Human Resources Management Course by ATG Educational - HTML preview

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2.2 Benefits

When researching local practice on salaries, it is helpful to also collect information about staff benefits that other organisations provide. Organisations that cannot afford to pay high salaries could offer a good benefits package in order to attract staff.

Benefits could include:

• medical cover
• death in service provision
• provision for retirement
• various types of leave
• allowances such as free transport to and from work
• flexible working hours
• learning opportunities
• staff retreats
• personal use of office equipment
• accommodation.

In this section we look in detail at some of these types of benefits. It is not always necessary or possible to provide all of these benefits to staff, but according to the local situation it may be appropriate to provide some of them. Whatever benefits are provided, it is important that they are provided to all categories of staff where possible.

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For medical cover and death in service, insurance is sometimes available. In some countries, employment law states that certain types of insurance must be provided. Types of insurance that organisations could provide are given in the next table.

Organisations usually find it easiest to provide such benefits by taking out policies with commercial insurance companies. However, this is not always possible. Where insurance companies are not accessible, the organisation could consider whether it can provide such benefits itself. The box on the next page provides some advice.

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Once each type of insurance scheme is in place, the details must be communicated to staff members. They should be made aware of the basis of cover, essential criteria and exclusions, and how to claim from the policy.

NOTE There are some types of medical provision that enable people to carry out their jobs, particularly those who travel. These may include vaccinations, malaria treatment and mosquito nets. These should be included with the equipment that is provided to staff as relevant to their role, rather than viewed as a benefit.

Provision for retirement: in some countries it is either customary or a legal requirement for employers to contribute towards a staff member’s future retirement. Such contributions are usually a percentage of an individual’s salary and are made in addition to the salary. The contribution should be clearly indicated on the payslip. Relocation allowance: it is worth considering providing a relocation allowance for staff who need to move residence to another area of the country in order to work for the organisation. Such an allowance could be a contribution towards transporting family and possessions to the new location. It could also provide for temporary accommodation after relocation.

Leave
Policies for the following types of leave should reflect local law and common practice.

Annual leave: it is very important for staff to have a certain amount of rest from work during their contract. All staff members should be entitled to a number of days of paid annual leave.

Issues to consider include:

  How annual leave will be calculated for part-time or short-term contracts. For example, someone on a three-month contract could be allowed to take one-quarter of the annual leave entitlement of permanent staff. Someone who works half-time could be entitled to take half the number of days that a full-time member of staff can take in one year.

  How staff will apply to take their annual leave. It is important that all staff members do not take annual leave at the same time. Where possible, leave should be taken proportionately through the year.

  Whether staff members can carry forward unused annual leave to the following year.

National holidays: a list of recognised national and local holidays should be prepared and circulated to all staff members. Provision should be made for staff members who have to work on any of those days. For example, they could be paid extra or they could take an additional day’s paid leave.
Overtime: organisations should consider how staff are compensated if they work more than the normal number of hours per week. For example, they could be paid for those hours, sometimes at a higher hourly rate of pay, or they could be awarded with additional leave.
Short-term sick leave: short-term sickness is usually defined as a periods of sickness that last less than a certain number of weeks. Sometimes, local law or practice requires staff to produce a certificate from a doctor if they are absent from work for more than a certain number of days. Sick leave should never be viewed as additional annual leave. A certain amount of sick leave should be paid, but it is wise to set an annual limit to discourage staff from abusing this benefit.
Long-term sick leave: long-term sick leave is usually defined as a period of sickness of more than the period set for short-term sick leave. Often, allowances for long-term sickness are based on the length of employment. For example, staff members who have worked for the organisation for over one year may be entitled to more paid long-term sick leave than those who have served the organisation for less time. If a staff member is unable to work for a long period of time as the result of an accident at work, it may be appropriate for the organisation to provide them with greater support than usual. Staff on long-term sick leave should be monitored very carefully. Organisations should remain in contact with staff members who are on long-term sick leave in order to show concern for the staff member, and to assess when they can return to work. If the staff member is unable to carry out their job as a result of an illness or accident, the organisation may need to review their position and consider whether a more appropriate position could be offered. Paid sick leave usually only applies to staff who have an employment contract. It would not usually apply to those carrying out casual work.

Issues to consider include:
Maternity and paternity leave:

  How long a staff member needs to work for the organisation before they are entitled to paid maternity or paternity leave.
  How many weeks of paid maternity leave women can take. Consider whether this should be taken at a particular time, such as a certain proportion of the leave taken immediately after the birth of the child. Consider whether women can accumulate annual leave while they are on maternity leave. Consider whether to allow women to take additional unpaid leave.
  How many weeks of paid paternity leave men can take, and when they can take it. Consider writing guidelines for staff, which include information about the documentation that will be required, such as medical statements and birth certificates.

Compassionate leave: compassionate leave should usually apply only to situations where a close relative such as the spouse, legal dependent, parent or sibling of a staff member has died. In cultures where the extended family is strong, it is important to consider this carefully and state clearly the circumstances under which compassionate leave can be taken.

QUESTIONS TO ASK YOURSELF WHEN RUNNING THE HR DEPARTMENT OF AN ORGANIZATION:

 

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