A STUDY ON THE EFFECTIVENESS OF EMPLOYEE

BENEFITS OFFERED BY KARIMTHARUVI TEA

ESTATE TO THEIR WORKERS
Submitted By

Ms. DEVU.K

Reg No: 2235F0248

Under the Guidance of

Mr. R. KOUSHIK

Assistant Professor, Nehru College of Management

Submitted in partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Bharathiar University, Coimbatore – 641046.

NEHRU COLLEGE OF MANAGEMENT

Affiliated to Bharathiar University, ISO 9001:2000 certified and Approved
by AICTE Coimbatore – 641105

November 2023
 BONAFIDE CERTIFICATE

This is to certify that the project report entitle A STUDY ON THE EFFECTIVENESS OF
EMPLOYEEBENEFITS OFFERED BY KARIMTHARUVI TEA ESTATE TO THEIR
WORKERS submitted to the Bharathiar university in partial fulfilment of the requirement for
the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a record of
original research work done by Ms DEVU.K (Reg: 2235F0248) during the period of 45 days of
her study in Nehru College of Management ,Coimbatore under my supervision and guidance and
it has not formed the basis for the award of any Degree/Diploma/Associate Fellowship or other
similar title to any candidate in any university.

Mr. R. Koushik Dr. L. Karthikeyan

Faculty Guide Director

Dr. R. Moses Dainel

Principal

Viva-Voce Held On……/……/……….

Internal Examiner External Examiner

 DECLARATION

I hereby declare that the project entitled A STUDY ON THE EFFECTIVENESS OF

EMPLOYEE BENEFITS OFFERED BY KARIMTHARUVI TEA ESTATE TO THEIR
WORKERS submitted to the Bharathiar University in partial fulfilment of the requirement for
the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a record of
original research work done by me during the academic period 2022-2024 under the guidance
of to Mr. R.KOUSHIK, Assistant Professor in MBA and it has not formed the basis for the
award of any Degree/Diploma/Associate ship/Fellowship or other similar title to any candidate
in any university.

DATE: DEVU.K
PLACE: COIMBATORE REG.NO :2235F0248
 ACKNOWLEDGEMENT

This project wouldn’t have been completed without the support and help of several persons. I
express my sincere thanks and gratitude to all of them.

First of all, in all humility and in a spirit of joy and fulfilment, I thank the Almighty God For
blessing me with wisdom and for helping me to complete my project.

Wish to express my heartfelt gratitude to Dr. P. KRISHNAKUMAR, CEO & Secretary,

Nehru group of Institutions, Coimbatore. Dr. R. MOSES DANIEL, Principal, Nehru College of
Management for his encouragement and help through the course.

I would like to express my thanks to Dr. L. KARTHIKEYAN, Director, Nehru College of

Management, and all other staffs.

I would like to express my thanks and deep sense of gratitude to my guide Mr. R KOUSHIK,
Assistant Professor Nehru College of Management for his valuable guidance and all the help
throughout the project.

I also wish to express my gratitude to my family, relatives and friends for their immense help
and support extended to me during various phases of this project.
 TABLE OF CONTENTS
SI.NO CONTENTS PAGE
NO
1 INTRODUCTION
1.1 INTRODUCTION OF THE STUDY 1
1.2 OBJECTIVE OF THE STUDY 33
1.3 HYPOTHESIS OF THE STUDY 33
1.4 STATEMENT OF THE PROBLEM 34
1.5 SCOPE OF THE STUDY 34
1.6 NEED OF THE STUDY 34
1.7 COMPANY PROFILE 35
1.8 SUMMARY 36
2 REVIEW OF LITERATURE
2.1 LITERATURE REVIEW 37
2.2 RESEARCH QUESTION 48
2.3 SUMMARY 48
3 RESEARCH METHODOLOGY
3.1 RESEARCH METHODOLOGY 49
3.2 RESEARCH DESIGN 49
3.3 SAMPLE DESIGN 50
3.4 DATA COLLECTION 50
3.5 PERIOD OF STUDY 50
3.6 TOOLS USED IN STUDY 51
3.7 LIMITATIONS OF THE STUDY 51
4 DATA ANALYSIS AND INTERPRETATION
4.1 DATA ANALYSIS AND INTERPRETATION 52
5 FINDING, CONCLUSION &SUGGESTIONS
5.1 FINDINGS 76
5.2 CONCLUSION 78
5.3 SUGGESTIONS 79
BIBLIOGRAPHY
ANNEXURE
 LIST OF TABLES

SI.NO CONTENT PAGE NO

4.1 AGE WISE CLASSIFICATION OF THE RESPONDENTS 52

4.2 GENDER WISE CLASSIFICATION OF THE RESPONDENTS 53

4.3 WORK EXPERIENCE WISE CLASSIFICATION OF 54

RESPONDENTS

4.4 ARE THE RESPONDENTS ARE AWARE ABOUT THE 55

EMPLOYEE BENEFITS OFFERED BY THE COMPANY

4.5 RESPONDENTS OPINION REGARDING THE INFORMATION 56

RECEIVE ABOUT THEIR BENEFITS PLAN

4.6 RESPONDENTS OPINION REGARDING THE INFORMATION 57

RECEIVE ABOUT THEIR BENEFITS PLAN

4.7 RESPONDENTS OPINION ON MEDICAL FACILITY 58

4.8 RESPONDENTS OPINION ON LEAVE FACILITIES 59

4.9 RESPONDENTS OPINION ON BONUS 60

4.10 RESPONDENTS OPINION ON PROVIDENT FUND PAYMENT 61

4.11 RESPONDENTS OPINION REAGARDING THE TRANSPORT 62

FACILITIES

4.12 RESPONDENTS OPINION REGARDING THE HOUSING 63

FACILITY

4.13 RESPONDENT OPINION REGARDING THE POST 64

RETIREMENT BENEFITS

4.14 RESPONDENTS OPINION ON THE EMPLOYEE STATE 65

INSURANCE
4.15 RESPONDENT OPINION ON THE GRATUITY FACILITY 66

4.16 RESPONDENTS OPINION ON THE PAID TIME OFF 67

4.17 RESPONDENT OPINION ON THE CONVEYANCE 68

ALLOWANCE OFFERED BY THE COMPANY

4.18 RESPONDENT OPINION ON THE FESTIVAL ALLOWANCE 69

4.19 RESPONDENT OPINION ON THE REGULAR INCREMENT 70

4.20 RESPONDENTS OPINION REAGARDING THE EMPLOYEE 71

BENEFITS MEET THEIR NEEDS

4.21 EXPERIENCE OF THE RESPONDENTS * EMPLOYEES ARE 72

AWARE ABOUT THE EMPLOYEE BENEFITS OFFERED BY THE
COMPANY

4.22 AGE * RESPONDENTS OPINION ON THE TYPE OF HEALTH 74

INSURANCE ENROLLED IN COMPANY
 LIST OF CHARTS

SI.NO CONTENT PAGE NO

4.1 AGE WISE CLASSIFICATION OF THE RESPONDENTS 52

4.2 GENDER WISE CLASSIFICATION OF THE RESPONDENTS 53

4.3 WORK EXPERIENCE WISE CLASSIFICATION OF 54

RESPONDENTS’

4.4 ARE THE RESPONDENTS ARE AWARE ABOUT THE 55

EMPLOYEE BENEFITS OFFERED BY THE COMPANY

4.5 RESPONDENTS OPINION REGARDING THE INFORMATION 56

RECEIVE ABOUT THEIR BENEFITS PLAN

4.6 RESPONDENTS OPINION REGARDING THE INFORMATION 57

RECEIVE ABOUT THEIR BENEFITS PLAN

4.7 RESPONDENTS OPINION ON MEDICAL FACILITY 58

4.8 RESPONDENTS OPINION ON LEAVE FACILITIES 59

4.9 RESPONDENTS OPINION ON BONUS 60

4.10 RESPONDENTS OPINION ON PROVIDENT FUND PAYMENT 61

4.11 RESPONDENTS OPINION REAGARDING THE TRANSPORT 62

FACILITIES

4.12 RESPONDENTS OPINION REGARDING THE HOUSING 63

FACILITY

4.13 RESPONDENT OPINION REGARDING THE POST 64

RETIREMENT BENEFITS

4.14 RESPONDENTS OPINION ON THE EMPLOYEE STATE 65

INSURANCE
4.15 RESPONDENT OPINION ON THE GRATUITY FACILITY 66

416 RESPONDENTS OPINION ON THE PAID TIME OFF 67

4.17 RESPONDENT OPINION ON THE CONVEYANCE 68

ALLOWANCE OFFERED BY THE COMPANY

4.18 RESPONDENT OPINION ON THE FESTIVAL ALLOWANCE 69

4.19 RESPONDENT OPINION ON THE REGULAR INCREMENT 70

4.20 RESPONDENTS OPINION REAGARDING THE EMPLOYEE 71

BENEFITS MEET THEIR NEEDS

4.21 EXPERIENCE OF THE RESPONDENTS * EMPLOYEES ARE 72

AWARE ABOUT THE EMPLOYEE BENEFITS OFFERED BY
THE COMPANY

4.22 AGE * RESPONDENTS OPINION ON THE TYPE OF HEALTH 74

INSURANCE ENROLLED IN COMPANY
 EXECUTIVE SUMMARY

This comprehensive study determines the effectiveness of employee benefits provided by

karimtharuvi tea estate to its workers. The research aims to understand how these benefits
impact worker satisfaction, productivity, and overall well-being. Through surveys, interviews,
and data analysis, it was found that the tea estate's benefits package plays a pivotal role in
enhancing employee morale and retention. Workers who receive attractive benefits such as
health insurance, housing, and education assistance tend to exhibit higher job satisfaction and
increased loyalty to the estate. This positive correlation between benefits and employee well-
being ultimately leads to improved productivity and a more harmonious working environment.
The study's findings suggest that tea estates can further optimize their workforce by refining
their benefits programs to align with employee needs, ultimately fostering a more successful
and sustainable operation.
1.1 INTRODUCTION OF THE STUDY
Tea plantation sector which requires labour throughout the year, the nature
of work needs and the involvement of both the male and female labour force. Plucking of tea
leaves is an important activity and is a specialised job done by the female workforce in India.
The tea plantation workers come in the category of 'wage labourers' and they are distinctly
different from peasants and other industrial wage labourers in these countries. The workers
involved in tea plantations is basically migrant labour. Satisfaction level of the workers
represents a combination of positive or negative feelings that workers have towards their work.
The study aimed to ascertain the effectiveness of employee benefits offered by the karimtharuvi
tea estate to their workers. Furthermore, the findings show that the majority of the respondents
were illiterate, and were employed in the process of plucking the tea leaves, as this activity
generates a major chunk of the revenue for the tea estates. Employee benefits and benefits in
kind include various types of non-wage compensation provided to employees in addition to
their normal wages or salaries. Instances where an employee exchanges wages for some other
form of benefit is generally referred to as a "salary packaging" or "salary exchange"
arrangement. Examples of these benefits include: housing employer-provided or employer-
paid furnished or not, with or without free utilities; group insurance health, dental, life etc.
Disability income protection, retirement, leave, vacation (paid and unpaid), security.

