15-11-2012, 05:20 PM
CASE STUDY ON BENEFITS AT COGNIZANT TECHNOLOGY SOLUTIONS
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INTRODUCTION:
Benefits are indirect compensation because they are usually extended as condition of employment or with intention of inducement or motivation and are not directly related to performance. Basic employee benefits are critical to ensuring employee satisfaction at work. By implementing innovative employee perks, employees are more productive and organizations retain hard-to-find talent. Employee benefits strategy is critical to ensuring you attract and retain talented individuals. Hence, the employee benefits strategy is necessary for growth. Most highly successful organizations, such as Google, WalMart, and MIT, all have innovative basic employee perks.
CONTENT OF PERKS
Perks refers to nonstandard benefits that are unusual or for which only a limited number of employees are eligible In organizations, perks are often viewed as an incentive or a form of gratitude that is offered to executive level employees or employees with seniority or longevity – something that sets the employee aside from the average employee. Perks also refer to employee benefits that are discretionary and optional on the part of an employer. Perks do not necessarily involve a monetary cost to the employer. Perks may consist of privileges, rewards, or options.
ELEMENT OF COMPENSATION: PERKS
Perks are used to recognize exceptional contribution, performance, commitment to culture and values. Perks are in addition to the payment for example: car fuel, insurance, leave , work from home etc.
SUB ELEMENT: LEAVE ‘Leave’ is a basic benefit which an employee seeks in his job. Leave is a short term benefit provided by the company to its employees. ‘Leave’ can be Vacation leave, Sick leave, Compensatory off, Maternity leave and Personal leave.
DEFINING THE EFFECT
Though it may seem counterintuitive, providing paid family and medical leave when people cannot work due to responsibilities helps keep people employed. In the short term it keeps people away from work, but in the long term it reduces the number of people who have to quit their jobs when they need time off to care for a seriously ill family member or when they have a new child. Paid medical leave serves this same purpose for workers who have short-term but serious illnesses that prevent them from working.
LEGAL COMPULSIONS
According to the labour laws in India, at least seven days leave for national and other festivals. Republic day, Independence day and Mahatma Gandhi’s birthday are compulsory holidays.
Similarly minimum seven days casual leave and fourteen days sick leave is provided to employees. These leaves are paid means employees get the wages of these leaves as they had actually worked for that day.
Cognizant Technology Solutions (CTS) : Example
The company provide for the following types of leaves:
Vacation Leave
Vacation is provided to enable employees to take time off their busy schedules to rest, recuperate and revitalize. Employees are entitled to avail a total of 12 working days of vacation per year. Vacations are credited to the employee’s leave account at the end of each month at the rate of 1 working day per month of continuous service with the Company. Vacation Leave is not en-cashable.