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Fringe Benefits

Mib 17 HRM Assessment Author:PERCY VENEGAS

Human Resource Management Course MBA in International Business

FRINGE BENEFITS
The Basics

WHAT

WHY

HOW

Non-wage compensations additional to salary

Increase economic security of employees Tax shelters

Plans include: Medical/dental Dependent care Retirement benefits Legal assistance Employee discounts

Human Resource Management Course MBA in International Business

FRINGE BENEFITS
Place matters

The benefits are localized


FB serve as complementor of weak public social security in countries such as USA, where medical, prescription, vision and dental plans are popular In developing regions of Latin America companies cosponsor alternative wage systems such as Credit Unions that provide savings plans and low interest loans

Human Resource Management Course MBA in International Business

FRINGE BENEFITS

Reputation matters Companies that score high in Best to Work For rankings are know for attracting and retaining the hard to find talents During the contract negotiation to hire Senior level executives Shares/Options packages and Bonuses are usually more important than salaries.

Human Resource Management Course MBA in International Business

FRINGE BENEFITS
The challenges... Sustainability
Demographic trend towards aging population in develop countries Poor managing of funds in capital markets

Globalization
Global corporations should meet the expectations of their recruited talents (associated with their brand) and comply with social security local law at the same time, increasing their costs in non wage benefits

Human Resource Management Course MBA in International Business