Maintaining healthy employee relations in an organization is a pre-requisite for organizational

success. One way of maintaining good and healthy employee relations in an organization is by
attaching lucrative benefits to every job and task carried out by every employee in that
organization. Employee benefits which are the various non-wage compensations provided to
employees in addition to their normal wages or salaries cannot be over looked by the
management of an organization, since the human resource of an organization is the most valued
resource. This current era is highly competitive and organizations regardless of size, technology
and market focus are facing employee retention challenges. To overcome these restraints a
strong and positive relationship and bonding should be created and maintained between
employees and their organizations. To enhance this strong and positive relationship, employees
should be motivated to put in their best by providing employees with certain lucrative employee
benefits like performance bonuses, Christmas bonuses, study allowances, leave allowances etc.
Human resource or employees of any organization are the most central part so they need to be
influenced and persuaded towards tasks fulfilment.

1
Employee benefits play an increasingly important role in the lives of employees and their
families and have a significant financial and administrative impact on a business organization.
Most companies operate in an environment in which an educated work force has come to expect
a comprehensive benefits program. Indeed, the absence of a program or an inadequate program
can seriously hinder a company’s ability to attract and retain good personnel. Consequently,
organizations increasingly offer a wide range of traditional and nontraditional benefits; a 2011
Society for Human Resource (SHRM) survey identified 284 such offerings.

A major challenge for businesses is combining the right mix of benefits to attract and retain top
performers while also balancing the increasing costs of those benefits. The same SHRM survey
reported that businesses spent an average of 19 percent of an employee’s annual salary on
mandatory benefits (such as unemployment, workers’ compensation, and Social Security), 19
percent on voluntary benefits (such as medical plans, dental plans, prescription coverage,
flexible spending accounts, vision plans, and survivor benefits) and 11 percent on pay for time
not worked benefits (regular rate of pay for a nonworking period of time, such as vacations,
holidays, personal, bereavement, and sick leave).

Employees and potential employees tend to view benefits that are mandated by regulation
differently from benefits that are discretionary, that is, those that are not mandated but are
simply designed to make a compensation package more attractive. Benefits that are mandated
are thought of as creating employee rights or entitlements, while discretionary benefits are
intended to inspire employee loyalty and increase job satisfaction. Based on this, Klonoski
proposed definitions of both discretionary and non-discretionary benefits as a manager would
view them: "Discretionary employee benefits are those organizational programs and practices
that are not mandated by regulation or market forces, and that improve employee performance
by increasing job satisfaction or organizational loyalty. Non-discretionary employee benefits
are those organizational programs and practices that are mandated by regulation or market
forces, and that create an employee right, entitlement, or expectation." Additionally, benefits
are not evenly spread among the workforce; some workers are more likely than others to have
access to benefits. Full-time workers, for example, have greater access to benefits than do
parttime workers, and workers in large establishments usually have greater access to benefits
than do those in small establishments. Workers who belong to a labour union also are more
likely to be offered benefits than those who are in jobs in which workers are not unionized.

2
MEANING & DEFINITION OF EMPLOYEE BENEFITS

Employee benefits, also known as perks or fringe benefits, are provided to employees over and
above salaries and wages. These employee benefit packages may include overtime, medical
insurance, vacation, profit sharing and retirement benefits, to name just a few. The purpose of
employee benefits is to increase the economic security of staff members, and in doing so,
improve worker retention across the organization. As such, it is one component of reward
management.

HISTORY OF EMPLOYEE BENEFITS

Offering benefits to employees in the United States is a centuries-old practice, predating even
the founding of the country. As early as the Roman Empire century, soldiers received pensions,
and the fall of the Roman Empire may be, at least in part, related to the non-payment of these
pensions (Clark, Craig & Wilson, 2003, p. 1). The earliest employee benefits programs in North
America were brought to the continent by the colonizing Europeans. For more than a century
before the beginning of the Revolutionary War, British colonies in North America provided
pensions for disabled soldiers and sailors (U.S. National Archives and Records Service, 1974).
During and after the Revolutionary War (1775-1783), two more categories of pensions were
granted to soldiers who had served in the American military. They were awarded to those who
had served for a minimum term of service, and to the widows of those who had been killed in
service (U.S. National Archives and Records Service, 1974). In 1798, Congress established one
of the nation’s first healthcare benefits by creating a network of hospitals for the care of
merchant seamen (National Institute of Health, 1798). These programs were greatly expanded
in 1862 when Congress established the Union army pension plan (Pension Act of 1862). By
1900, approximately 21% of all white males in the United States who were aged 55 and over
were receiving pension payments from the federal government based on their having served in
the Union Army during the Civil War (Costa, 1998, p. 197).

Private sector employee benefits first began to take shape in Europe in the latter part of the
19th century. Otto von Bismarck, the first Chancellor of a newly united Germany, was pressed
to develop social protections to placate the Socialists, who were beginning to gain political
strength there. In 1883, he oversaw the establishment of “illness” insurance for workers. Under
the program he proposed, the cost of medical care and wages for up to 13 weeks of absence
from work would be split between employers and employees (Leichter, 1979, p. 121). He went

3
on to launch programs for accident insurance (Holborn, 1969. pp. 291–293) and for pensions
for those aged 70 and over (Henock, 2007, p. 157).

In the United States, paid time off, which had been a province of the wealthy and leisure class
during colonial times, gained popularity through the 19th century and by 1850 people
employed in “white collar” professions customarily received one week’s paid vacation as a
standard benefit (Aron, 1999, p. 47). Other benefits followed. In 1910, Montgomery Ward and
Company became the first U.S. company to offer health insurance to all of its general
employees as an employee benefit (Scofea, 1994, p. 4), but, in spite of its appeal, the benefit
did not spread quickly. It would not become a standard part of an employment contract until
political and economic events through the Great Depression and American participation in the
Second World War would change the landscape of compensation and benefits.

Between 1933 and 1938, President Franklin D. Roosevelt proposed a series of domestic
programs (Roosevelt Institute, n.d.) paralleling those developed in Germany a half-century
earlier under the umbrella title of the “New Deal”. In 1935, he signed the Social Security Act
into law as part of this program, intending to encourage older workers to retire which would
open jobs for younger (and less expensive) workers (Social Security Act, 1935). In 1930, 42%
of males aged 65 and over had withdrawn from the workplace; by 1940, that number had
increased to 50% (Costa, 1998, p. 50).

While the Great Depression saw an abundant supply of labour and few jobs, this balance
reversed during the Second World War. With much of the young male population taken by the
armed forces and with factories needing to supply the war effort, wages began to climb as firms
competed for the then scarce labour resources. Government intervention served to complicate
this bidding process. Fearful of inflation and in reaction to the rising price of labour, Congress
passed legislation to freeze wage and salary levels (The Stabilization Act of 1942). Exempted
from these wage and price controls, however, were work benefits, and organizations began
using them as an enticement for new recruits (Buch Mueller and Monheit, 2009, p. 3).

Employee benefits in the United States realized their first gains in popularity as part of the New
Deal program but they did not truly rise to widespread use until political forces positioned them
as a solution to a labour shortage. Selected employee benefits also gained in popularity because
of the favourable tax treatments they were receiving. They had become deductible expenses
for employers but not considered part of an employee’s gross income which was an added
incentive for employees to seek them and for companies to offer them. Through the Second

4
World War, benefits offerings grew very quickly. For example, in 1940, health insurance plans
covered approximately 21 million workers in the United States; by 1950, that number had
grown to 142 million (Blumenthal, 2006, p. 83). Employee benefits in America had suddenly
become an expected and entrenched part of an employment contract.

Following the War, the National Labor Relations Board (NLRB) successfully sought to have
employee benefits included in the definition of compensation in order to gain administrative
jurisdiction over them in disputes between labour and management (National Labor Relations
Act, as amended, 1951). Depending on the context in which they were being considered,
several different definitions of employee benefits began to emerge.

CONCEPT OF EMPLOYEE BENEFITS

Employee welfare may be viewed as a total concept, as a social concept and a relative concept.
The total concept is a desirable state of existence involving the physical, mental, moral and
emotional well-being. The social concept of welfare implies, of man, his family and his
community.

The relative concept of welfare implies that welfare is relative in time and place. Employee
welfare implies the setting up of minimum desirable standards and the provision of facilities
like health, food, clothing housing. medical allowance, education, insurance, job security, such
as to safeguard his health and protect him against occupational hazards. The worker should also
be equipped with necessary training and a certain level of general education.

IMPORTANCE OF THE EMPLOYEE BENEFITS

Employee benefits and relations is a complex lend of corporate culture, human resources
practices, and individual perceptions. Virtually everything the human resource department does
affect employee relations, directly or in directly. But many human resource activities are largely
un- noticed by employees, including for example, recruitment, selection, and benefits
administration. Other important human resource’s function affects employees only
periodically, as in the case of performance appraisal system and salary sessions. This
necessitates some ongoing activities to foster good employer-employee relation.

