One of our client wanted to know what benefits (in kind) can be given to the employees apart from salary for higher employee retention and also should not be taxable.. Pls guide us on the same.
From India, Vadodara
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5From India, Vadodara
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Designing an Effective Welfare Policy for Employee Retention
This is in reference to discussions regarding designing a Welfare Policy for employees to promote loyalty and a sense of belonging, as well as an effective tool towards employee retention. The welfare of employees is a vast subject, and its significance to both large and small enterprises assumes a vital role, especially considering high attrition rates. This policy must strike a fine balance between available resources and the perceived notion of effective welfare measures.
It has been observed through experience that any welfare measure loses its charm among employees shortly after implementation. In my opinion, the focus should be on building an employee-friendly work culture and office environment. In the HR world, it is often said that people do not leave jobs; they leave bosses. Therefore, along with the implementation of welfare measures, we need to address issues with seniors for effective mentoring, job rotation, and delegation. This is one aspect that needs to be addressed.
Suggested Welfare Measures
Here are a few welfare measures suggested for your consideration, which can be introduced progressively:
- Personal accident insurance.
- Transportation to and from the office.
- Interest-free loans to junior employees.
- Periodic get-togethers with employees and families.
- Casual dress on Mondays or Fridays.
- Medi-claim.
- Routine health checks at the company's expense.
- Best attendance award.
- Introducing an employee referral system.
Best Regards,
BS Rana
From India, Hyderabad
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This is in reference to discussions regarding designing a Welfare Policy for employees to promote loyalty and a sense of belonging, as well as an effective tool towards employee retention. The welfare of employees is a vast subject, and its significance to both large and small enterprises assumes a vital role, especially considering high attrition rates. This policy must strike a fine balance between available resources and the perceived notion of effective welfare measures.
It has been observed through experience that any welfare measure loses its charm among employees shortly after implementation. In my opinion, the focus should be on building an employee-friendly work culture and office environment. In the HR world, it is often said that people do not leave jobs; they leave bosses. Therefore, along with the implementation of welfare measures, we need to address issues with seniors for effective mentoring, job rotation, and delegation. This is one aspect that needs to be addressed.
Suggested Welfare Measures
Here are a few welfare measures suggested for your consideration, which can be introduced progressively:
- Personal accident insurance.
- Transportation to and from the office.
- Interest-free loans to junior employees.
- Periodic get-togethers with employees and families.
- Casual dress on Mondays or Fridays.
- Medi-claim.
- Routine health checks at the company's expense.
- Best attendance award.
- Introducing an employee referral system.
Best Regards,
BS Rana
From India, Hyderabad
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Thanks, Ranasir, for the prompt reply. My client is planning to give some discount coupons to the employees; can that be included, and will it be taxable? Also, can you guide us on some such corporate coupon vendors, please? Thanks again.
From India, Vadodara
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From India, Vadodara
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Non-Taxable Employee Benefits for Retention
Meal coupons up to ₹2,600 per month are not taxable. Gift coupons up to a maximum of ₹5,000 per annum are also not taxable. Additionally, you can include a subsidy on higher education, creating a win-win situation where both parties benefit from it.
The management can establish a service agreement and retain the employee for a minimum of 2-3 years after completing higher education, which equates to at least 1-2 years during the education term and an additional 2-3 years after.
The superannuation scheme is also a tax-free component.
Regards,
Kamesh
From India, Hyderabad
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Meal coupons up to ₹2,600 per month are not taxable. Gift coupons up to a maximum of ₹5,000 per annum are also not taxable. Additionally, you can include a subsidy on higher education, creating a win-win situation where both parties benefit from it.
The management can establish a service agreement and retain the employee for a minimum of 2-3 years after completing higher education, which equates to at least 1-2 years during the education term and an additional 2-3 years after.
The superannuation scheme is also a tax-free component.
Regards,
Kamesh
From India, Hyderabad
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Dear Mr. Kamesh, thanks for your valuable inputs, can you pls guide us with some names who provide such discount / gift coupons plsss so that we can contact them... Thanks again
From India, Vadodara
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From India, Vadodara
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Meal Coupons and Gift Coupons
Meal coupons are available from providers like Sodexo and Ticket Restaurant. Many competitors are present in the market. Gift coupons are offered by big malls such as Tanishq and Lifestyle. They can also be obtained through gift cheques from banks.
Superannuation
For superannuation, you can contact LIC.
Regards,
Kamesh
From India, Hyderabad
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Meal coupons are available from providers like Sodexo and Ticket Restaurant. Many competitors are present in the market. Gift coupons are offered by big malls such as Tanishq and Lifestyle. They can also be obtained through gift cheques from banks.
Superannuation
For superannuation, you can contact LIC.
Regards,
Kamesh
From India, Hyderabad
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A very good afternoon. Mr. Kamlesh's input is really valuable. However, one should check the utility of "Meal Vouchers / Gift Coupons" at different outlets. A few big retail chains have stopped accepting such meal vouchers / gift coupons at certain places. This is just for your information. Think before you leap.
Cheers!!!
Abhishek
From India, Vadodara
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Cheers!!!
Abhishek
From India, Vadodara
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