addition to primary benefit, without additional work or expense. The ancillary benefits are most popular term in group health insurance. The company can offer ancillary benefit to employees, which consists of e.g. dental of vision insurance. It's a kind of preventive care, not only acting when problems occur.
75% of employees complain that they have no influence on the choice of non-wage benefits. Employers usually make their own decisions about benefits granted to individuals. This approach is wrong. When creating an incentive system, the needs of employees should be taken into account, so talk to them about non-pay benefits that would interest them. Thanks to a reliable diagnosis of the expectations of employed persons, it is possible to identify benefits that will have a real impact on employee motivation.
It is also worth making the receiving of further benefits from the workplace conditional. If the manager has the same rich package of non-salary supplements, as the assistant president, the benefits will cease to fulfill their motivational function.
Competition analysis is necessary. People working in a given industry often review the benefits that individual employers have to offer. If it turns out that you can get a richer add-on package at company X, the employee will certainly try to hire a company. However, you can not get crazy and imitate your rivals in everything. A reliable diagnosis of needs allows you to offer benefits that will attract and effectively motivate the best specialists in a given industry.
Types of benefits
Types of benefits in the company:
- Basic medical care
- Sports activities (gym, swimming pool, fitness)
- A business telephone for private use
- A business computer for private use
- Integration events
- Training, vocational courses
- Life insurance (private or group)
- Language training
- Flexible working time
- Remote work
- Reimbursement for travel
- Co-financing for holidays
- Meals for employees
- Additional free for parents
- Supporting volunteering on free days
- A room to rest in the office
Importance
That can be beneficial to company in several ways:
- motivates employees to better work,
- helps early find more costly problems with health and solve them quicker and cheaper,
- company is viewed as better emmployer.
- decreasing number of days when employees are out of work due to their health
Disadvantages:
- their attractiveness to employees requires relatively high wages in the enterprise
- substantial difficulties related to its development and implementation
- convincing employees about the attractiveness of material benefits instead of cash
- high administrative costs for small enterprises
In Western Europe and in the United States, benefits are one of the most important elements of employee motivation. They are also one of the most interesting elements to encourage employees to work in companies that use and offer benefits to their employees (and their families). In some companies, benefits are an alternative to low wage increases, and the choice: benefit or increase is for employees.
Allowance
Part of remuneration for work provided in kind in addition to and independently of remuneration for work. Currently, the deputies play a marginal role and are only used in some industries, such as mining. The legal basis for granting a deputy is usually collective labor agreements. Part of the remuneration paid in the form of a deputatum can not be replaced by a one-off financial equivalent.
Benefits differ from deputies in that they are non-payment benefits offered by the employer in addition to basic pay for work. Benefits do not reduce the financial amount of remuneration, but are an additional element serving the employee. The amount of remuneration paid to the employee is not reduced even when the employer decides to finance additional employee benefits. Benefits in Poland are used by employers as incentive tools.
References
- Burtraw D., Krupnick A., Palmer K., Paul A., Toman M., Bloyd C. (1999). Ancillary Benefits of Reduced Air Pollution in the U.S. from Moderate Greenhouse Gas Mitigation Policies in the Electricity Sector. Discussion Paper 99-51, 5-11.
- Groosman B., Muller N., O’Neill E. (2009). The Ancillary Benefits from Climate Policy in the United States. middlebury College economics discussion paper, no. 0920, 2-5.
- Markandya, Anil; Rübbelke, Dirk T.G., (2003). Ancillary Benefits of Climate Policy. Nota di Lavoro, No. 105, 2-120.
- Van Vuuren, D. P., Cofala, J., Eerens, H. E., Oostenrijk, R., Heyes, C., Klimont, Z.,... & Amann, M. (2006). Exploring the ancillary benefits of the Kyoto Protocol for air pollution in Europe. Energy Policy, 34(4), 444-460.
Author: Natalia Wróblewska