According to Williams (2007), the following are the benefits of good employee benefit
practices to an organization:

5
1.Improves productivity

Good employee benefit practices improve productivity. Employee productivity is significantly

affected by two factors: ability and attitude. Ability is simply whether or not the employee is
able to perform the job. Ability is influenced by such things as training, education, innate
aptitude, tools and work environments. Attitude on the hand refers to an individual’s
willingness to perform the job. Attitude is influenced by a myriad of factors, such as level of
motivation, job satisfaction, and commitment at work. Good employees’ relations practices
help improve both ability and attitude of the employee. Through continuous monitoring of
employee skill, attitude, and quality of work environment, the organization is able to initiate
timely collective actions. The result is an improvement in employee productivity.

2. Implementation of organizational goals

Good employee benefit plans ensure implementation of organizational strategies. Human

resource management plays an important role in achieving organizational goals. Goals and
strategies however well formulated will not be attained unless they are well executed. This
means that employee should be committed to the achievement of these goals. Unless employees
understand their roles and are rewarded for exhibiting desired behaviours, it is likely that the
organization will be able to generate grass root support for its plans. Good employee relations
practices ensure that these goals and strategies are properly communicated to the employees
and their commitment.

3. Reduction of employment cost

Good employee benefit practices reduce costs. Good employee-relations practices signify
concern and interest in the employees. When this becomes part of the overall organizational
culture, significant cost saving reduces absenteeism and turnover can emerge. Good employee
relations practices also give the firm a recruiting advantage as most job applications would like
to work for an organization that treats them fairly and offers them a challenging job with
potential job with career growth.

4.Achievement of human resource goals

Good employee benefit practices help the personal goals of the human resource function. An
important goal of human resource department today is to help employees achieve their personal

6
goals. A keen interest in the employee’s work related and career goals not only bring benefits
to the organization, but also help it to meet its social objectives.

FEATURES OF EMPLOYEE BENEFITS

• Employee benefits are those payments which are paid to him/her in addition to the
wages and salary he/she receives.

• These benefits are not given to the worker for any specific performance of the jobs but
they offered boosting his interests in work and make the job more productive for
him/her.
• Employee benefits represent labour cost. Whatever benefits are offered to the
employees in kind or in money terms account for cost.

• These benefits are offered to employees irrespective of their merit. Merit or non-merit
is not the criterion for these benefits.

• Benefit given by the employer is meant for all the employees and not a specific group
of employees.

• This is a positive cost incurred by an employer to finance employee benefit.

PRINCIPLES OF EMPLOYEE BENEFITS

• Benefits and services must be provided with the genuine intention of promotion of
employee welfare and these benefits should not be considered as a matter of charity.

• Benefits must be adored by the employees and should satisfy their need.
• The basis of benefits must be broad so that large number of employees should be
covered by them.

• Cost effectiveness should be taken into account while floating scheme of benefit.
• Employees must be aware of the use of these benefits.
• Effective planning for providing benefits should be affected.
• Before deciding upon any benefit, the union should be taken into confidence and its
suggestion thereof should be taken into consideration. This facilitates smooth
functioning of the scheme.

7
 A quotation from Peter Drucker throws light on principles of benefits. He said, “Larger part
of industrial growth is obtained not from more capital investment but from improvements in
men. We get from men pretty much what we invest in them.”
GUIDELINES FOR EFFECTIVE EMPLOYEE BENEFIT PROGRAMME

Following are some of the useful tips to make benefit programme more effective.

• Benefit programme should be treated as a worthy tool of Human Resource

Management.

• Benefit programme should accommodate future. It should be taken up as policy of the

organisation.

• Benefit programme should now be competitive as the labour is globally mobile.

• Beneficiary of the programme should be individual employee rather than group.

PROBLEM IN ADOPTION AND ADMINISTRATION OF EMPLOYEE BENEFITS

Several problems crop up in adoption and administration of benefit plans. Some of them can
be listed as under.

1. Feeling of Rightful Claim:

The organisations adopt several benefit programmes for the welfare of their employees on
humanisation grounds. But employees considered them as their right. If some programme is
withdrawn the employees start agitating for its continuity. The organisations face severe
problems in dealing with such attitude of the employees.

2. Pressure from Trade Unions:

Most of the organisation succumbs to the pressure from unions for implementation of certain
programmes. In such cases programmes are designed with fixing objectives of the programmes
or setting goals. Such programmes become burdensome and are not cost effective.

3. Apathy of Employees:

Benefit programmes meant for all employees but those cannot afford the benefits feel apathetic
about them. e.g.: the old women and who can’t conceive feel that maternity benefit is useless
and irrelevant.

8
4. Over Emphasis on Benefit Programme:

Some organisation overemphasizes the implementation and administration of benefit

programmes. In this exercise managers neglect other HR functions. This sometimes leads to
development of feeling of insecurity among employees and their productivity decrease.
5. No Cost Benefit Analysis:

Organisations have to incur huge amount on benefits but they ignore the advantages accrue to
them. This is because before implementation of these schemes cost benefit analysis is not made.
Each benefit programme should motivate employees for more work and increased productivity.

For avoiding lapses on the part of management of benefit programmes there should be
mechanism of evaluation and control which is possible if benefit objectives are set,
environmental factors and competitiveness of the programmes are properly assessed. These
benefits provide monetary gains to the employees who help in retaining the employees and
prevent labour unrest.

OBJECTIVES OF EMPLOYEE BENEFITS

There are some basic objectives that organisation employee benefits schemes aim at:

1. To increase the commitment of employee to the organisation.

2. To provide for the actual or perceived personal needs of employees.

3. To demonstrate that the company care for the needs of its employees.

4. To ensure that an attractive and competitive total remuneration package is provided which
both attracts and retains high quality staff.

Armstrong and Murlis (2004) opine that organisations provide benefits in some form to
employees. This practice varies from one organisation to another. Some of the reasons for these
variations are.

1. Employee Status

Most organisations give more benefits to employee base on his position in the hierarchy.

9
 2. Local-National Sector practice

There are some mark differences in the benefit programme between private sector and
public sector, between capital intensive organisation and the labour-intensive organisation.
3. Private and Public Sector Status

In terms of non-financial benefits, private sector enjoys more than the public sector.

TYPES OF EMPLOYEE BENEFITS

Employers can provide a wide range of employee benefits depending on the size of the
organization, the industry, and the budget. Some of the most common types of employee
benefits include the following:

1. Healthcare Benefits

• Health Insurance
Employers provide health insurance plans to help cover medical expenses for employees and
their families. These plans typically cover doctor visits, hospital stays, prescription drugs, and
preventive care.
2. Retirement Benefits

• 401(k) or Provident Fund

Employees can contribute a portion of their salary to a retirement savings plan, often with a
company match. These funds accumulate over time and provide financial security in
retirement.
3. Paid Time Off:

• Vacation Days
Employees are granted paid time off for leisure and relaxation, allowing them to recharge.
• Sick Leave
Paid time off for when employees are ill or require medical attention.
• Holidays:
Paid days off on recognized public holidays.

• Personal Days
Additional days off for personal reasons, such as family events or appointments.

• Bereavement Leave
Paid leave to cope with the loss of a family member.

10
4. Financial Benefits:

• Life Insurance
A benefit that provides a lump sum to beneficiaries in the event of the employee's death.

• Disability Insurance
Provides income replacement if an employee is unable to work due to disability.

• Flexible Spending Accounts (FSAs)

Allows employees to set aside pre-tax funds for medical or dependent care expenses.
• Health Savings Accounts (HSAs):
Tax-advantaged accounts for medical expenses, often paired with high-deductible health
plans.

• Employee Assistance Programs (EAPs):

Provides employees with resources for counselling and support during personal or work-
related difficulties.
5. Work-Life Balance Benefits

• Flexible Work Arrangements

Options like flex time, compressed workweeks, or remote work to promote work-life
balance.

• On-Site Childcare
Some employers offer on-site childcare facilities or assistance to ease the burden of working
parents.

• Family and Medical Leave

Legal provisions that allow employees to take unpaid leave for family or medical reasons.
6. Education and Training Benefits

• Tuition Reimbursement
Employers pay for part or all of an employee's education expenses, typically related to job
skills or professional development.

• Professional Development Programs

In-house training, workshops, or seminars for employees to enhance their skills and
knowledge.
7. Employee Recognition and Rewards
• Bonuses:
One-time monetary awards based on performance or achievements.

11
 • Employee of the Month/Year Awards:
Recognition for outstanding contributions.

• Employee Referral Programs:

Rewards employees for referring qualified candidates.

• Incentive Programs:
Offer additional compensation for meeting specific goals or targets.
8. Food and Wellness Benefits

• On-Site Cafeteria or Food Services:

Provides employees with convenient access to meals during work hours.

• Gym Memberships and Fitness Programs:

Encourages physical health and wellness among employees.

• Smoking Cessation Programs:

Supports employees in quitting smoking.

9. Transportation Benefits •
Commuter Benefits
Offer subsidies or tax advantages for public transportation or parking expenses.

• Carpooling Programs
Encourage employees to share rides to work, reducing commuting costs.
10. Legal and Financial Counselling

• Legal Services
Provide employees with access to legal advice.

• Financial Planning and Advice

Offer financial guidance to help employees manage their money effectively.

ADVANTAGES OF EMPLOYEE BENEFIS

• Good benefit packages help to attract and retain good employees.

• There may be tax deductions available.
• A good benefits package can save you money on salaries.
• Good benefits can reduce employee absenteeism.
• A comprehensive benefits package can reduce turnover.
• They create word-of-mouth recruiting opportunities.

12
DISADVANTAGES OF EMPLOYEE BENEFITS

• They cost money.

• There may be few choices available to certain employers.
• The costs of benefits are not static.
• There can be issues with legal compliance.
• Mistakes in employee benefits can lead to litigation.

OVERVIEW OF EMPLOYEE BENEFITS LAWS IN INDIA

India is the country with the second largest labour force in the world. The evolution of labour
and employment laws broadly known as “Industrial law” has changed the employer-employee
equation. Employees have become aware of their rights and hence, an awakening has brought
a whirlwind of changes in the industrial laws. The present article sheds light on some of the
key employee benefits under the labour laws.

⎯ EMPLOYEES’ STATE INSURANCE ACT, 1948

⎯ EMPLOYEES’ PROVIDENT FUND & MISCELLANEOUS PROVISIONS ACT,

1952 (EPF ACT)

⎯ MATERNITY BENEFIT ACT, 1961

⎯ PAYMENT OF GRATUITY ACT, 1972

⎯ EMPLOYEES’ COMPENSATION ACT, 1923

⎯ OTHER POINTS TO BE CONSIDERED

1. Employees’ State Insurance Act, 1948

The Employees’ State Insurance Corporation (ESIC) is a statutory body under the ownership
of Ministry of Labor and Employment, Government of India.

The Employees’ State Insurance Act, 1948 (ESI Act) is enacted with an objective to provide
social security benefits to employees. Under the ESI Act, the government has introduced a
compulsory insurance scheme known as “Employees’ State Insurance Scheme” which confers
sickness, maternity benefit, disablement (temporary and permanent) benefit, medical benefits,
dependent benefit, confinement expenses, funeral expenses, and unemployment allowance
upon the employees during their course of employment.

13
All the employees having a monthly wage up to INR 21,000/- per month are mandatorily
covered under the ESI Act and the ESI Scheme. However, in the case of persons with a
disability, the maximum wage is capped at INR 25,000 per month.

The applicability of ESI Act is extended to all factories. Further the ESI Act is extended to
establishments employing 10 or more persons, however, in certain states like Maharashtra and
union territories like Chandigarh the coverage of applicability of establishments under ESI Act
is 20 or more employees. Currently the employees’ contribution rate (w.e.f. 1.07.2019) is at the
rate of 0.75 per cent of the monthly salary and that of the employer is 3.25 per cent of the
monthly salary of such employee.

2. Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 (EPF Act)

The EPF Act is mandatorily applicable to all establishments having 20 or more employees.
The EPF Act continues to apply even if the threshold falls below 20 employees. The term
“employee” for the purpose of applicability under the EPF Act is not restricted to those
employees who are on the payroll of the establishment. Section 2(f) of the EPF Act gives a
wide definition of “employee” to provide any person who is employed for wages in any kind
of work, manual or otherwise, in or in connection with the work of an establishment, and who
gets his wages directly or indirectly from the employer, and includes any person employed by
or through a contractor in or in connection with the work of the establishment.

Further, any establishment employing less than 20 persons can also be voluntarily covered
under section 1(4) of the EPF Act.

The Employees’ Provident Fund Organisation is the statutory body under the Government of
India’s Ministry of Labour and Employment.

Under the EPF Act, the EPFO has constituted and maintains a fund known as the Employees’
Provident Fund (EPF). Both employer and employees have to make monthly contributions
towards the EPF. The rate of monthly contribution payable by both employer and employee
currently is 12 per cent each on employee’s basic salary and dearness allowance. Further under
the EPF Act currently there is a maximum wage ceiling of INR 15,000/- per month except for
those employees who qualify as “International Workers” under new para 83 of the Employees
Provident Fund Scheme, 1952.

14
Further, the rate of contribution payable by the employer is 10 per cent on the monthly wages
and an equivalent contribution of 10 per cent is payable by the employee, in case of certain
establishments including establishments having less than 20 employees.

There are three schemes under the EPF Act:

i. Employees’ Provident Fund Scheme, 1952: Employees’ Provident Fund Scheme is set
up under the EPF Act for the purpose of providing a post-retirement benefit for the employees
or a class of employees or their legal heirs in case of death, employed under the establishment.
ii. Employees’ Pension Scheme, 1995: Employees’ Pension Scheme (EPS)is framed under
the EPF Act for the purpose of providing the superannuation pension, retiring pension or
permanent total disablement pension to the employees and also to provide widow or widower’s
pension, children pension or pension payable to the beneficiaries of such employees. Under
this scheme, out of the employers’ contribution of 12 per cent, 8.33 per cent is allocated to
Employees’ Pension scheme and balance of 3.67 per cent is allocated to Employees’ Provident
Fund Scheme. The government amended rules related to EPF and Employees’ Pension Scheme
via notification in August 2014 , which became effective from 1 September, 2014, any new
joiners’/ individuals who joined Employees’ Provident Fund on or after 1st September 2014, if
at the time of joining their monthly wage (Basic+ Dearness Allowance) exceeded INR 15,000/-
per month, they would be ineligible to be a part of Employees’ Pension Scheme, and in such
case 8.33 per cent of employer’s share is not to be diverted to the pension scheme and total
employer’s share goes to Employees’ Provident Fund Scheme.

iii. Employees’ Deposit-linked Insurance Scheme, 1976: Employees’ Deposit-linked

Insurance Scheme (EDLI) under the EPF Act is for the purpose of providing insurance benefits
to the employees of an establishment or a class of establishments to whom this EPF Act applies
in case of death while in service. For this scheme no amount is taken from employee's salary.
However, the employer has to make a payment of 0.5 per cent of the total pay on which
contributions are payable of a maximum of INR 15,000 every month.

Further, it is pertinent to note that there is going to be a new labour law called Code of Wages,
2019 which is currently under implementation stage, and is expected to be notified soon. One
of the conditions which is likely to be enforced under the Code of Wages, 2019 is that
Employee’s “Basic” component should be least 50 per cent of total rest of components
enumerated in the exclusion clause of definition of wages or cost to company (CTC)which
includes all the allowances like House Rent Allowance (HRA), Conveyance Allowance, bonus,

15
and also employer’s contribution towards Employees’ Provident Fund Contribution. Although
the Wage Code, 2019 has not been officially brought into effect, usually it is seen amongst
industries implementing this change to keep the “Basic” salary component to at least 50 per
cent of the total CTC.

3. Maternity Benefit Act, 1961

The Maternity Benefit Act 1961(Maternity Benefit Act) is applicable to factory and all
establishments having 10 or employees. There is no wage limit and every female employee
irrespective of wage limit is covered.

The Maternity Benefit Act provides for the duration of paid maternity leave available for
women employees up to 26 weeks. Under the Maternity Benefit, this benefit could be availed
by women for a period extending up to a maximum of 8 (eight) weeks before the expected
delivery date and the remaining time can be availed after childbirth. For women who are having
2 (two) or more surviving children, the duration of paid maternity leave shall be 12 weeks (i.e.,
6 weeks before and 6 weeks after expected date of delivery).

Further, with effect from 01/03/2012, a woman to maternity benefit under the Act shall also be
entitled to receive from her employer a medical bonus of Rs. 3500/- if no pre-natal confinement
and postnatal care is provided for by the employer free of charge.

Further, there is compulsory requirement for all establishments employing at least 50

employees to have a crèche (day-care) facility.

4. Payment of Gratuity Act, 1972

The Payment of Gratuity Act, 1972(Gratuity Act) is applicable to factories and establishments
employing 10(ten) or more persons.

Under the Gratuity Act, an employee irrespective of his salary or status, becomes entitled to
monetary benefit usually given at the time of employee separation from organization or
retirement. This benefit is mandatory to be provided, if the such an employee has completed
five years of continuous services. However, in the event if an employee's services are
terminated due to his death or has become disabled due to an accident or a disease, an employer
is mandated by law to pay gratuity to him or his nominee/legal heir, as the case maybe,
irrespective of the number of years of continuous service.

16
The quantum of gratuity is calculated at the rate of 15 days a wage based on rate of wages last
drawn by the employee for every completed year of service or a part thereof exceeding 6(six)
months.

5. Employees’ Compensation Act, 1923

The Employees’ Compensation Act, 1923 (The Employees’ Compensation Act) covers certain
employees irrespective of their status or salaries either directly or through contractor.

The main objective of the Employees’ Compensation Act is that it casts liability on the
employer to pay compensation to an employee on death or personal injury resulting into total
or partial disablement or occupational disease caused to an employee arising out of and during
the course of employment.

The employees who are eligible to be covered include the persons who are listed in Schedule
II of the Employees’ Compensation Act and persons who are employed in occupations listed
in Schedule III to the Employees’ Compensation Act. However, it is pertinent to note that the
employees who are already covered under the ESI Act as provided above, they are excluded
from the ambit of the Employees’ Compensation Act

The Employees’ Compensation Act provides for different scales of compensation for different
kinds of injuries.

Conditions for Receiving Compensation: An employee to whom personal injury is caused by

accident is entitled to receive compensation under this law if the accident arose out of and in
the course of his employment. That means the accident must occur while the employee is in
employment and it must also be connected with his employment. Circumstances in which the
employer is not liable to pay compensation to an employee are as follows:

i. If the injury does not result in total or partial disablement of the employee for a period
exceeding 3 (three days)

ii. If the injury does not result in death of the employee and is caused by an accident which
is attributable to:

If an employee has been at the time thereof under the influence of drink or drugs

The disobedience of the employee to an order expressly given, or to a rule expressly framed,
for the purpose of securing the safety of workman, or

17
The wilful removal or disregard by the employee of any safety guard or other device which he
knew to have been provided for the purpose of securing the safety of employee.

If any accident occurs on the premises of any employer which results in death of an employee
or serious bodily injury to an employee, the employer must, within 7 (seven) days of the death
or serious bodily injury, send in the prescribed form a report to the Commissioner for employee
compensation giving the circumstances attending the death or serious bodily injury.

6. Other points to be considered

In addition to information provided on applicability of various applicable labour laws, the

Indian labour laws require company-employers to communicate workplace information to
employees in writing. This is done through an Employee Handbook drafted in accordance with
applicable providing guidance about company rules and operating procedures. It is also
suggested for establishments to have a detailed Human Resource (HR) Policy/Employee
Handbook prepared in accordance with the applicable labour laws and social regulations and
will include guidelines relating to: working hours, rest periods, leaves, social security benefits,
termination, gratuity etc.

INDIA EMPLOYEE BENEFITS SEGMENTATION BY STATE AND COMPULSORY

BENEFITS

The key state and compulsory benefits offered by employers in India are retirement benefits,
death in service, long-term disability benefits, short-term sickness benefits, medical benefits,
workers’ compensation insurance, maternity and paternity benefits, and other benefits.

1.Retirement Benefits

Retirement benefits are typically paid to employees upon their death, retirement, resignation,
or retrenchment by their current or former employer. Retirement benefits in India are provided
under the Employees’ Provident Fund (EPF) Scheme, the Gratuity Scheme, the Employee
Pension Scheme (EPS), the National Pension Scheme (NPS), and Superannuation.

2. Workers’ Compensation Insurance

Workers and their dependents are covered under the Workmen’s Compensation Act 1923,
which was renamed the Employees’ Compensation Act 1923 by the Workmen’s Compensation
(Amendment) Act 2009. Employees receive compensation from employers in case of bodily

18
injury or death due to accidents or occupational diseases during employment, depending on the
nature of the injury, average monthly wages, and the worker’s age.

3. Maternity and Paternity Benefits

The Maternity Benefit (MB) Act 1961 regulates the benefit, which covers up to two deliveries
(including caesarean). In companies where ESI is available, it will come into force before the
benefits available from the MB act. The Central Industrial Relations Machinery (CIRM) in the
Ministry of Labor is responsible for implementing this act, as per which no organization should
recruit a woman and no woman should work during the six weeks immediately following the
day of her delivery or miscarriage.

INDIA EMPLOYEE BENEFITS SEGMENTATION BY PRIVATE BENEFITS

The key private benefits offered by the employers of India are retirement benefits, death
benefits, medical benefits, disability benefits, accidental death and dismemberment benefits,
and other benefits. 1. Retirement Benefits
In India, the statutory pension system (EPF and EPS) is predominant. The Indian Government
has been actively developing the retirement benefits sector by changing the design, operation,
and governance of retirement schemes. It opened NPS to all and introduced new retirement
schemes such as Atal Pension Yojana (APY) for both organized and unorganized sectors to
cover employed, self-employed, and casual workers. Also, the private retirement system in the
country is rapidly developing with many employers offering voluntary supplementary
retirement benefits to their employees.
2. Medical Benefits
In India, all employers provide medical benefits to their employees by subscribing to group
medical insurance plans, which also covers spouses and dependent children. From April 15,
2020, the Government of India made private health insurance mandatory for all employers
resuming operations post-COVID-19 lockdowns.
3. Disability Benefits
The disability has already been covered under Workers’ Compensation and other government
policies. Therefore, private disability benefit is not prevalent in India. Companies offer short-
term and long-term disability benefits as part of Accidental Death & Dismemberment (AD&D)
insurance. Companies provide this benefit through group disability insurance. Companies
usually do this to attract and retain new and existing employees.

19
CONSEQUENCE OF REDUCTION IN EMPLOYEE BENEFITS

A reduction in employee benefits can have various consequences, both for the employees and
the employer. Here are some potential effects:

• Employee Morale and Job Satisfaction

Employees may become dissatisfied and demotivated if their benefits are reduced. This can
lead to decreased morale, lower productivity, and potentially higher turnover rates.

• Retention and Recruitment

Reduced benefits can make it more challenging to attract and retain top talent. Prospective
employees may be less inclined to join the company, and current employees might start looking
for new job opportunities.

• Employee Health and Well-being

If healthcare benefits are reduced, it could impact the health and well-being of employees,
potentially leading to increased stress and health issues. This could result in more sick days
and decreased productivity.

• Legal and Regulatory Issues

Reducing benefits may have legal implications, especially if it violates employment contracts,
labour laws, or regulations. This could lead to legal disputes and potential financial penalties.

• Union or Employee Relations

In unionized environments, benefit reductions could lead to labour disputes, strikes, or

collective bargaining negotiations, which can be disruptive and costly for the company.

• Communication Challenges

Announcing benefit reductions can be a delicate matter. Poorly handled communications can
lead to resentment, confusion, and decreased trust between employees and the employer.

20
 IMPACT OF EMPLOYEE BENEFITS ON WORKFORCE MOTIVATION AND
PRODUCTIVITY

Employee benefits can have a significant impact on workforce motivation and productivity.
Here are some key points

1. Motivation

• Attraction and Retention

Competitive benefits, such as health insurance, retirement plans, and paid time off, can attract
top talent and retain existing employees. When employees feel valued and cared for, they are
more motivated to stay with the company.

• Job Satisfaction

Offering benefits like flexible work arrangements, wellness programs, and career development
opportunities can enhance job satisfaction. Satisfied employees are generally more motivated.

• Financial Security

Benefits like retirement plans and financial wellness programs provide a sense of financial
security. This reduces stress and anxiety, leading to higher motivation and focus at work.

• Recognition and Appreciation

Benefits are a way to show employees that their contributions are recognized and appreciated,
which boosts morale and motivation.

2. Productivity

• Health and Well-being

Health and wellness benefits, such as gym memberships or mental health support, can lead to
healthier and happier employees. Healthy employees are more productive and take fewer sick
days.

21
• Work-Life Balance

Benefits that support work-life balance, such as flexible schedules or childcare assistance,
enable employees to manage their personal lives better, reducing stress and increasing
productivity.

• Skill Development

Benefits like training and development programs can enhance employees' skills and
knowledge, making them more effective in their roles.

• Reduced Turnover

When employees are satisfied with their benefits, they are less likely to leave the company.
This reduces the cost and disruption associated with turnover.

TRENDS IN EMPLOYEE BENEFITS

Employee benefits are constantly evolving to meet the changing needs and expectations of the
workforce.

• Flexible Work Arrangements

The COVID-19 pandemic accelerated the adoption of remote work and flexible work
schedules. Many companies began offering flexible arrangements, including remote work
options, to attract and retain talent.

• Mental Health and Well-being

There is a growing emphasis on mental health benefits, including employee assistance

programs, counselling services, and stress management resources. This trend addresses the
increased awareness of mental health issues in the workplace.

• Wellness Programs

Employers are investing in wellness programs that promote physical health, fitness, and
nutrition. These programs often include gym memberships, wellness challenges, and incentives
for healthy living.

22
• Financial Wellness

Employers are providing financial wellness benefits to help employees manage their finances.
This may include financial planning services, access to low-interest loans, and assistance with
student loan repayment.

• Paid Family Leave

Many organizations are expanding paid family leave policies to support employees during
significant life events, such as the birth or adoption of a child, or caring for a sick family
member.

• Diversity, Equity, and Inclusion (DEI) Initiatives

Companies are incorporating DEI-focused benefits, such as diversity training, mentorship

programs, and inclusive healthcare policies, to promote a more inclusive and equitable work
environment.

• Remote Work Support

With the increase in remote work, employers are offering allowances for home office setups,
covering internet expenses, and providing cybersecurity resources to ensure remote employees
can work effectively.

• Sustainability Initiatives

Some companies are introducing eco-friendly benefits, like public transportation subsidies,
bike-sharing programs, and incentives for reducing carbon footprints, as part of their
commitment to sustainability.

• Employee Development

Professional development benefits, such as training and educational assistance, are becoming
more prominent as employees seek opportunities for skill enhancement and career growth.

• Customized Benefits Packages

Many organizations are offering a menu of benefits that employees can choose from, allowing
them to personalize their benefits package to better meet their individual needs and preferences.

23
• Technology and Apps

Employers are leveraging technology to provide benefits information and resources through
mobile apps and digital platforms, making it easier for employees to access and use their
benefits.

• Holistic Well-being

Companies are focusing on holistic well-being by integrating various aspects of physical,

mental, and financial wellness into comprehensive benefit programs.

EMPLOYEE BENEFITS AND ITS IMPACT ON BUSINESS PERFORMANCE

Employee benefits have a substantial impact on business performance in several ways:

Attracting and Retaining Talent: Competitive benefits packages make a company more
attractive to potential employees and help retain existing ones. This reduces recruitment and
training costs and maintains a skilled and experienced workforce.

Improved Job Satisfaction: Employee benefits, such as healthcare, retirement plans, and
flexible work arrangements, enhance job satisfaction. Satisfied employees tend to be more
productive, engaged, and less likely to leave the company.

Enhanced Productivity: When employees feel their well-being is a priority, they tend to be
more motivated and focused at work. This increased motivation and focus lead to higher
productivity.

Reduced Absenteeism: Benefits like paid time off and sick leave reduce absenteeism.
Employees can take the time they need without financial strain, ensuring a steady workflow
and business continuity.

Health and Wellness: Health and wellness benefits promote healthier lifestyles among
employees, which can reduce healthcare costs and decrease the number of sick days taken.

Stress Reduction: Benefits like mental health support and work-life balance programs can help
reduce stress among employees, leading to higher morale and better performance.

24
Cultivating Loyalty: Providing benefits creates a sense of loyalty among employees. This can
lead to a positive company culture and higher job satisfaction, both of which are linked to better
business performance.
Competitive Advantage: Offering robust benefits can be a competitive advantage in the job
market. It sets a company apart and can attract the best candidates, which ultimately leads to
better business results.

Legal Compliance: Some benefits may be legally required, and adhering to these regulations
can prevent legal issues and penalties that could affect business performance.

Cost Control: While providing benefits incurs costs, some benefits, like preventive
healthcare or wellness programs, can help control long-term healthcare expenses and reduce
employee turnover costs.

ACTUARIAL VALUATION OF EMPLOYEE BENEFITS

Employee benefits refer to all forms of perks or compensation paid by an employer to an

employee apart from the salary or wages for the services provided by the employee. Actuarial
valuation of employee benefits may include sick days, medical insurance, overtime, profit
sharing, retirement benefits etc. In simple words, actuarial valuation deals with the
computation of the present value of payments that would be made to employees in future as
part of an employee benefits scheme. The first step in actuarial valuation is to calculate the
benefit available to the employee. The AS 15 and Ind AS 19 provide the accounting treatment
and disclosure to be made with respect to employee benefits.

THE NEED OF ACTUARIAL VALUATION OF EMPLOYEE BENEFITS

An organization may need services of actuarial valuation of employee benefits for the following
probable reasons:

• To prepare year-end financial statements which depict accurate results and financial
position.

• To ensure that compliance with Indian GAAP is met.

• To ensure proper accounting of employee benefits in the books of accounts.

25
• To ensure that liabilities are recorded in the financial statements in respect of employee benefit
schemes in accordance with AS 15 or Ind AS 19, as may be applicable to an organization.
• To estimate the liability accurately and to make adequate disclosures as required by the
accounting standards.

• For employee benefits of an India based subsidiary of an international parent company, one
would need to report under the GAAP applicable to the parent company whether US GAAP,
IAS 19, etc.
• To assess whether the company holds the required level of assets to match the employee
benefits’ liability.

• To assess the amount of contribution needed by the organization to make up for gratuity funds
or trusts.

• To ascertain the cost to be paid with reference to the liability of employee benefits in a merger
or acquisition.

• To determine the amount of settlement of liabilities in case of winding up, liquidation or

discontinuance of operations.

• To precisely determine the level of provisions to be recorded in the year-end financial

statements.

REGULATORY FRAMEWORK GOVERNING ACTUARIAL VALUATION OF

EMPLOYEE BENEFITS

AS 15, Ind AS 19, US GAAP and other International Accounting Standards provide a regulatory
framework for actuarial valuation of employee benefits.
The main aim of AS 15 and Ind AS 19 is to ensure that:

• A liability is mentioned in the balance sheet that represents the actuarial value of the benefits
that have been accrued till the balance sheet and are expected to be paid in future.

• An expense is recognized in the statement of profit or loss, representing the cost of running
these benefits schemes over the reporting period.

26
• From the reporting company’s benefit, the liability is the excess of Defined Benefit Obligation
(DBO).

• In the absence of these accounting standards, the true financial position of the companies will
not be disclosed.

• Ind AS 19 requires additional disclosures to set out the significant risks to post-employment
plans.

VARIOUS EMPLOYEE BENEFITS TREATED UNDER AS15 AND AS 19

• Short Term Benefits

Short term benefits such as bonuses, salaries etc. do not require the actuarial valuation.

• Long Term Benefits

Long -term benefits are further categorized as post -
employment benefits: - such as gratuity and pension, and
Other Long- Term benefits: - such as jubilee awards, which are paid during the service of the
employee.
Leave benefits can be categorized as either post -employment or other long-term benefits,
depending on the scheme rules and assumptions whether a First in First Out (FIFO) or a
Last -In- First -Out (LIFO) method is used for actuarial valuation of employee benefits.

EMPLOYEE BENEFITS STRATEGY

Developing effective employee benefits strategies is crucial for attracting, retaining, and
motivating employees while aligning with the organization's goals and budget. Here are some
strategies to consider:
1. Assess Employee Needs:

• Conduct surveys or interviews to understand what benefits employees value most.

• Analyse demographic and lifestyle factors that can influence benefit preferences.
2. Customize Benefit Packages:

• Tailor benefits to meet the diverse needs and preferences of different employee groups. •
Offer a flexible benefits program that allows employees to choose from a menu of
options.

27
3. Competitive Benchmarking:

• Research industry and regional standards to ensure that benefits package is competitive.
• Monitor competitors are offering to stay on par or ahead.
4. Cost-Effective Solutions:

• Balance benefit offerings with the organization's financial capabilities.

• Explore cost-effective options like high-deductible health plans with health savings
accounts.
5. Communication and Education:

• Communicate benefits clearly and regularly to employees.

• Provide education on how to make the most of their benefits, especially for complex
offerings like retirement plans.
6. Wellness Programs:

• Promote physical and mental health through wellness initiatives.

• Offer gym memberships, nutrition counselling, stress management, and smoking
cessation programs.
7. Work-Life Balance:

• Support work-life balance by offering flexible work arrangements and telecommuting

options.

• Consider providing on-site childcare or subsidies for childcare services.

8. Legal Compliance:

• Stay updated on changing employment laws and regulations related to benefits.

• Ensure that all benefit offerings comply with legal requirements.
9. Performance-Linked Benefits:

• Consider linking certain benefits to performance, such as performance-based bonuses or

stock options.

• Reward high-performing employees with additional benefits.

10. Employee Feedback and Adaptation:

• Continuously seek employee feedback on the effectiveness of benefits.

• Adapt the benefits package based on changing needs and preferences.

28
11. Retention Focus:

• Use benefits strategically to retain key employees.

• Consider long-term incentives for those with critical skills or in leadership roles.
12. Transparency and Fairness:

• Ensure that benefits are distributed fairly and equitably among employees.
• Maintain transparency about eligibility criteria and processes.

13. Comprehensive Communication and Onboarding:

• Create an effective onboarding process that educates new employees about the benefits
package.

• Provide ongoing communication and reminders about available benefits.

14. Employee Assistance Programs (EAPs):

• Offer EAPs to support employees with personal or work-related challenges, including

mental health issues.
15. Legal and Financial Services:

• Consider providing legal and financial counselling services to assist employees in

managing their personal affairs.

16. Sustainability and Social Responsibility:

• Incorporate benefits and policies that promote sustainability and social responsibility,
which can appeal to environmentally conscious and socially aware employees.

DIFFERENCE BETWEEN EMPLOYEE BENEFIT IN PRIVATE AND PUBLIC

COMPANIES

Employee benefits in public and private companies can differ in some key ways:

Disclosure: Public companies are required to disclose more information about their
compensation and benefits packages in their public financial reports, including executive
compensation. Private companies have more flexibility and may not be as transparent.

29
Stock Options: Public companies often offer stock options or RSUs to employees as part of
their compensation packages, while private companies may provide equity options but without
the same liquidity or marketability.

Pension Plans: Historically, public companies were more likely to offer defined benefit pension
plans, while private companies increasingly offer defined contribution plans like 401(k)s.

Regulatory Requirements: Public companies face more extensive regulatory requirements,

such as reporting and compliance with the Securities and Exchange Commission (SEC). Private
companies have fewer regulatory obligations.
Transparency: Public companies may offer more transparent and detailed benefit programs due
to public scrutiny. Private companies, especially smaller ones, may have less standardized or
visible benefit packages.

Market Competition: Public companies may be more likely to offer competitive benefit
packages to attract and retain top talent due to the greater visibility and competition in the job
market.

Ownership Structure: The ownership structure in private companies can vary widely, affecting
the availability and nature of benefits. Family-owned, venture-backed, and private equity
owned companies might have different approaches to employee benefits.

Employee Stock Ownership: In some cases, private companies may offer employee stock
ownership plans (ESOPs) or other equity-sharing programs, but they might be structured
differently from those in public companies.

Flexibility: Private companies often have more flexibility to customize benefits to meet their
specific needs and the preferences of their workforce, while public companies may have more
standardized benefit offerings.

THE INTEGRATED SYSTEM APPROACH TO PLAN EMPLOYEE BENEFITS

The environment in which employee benefits operate is often erratic. For a number of strategic
reasons, it is imperative to use a systematic process when designing, planning, and
administrating workers’ benefits. One useful option is known as the integrated system
approach, which has been in use for some time now. It is an organized process of classifying
employee life events and extrapolating the employee’s needs from that classification. In this

30
system, employees are put into categories of exposure to life event losses and their protection
needs. The objectives of this approach are the structuring of benefits to ensure that employee
needs are met while mitigating loss exposures. This assists organizations in managing costs
and also assists with employee communication.

It has been shown that this process helps to integrate employee benefits into a total
compensation strategy, and from there, the integration of the compensation strategy into human
resource (or human capital) plans for the organization at large. When designing a total
compensation program, an employer will typically seek to integrate the program’s various
elements—based compensation, incentive or variable compensation, and so on—with equity
compensation and the various functional employee benefits into a cohesive strategy. Some
employers choose to set their total compensation and benefits levels equal to the competitive
market average. Others set them at varying percentiles above said average. Which benchmark
is chosen depends on the organization’s general strategy. For example, a company in need of a
highly skilled workforce might set its benchmark above average, so as to attract and retain
employees with the skills that they require, because they will be taken from a very competitive
candidate pool. In contrast, other organizations might choose a position below average for fixed
cash compensation and benefit levels, but target incentive compensation payouts above market.
This risk-reward strategy would attract an entirely different sort of employee, with differing
motivations, compared to the first example. Alternatively, companies may adopt an average or
below-average benchmark with the thinking that savings accrued will outweigh the negative
results of a higher turnover rates. The type of industry, and the characteristics of the employer,
will determine the total compensation structure.

Within a context such as the one outlined here, a large and mature organization may take a more
liberal stance on benefit programs and their relatively high fixed costs. However, a growing
organization—particularly in the high-tech sector—might focus more on equity compensation
and short-term variable pay in order to conserve resources. Companies that are cyclical in
nature may not want to increase their fixed costs with a liberal program, but instead will seek
to cut programs and introduce higher levels of cost sharing with their workers. It is a continuous
struggle to keep the right balance in allocating resources to meet employee needs on one hand
and fiscal realities on the other. Another approach entirely to benefits planning involves
employers’ inclinations to reward longer service, rather than focusing on needs. This seniority-
based system recognizes employee loyalty and commitment. Alternately, benefit eligibility
may be tied to an employee’s salary or classification level, which results in a hierarchal system.

31
Both of these differ greatly from the needs-based system, which simply recognizes that all
employees (and their dependents) have needs that should be addressed; this is used to derive
maximum productivity from the entire workforce. Most organizations use a combination of
these systems, called a dual-objective system. For example, healthcare benefits might be
dictated by employee needs, while group life insurance and defined pensions are set based on
income.

EMPLOYEE BENEFITS UNDER ADVERSE ECONOMIC CONDITIONS

It has been observed that during the recent economic recession, employees valued their benefits
more than ever. Behaviour shifts and modifies during tough economic times, and as a result,
certain decisions are modified. For instance, workers become much more hesitant to leave work
for extended periods of time, such as for a vacation or because of illness. If employees do leave,
such as for maternity or adoption leave, they will return sooner than expected.

In addition, employees are often more willing to pay more for premiums and accept higher
deductibles, in hopes of preserving the most desired of all benefits: medical coverage. It has
been found that if this benefit is tinkered with, employee dissatisfaction peaks, to the point
where they have gone on record to state that they would seek alternative employment if their
medical benefits were curtailed or, worse, eliminated entirely.

Furthermore, in such economic turmoil, employees are more willing to entertain reductions in
salary, or even forfeit bonus payments, so as to leave benefits at their current levels. Also, a
majority have agreed to forego raises in cash compensation to preserve benefits.

Because of these facts, employers would be wise to keep employee preferences in mind, as
well as satisfaction levels, whenever considering any readjustments or, particularly, cuts to their
employees’ benefit programs during an economic downturn. Employee opinion surveys have
consistently indicated that negative action by management, with regard to these programs, in
such a climate will also dictate how those same employees feel about their employers once the
company’s economic situation improves.

ROLE OF EMPLOYEE BENEFIT IN AN ORGANISATIION

• Benefits contribute to attracting, retaining, and motivating employees.

• Variety of possible benefits helps employers tailor their compensation to kinds of
employees they need.

32
 • Employees have come to expect that benefits will help them maintain economic security.

• Benefits impose significant costs.

• As part of the total compensation paid to employees, benefits serve functions similar to
pay. Different employees look for different types of benefits. Employers need to examine
their benefits package regularly to see whether they meet the needs of today. At the same
time, benefits packages are more complex than pay structures, so benefits are harder for
employees to understand and appreciate. Even if employers spend large sums on benefits,
if employees do not understand how to use them or why they are valuable, the cost of the
benefits will be largely wasted.

1.2 OBJECTIVES OF THE STUDY

• To identify the facilities provided to the workers in the tea plantation.

• To study about the employee benefits which attract and retain talent and enhance the
organizational commitment of the employees.

• To find out various factors relating to employee benefits measures in the tea plantation

1.3 HYPOTHESIS OF THE STUDY

Testing of hypothesis: 1

NULL HYPOTHESIS[H0]: There is no significant relationship between experience of the

respondents and employees are aware about the employee benefits offered by the company.

ALTERNATE HYPOTHESIS[H1]: There is significant relationship between experience of the

respondents and employees are aware about the employee benefits offered by the company.

Testing of hypothesis: 2

NULL HYPOTHESIS[H0]: There is no significant relationship between age and respondents’

opinion on the type of health insurance enrolled in company.

ALTERNATE HYPOTHESIS[H1]: There is significant relationship between age and

respondents’ opinion on the type of health insurance enrolled in company.

33
1.4 STATEMENT OF THE PROBLEM
The tea manufacturing industry is recently facing so many problems like lockout, strikes, etc.
All those are mainly due to the employee dissatisfaction; thus, we need to study the employee
satisfaction. Employee satisfaction has significant influence on the morale and productivity of
worker. The manufacturing process of the company is mainly affected by the efficiency of the
employees. The workers are provided with different facilities so as to motivate them. This study
undertaken in order to understand the differences facilities provided by the company.
Employees are the backbone of any organization. They are the most precious and important
asset among all the asset of any organization. So based on the above discussion, the study aims
to recognize the effectiveness of employee benefits offered by karimtharuvi tea estate to their
worker’s.

1.5 SCOPE OF THE STUDY

• The present study has been undertaken to study out the effectiveness of employee benefits
measures offered to the employees in karimtharuvi tea estate.
• The scope of the study examines the relationship between employee’s benefits and
employee’s performance are interlinked with each other.
• The scope for the study is to know the attitude of the employee towards this work.

• To identify the employee benefits factors that motivates the employees.

1.6 NEED OF THE STUDY

• The main purpose of this study is to analysis the effectiveness of employee benefits
offered to tea estate workers.

• To develop efficiency and productivity among employees.

• To find the employees satisfaction towards employee benefits.

• To examine whether the benefits offered are competitive enough to attract and retain the
specific talent pool.

• To build a stable labour force to reduce the turnover and absenteeism.

34
1.7 COMPANY PROFILE

Karimtharuvi Tea Estates Ltd is a Public incorporated on 13 April 1929. It is Amalgamated

company with its office registered at Kottayam, Kerala, India and has been running in the last
94 years 2 months. It is classified as non-govt company and is registered at Registrar of
Companies, Ernakulam. This company is registered at Registrar of Companies (ROC). Its
authorized share capital is Rs. 750,000 and its paid-up capital is Rs. 0. It is involved in Growing
of crops; market gardening; horticulture.

MISSION

• To consistently produce safe and highly quality products.

• Ensuring sustained growth with commitment towards social and environment value.

VISSION

• To collectively create a unique and sustainable business with the commitment and
involvement of the employees as partners.

Company Status Amalgamated

CIN U01132KL1929PLC000534

Registration Number 000534

Date of Incorporation 13 April 1929

Registration State Ernakulam

ROC RC-Ernakulam

Company Category Company limited by Shares

Company Sub-Category Non-govt company

Class of company Public

Listing Status Unlisted

35
1.8 SUMMARY

Chapter 1: - It gives an introduction to the research work. It gives the basic information about

the company and the research being undertaken. This chapter therefore consists of the

introduction of the study, objective of the study, hypothesis of the study, statement of the

problem, scope of the study, need of the study, company profile.

36
2.1 REVIEW OF LITERATURE

DEFINITION

An employee is defined as an individual who works part-time or full-time under a contract of

employment, whether oral or written, express or implied, and has recognized rights and duties.
The individual is also called worker (Simmons, 2005).

1.Gideon (2001) in his book titled ‘Motivating employees the right way’ states that
‘employment is a contract between two parties, one being the employer and the other being the
employee. An employee may also be defined as: "A person in the service of another under any
contract of hire, express or implied, oral or written, where the employer has the power or right
to control and direct the employee in the material details of how the work is to be performed."
An employee contributes labour and expertise to an endeavour of an employer and is usually
hired to perform specific duties which are packaged into a job. In most modern economies, the
term "employee" refers to a specific defined relationship between an individual and a
corporation, which differs from those of customer or client. Other types of employment are
arrangements such as indenturing which is now highly unusual in developed nations but still
happens elsewhere. An employer's level of power over its workers is dependent upon numerous
factors, the most influential being the nature of the contractual relationship between the two.
This relationship is affected by three significant factors: interests, control and motivation. It is
generally considered the employers' responsibility to manage and balance these factors in a
way that enables a harmonious and productive working relationship. Employer and managerial
control within an organization rest at many levels and has important implications for staff and
productivity alike, with control forming the fundamental link between desired outcomes and
actual processes. Employers must balance interests such as decreasing wage constraints with a
maximization of labour productivity in order to achieve a profitable and productive
employment relationship.

2. According to Simons (2005), employee benefits (also called fringe benefits, perquisites,
perks or perks) are various non-wage compensations provided to employees in addition to their
normal wages or salaries. In instances where an employee exchanges (cash) wages for some
other form of benefit is generally referred to as a 'salary packaging' or 'salary exchange'
arrangement. In most countries, most kinds of employee benefits are taxable to at least some

37
degree. Examples of these benefits include: housing (employer-provided or employer-paid),
group insurance (health, dental, life etc.), disability income protection, retirement benefits, day
care, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit
sharing, funding of education, and other specialized benefits. The purpose of employee benefits
is to increase the economic security of staff members, and in doing so, improve worker
retention across the organization. The term perks (also perks) are often used colloquially to
refer to those benefits of a more discretionary nature. Often, perks are given to employees who
are doing notably well and/or have seniority. Common perks are take-home vehicles, hotel
stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for
lunch, and—when multiple choices exist—first choice of such things as job assignments and
vacation scheduling. They may also be given first chance at job promotions when vacancies
exist.

3. According to Marshall (2002) employee relations is a multidisciplinary field that studies

the employment relationship. Employee relation is increasingly being called employment
relations because of the importance of non-industrial employment relationships. Many
outsiders also equate industrial relations to labour relations and believe that industrial relations
only studies unionized employment situations, but this is an oversimplification. The term
'employee relations' was conceived as a replacement for the term 'industrial relations' but it's
precise meaning in today’s workplaces needs clarification. In 2004/5, CIPD undertook research
into the changing nature of employee relations work in United Kingdom organisations, through
interviews with HR and Employee Relations managers to provide a snapshot of current
attitudes and practice. Industrial relations scholarship assumes that labour markets are not
perfectly competitive and thus, in contrast to mainstream economic theory, employers typically
have greater bargaining power than employees. Industrial relations scholarship also assumes
that there are at least some inherent conflicts of interest between employers and employees (for
example, higher wages versus higher profits) and thus, in contrast to scholarship in human
resource management and organizational behaviour, conflict is seen as a natural part of the
employment relationship. Industrial relations scholars therefore frequently study the diverse
institutional arrangements that characterize and shape the employment relationship—from
norms and power structures on the shop floor, to employee voice mechanisms in the workplace,
to collective bargaining arrangements at company, regional, or national level, to various levels
of public policy and labour law regimes, to "varieties of capitalism" (such as corporatism),
social democracy, and neo-liberalism).

38
4.According to Watson (2006), employee benefit plans involve the body of work concerned
with maintaining employer-employee relationships that contribute to satisfactory productivity,
motivation, and moral. Essentially, employee-relations are concerned with preventing and
resolving problems involving individuals which arise out of or affect work situations.
‘Industrial relations’ is generally understood to refer to the relationship between employers and
employees collectively. The term is no longer widely used by employers but summons up a set
of employment relationships that no longer widely exist, except in specific sectors and, even
there, in modified form. The decline can be measured on a number of different dimensions.
From a peak of some 12 million plus, union membership has fallen to around 7 million today.
Between 1980 and 2000, the coverage of collective agreements contracted from over
threequarters to under a third of the employed workforce. At the same time, the range of issues
over which bargaining took place decreased massively. The Workplace Employment Relations
Survey (WERS) 19981 showed that union officials spent most of their time not on negotiating
pay and conditions but in supporting grievances on behalf of individual members. Even where
collective bargaining continued, its impact on the exercise of management discretion was
greatly diminished. The shift in the coverage and content of collective bargaining has been
reflected in a dramatic reduction in industrial action since 1980. The number of working days
lost per 1,000 union members decreased from an annual average of 1,163 in the 1970s to 76 in
the 1990s. They remain low and are below the levels in many other developed countries.

5.According to Richard (2000), employee performance and productivity is a measure of

output from a production process, per unit of input. For example, labour productivity is
typically measured as a ratio of output per labour-hour, an input. Productivity may be conceived
of as a metric of the technical or engineering efficiency of production. As such, the emphasis
is on quantitative metrics of input, and sometimes output. Productivity is distinct from metrics
of allocative efficiency, which take into account both the monetary value (price) of what is
produced and the cost of inputs used, and also distinct from metrics of profitability, which
address the difference between the revenues obtained from output and the expense associated
with consumption of inputs. Production is a process of combining various material inputs and
immaterial inputs (plans, know-how) in order to make something for consumption (the output).
The methods of combining the inputs of production in the process of making output are called
technology. Technology can be depicted mathematically by the production function which
describes the relation between input and output. The production function can be used as a
measure of relative performance when comparing technologies. The production function is a

39
simple description of the mechanism of economic growth. Economic growth is defined as any
production increase of a business or nation (whatever you are measuring). It is usually
expressed as an annual growth percentage depicting growth of the company output (per entity)
or the national product (per nation). Real economic growth (as opposed to inflation) consists
of two components. These components are an increase in production input and an increase in
productivity.

6.In the study of motivation Abraham Maslow (1954) give five levels of human needs. The
first level contains physiological needs, which can be viewed as physical comfort, pay and
basic working conditions. The second level concerns safety and job safety. Social needs, in the
third level, relate to factors such as belongingness, friendship and having relationship in the
workplace.

7.Oguejiofor, Chinyere J, Umeano Ngozi E (2018) found that retirement benefits

unequivocally affected employee’s responsibility giving more young employees a convincing
motivation to proceed working for their boss and urging more seasoned employees to resign
on a convenient premise, accordingly inferring that retirement benefits emphatically influence
employee performance.

8.Nkiru Peace Nwakoby, Daniel Chi Jnr. Chukwurah (2020) concluded that remuneration
programs like instructive expenses, transport recompense, leave benefits, awards expenses, and
so forth, which influences worker fulfilments.

9.Kartika Sharma, Nitin Jaiswal (2018) established that security benefits added to worker
self-advancement consequently reasoning that business security benefits positively affect
employees.

10.Maslach (1996) Job satisfaction and burnout are important areas of study because of the
financial effects and social effects of job satisfaction and the damaging physical and
psychological impacts of burnout.

11.Wilzinki (1991) the satisfaction refers to an individual’s general attitude towards higher job.
A person with a high level of job satisfaction holds positive attitudes about the job, while a
person who is dissatisfied with his/her job holds negative attitudes about the job. When people
speak of employee’s attitudes make often than not, they mean job satisfaction.

40
12.beroi (2010) in a study on rewards and benefits has found that it is not just how much reward
our staff that matters. Rather, it is what reward them for how measure the results of this
investment. Variable pay, benefits differentiated rewards and performance matric these are all
key aspects play the important role in ROI measurement and essential part of an organization’s
reward architecture. In benefits. Organization has the mindset that their high performance will
only stay with them if their salary was externally competitive not only on aspects, but also in
terms of benefits and total remunerate

13.Gresham (2005) in a study on responsibility in plain language found that the responsibility
an employee to handle health costs through a consumer directed plan. Explanation on the
defined contribution retirement products, reflections, reason it is necessary that benefits
manager should continuously reassess their programmes and communications with their
employees.

14.Miller (2008) in a study on health paid leave benefits has found that health coverage remains
by far the costliest benefits provided to employees more than one quarter of human resource
professionals, 29%, indicated their organisation now provide health saving accounts, paid
family leaves and paid paternity leave all declined in 2008compared with 2007.

15. A study was conducted on welfare measures by KIRABAKARAN (1983) his flings are as
follows Dunlop India Ltd, has under taken a number of welfare measures in addition to
statutory provision. Majority of the workers and staff are satisfied about the welfare facilities
provided by the concern.

16.According to MR. R. PRADEEP (2009) "Employee welfare I compensate term including

various services, benefits and facilities offered to employee by the employers. Through such
generous fringe benefits the employer makes life w living for employees. “Welfare includes
anything that is done for the comfort and improvement of employees and is provided over and
above the wages. Welfare helps in keeping the morale and motivation of the employees high
so as to retain the employees for longer duration. The welfare measures need not be in monetary
terms only but in any kind/forms. Employee welfare includes monitoring of working
conditions, creation of industrial harmony through infrastructure for health, industrial relations
and insurance against disease, accident and unemployment for the workers and their families.

41
17.Anand (2010) stated in his research work that employees of IT sector in Chennai district are
satisfied with the welfare measures provided by the company. But researcher also suggested some
recommendation pertaining to periodic audit of welfare programs by management, personality
& tress management etc. Modifications are requiring in the field of safety consciousness,
grievance handling & sexual harassment especially for women employees.

18.Balaji (2013) explored the influence of rewards & welfare on job satisfaction & productivity
of both public & private sector employees in measure Industrial cities of Tamil Nādu. The
working environment was faire in terms of office accommodation & furniture, working
material, health & safety facilities but on the other side he recommended salary increment,
allowances, bonus, fringe benefit &compensation on regular & specific periods to keep their
moral high & make them productive.

19.Bhagat (2015) revealed that cleanliness is the big issue in Nashik MIDC. She suggested
that cleanliness should be improved, clean & adequate latrines &urinals at the work place
improve indirect motivation to employees.

20.Bhatti p. (2013) identified in her research work that the different provisions provided to the
employees under factories Act 1948 are showing positive relation with the employee’s
satisfaction. Company should know the requirement of employees in term of different
nonfinancial motivational tools. This study can be useful for identifying the factories which
needs to employee satisfaction & company can use those factors retention tool for retaining
employees in the organization.

21.Bosibori (2012) suggested that govt. through national police service in Kenya (KISII central
district) should improve the provision of health services, welfare amenities& social services
provided to the police officers so have to improve service delivery & also recommended that
govt. should be well formulated policies on each area of welfare services in the national police
service in KISII central district

22.Chahal (2013) inferred from her research work that some factors like working environment,
performance appraisal techniques, relationship other employees etc. are contributing towards
job satisfaction in bank employees, while job dissatisfaction caused by working hours (lack of
training &development) of frequent transfers of the employees. He suggested that employee

42
welfare measures/facilities of job security should be given at most importance so that the
employee turnover may be restricted.
23.Gope (2013) studied the employee per section on quality of work life in sugar mills of Uttar
Pradesh (UP)found that private sugar mill employees enjoy better QWL practices in
comparison to cooperative sector or employees. On lighting facilities (LF), safety measure
(SF), health facilities (HF), welfare facility (WF), etc. but cooperative sugar mill employees
enjoy better employee welfare facilities &supervisor interference (SI) to private sugar mill
employees. He suggested that to improve QWL is first to identify &then try to satisfy
employees important needs in through their experience in their working environment.

24.Guruswamy (2012) asserted that there is no significant relationship between the sex of the
respondent level of satisfaction on washing facilities in textile industry at Coimbatore district.
Also, he stated that there is a positive relationship the income of the respondent& the level of
the satisfaction on canteen facilities.

25.Hangarki (2014) revealed the relationship between employee satisfaction level & welfare
measures in selected national bank in Hyderabad Karnataka region. It is clear that welfare
facilitated employment by bank are not equally satisfactory to all employees. Most of the
employees are dissatisfied with the clarity and transparency in communication, training&
development, lunch rooms & rest rooms, health checkup camp etc. He recommended some
measures but separate lunch room & rest rooms are most important in those amenities because
employees are very inconvenient to have their lunch in front of the customer.

26.Jain (2012) implied by her research work that public sector bank employees are more
satisfied with his jobs rather than private bank employees the main cause of dissatisfaction
among private bank employees are job in security their jobs are highly competitive. Also,
welfare facilities and clearly defined & legally enforced in public sector banks while there is
neither well planned nor well executed welfare facilities InPrivate banks. This is other reason
of dissatisfaction among private bank employees. Employee’s turnover high & job security low
in private bank employees.

27.Jeyapragash (2013) Studied organizational climate in total 14 banks which are 10 private
sectors, new private sector & public sector banks & 280 respondents. From din Digul district,
Tamil Nādu the result showed that organization climate within public sector bank employees
were good compared to the other private banks. They recommended other banks to improve in

43
the level of organizational climate, performance appraisal, and image of your bank, training
&development, employee grievance handling procedure etc.
28.Kumar (2013) described that 100% employees of Tamil Nādu state transport corporation,
Villupuram division were aware of the welfare measures in Public Sector Transport
Corporation. Researcher found that most of the employees were do not satisfied with welfare
measures such as canteen, night duty, restrooms & gratuity 89% employees said work load is
very high. Researcher suggested the govt to take keen interest to fill up the vacancies to share
the work among them as employees are burdened with heavy work load.

29.Loga Sakthi K (2013) inferred that most of the respondents are satisfied with the facilities
provided by the organization. Some of the employees are not satisfied with medical
reimbursement facilities.

30.Mahesh (2014) instated that employees having 5-10 years’ experience are highly satisfied
welfare measures provided by their companies in SIPCOT industrial area in Tamil Nadu. He
suggested some recommendations regarding welfare inspector, transfer policies &disciplinary
rules for betterment of employee.

EMPLOYEE BENEFITS

The most important factor that a person expects from a job is the benefits that come from it. It
seeks economic benefits, social benefits, as well as psychological benefits. There are various
factors that affect job satisfaction, and they can be classified as financial benefits and
nonfinancial benefits. It has been shown that benefits receive from the job determine the worker
satisfaction. (Arnold, 2019). When considering employee benefits, financial benefits alone are
not sufficient to measure worker satisfaction. Financial benefits such as salaries, allowances,
promotions, other incentives, bonuses, overtime, uniforms, official vehicles, telephone
allowances, etc. directly affect employee satisfaction. (Spector, 1997). Further, researchers
pointed out that non-financial benefits like job recognition, service identity, interaction with
co-workers, collaboration with top management, numerous job opportunities and social
acceptance are paramount. As per Sophie (2008), financial benefits are directly related to
money and non-financial benefits are not directly related to money. Also, the total benefit
comes from the sum of both financial benefits and the non-financial benefits. Total benefits can
be classified in another way. Instead, transactional rewards (tangible rewards) are related to

44
receipts and payments. The other benefit is the rational reward (intangible reward) that accrue
to education, development and the service experience. (Brown, 2020).

THEORETICAL FRAMEWORK

In this section the researcher briefly reviews key aspects of the theoretical debate as it relates
to the expected association between employee benefits and its impact on employee
performance. Where possible, relevant literature reviews will cover areas that focus on
employee benefit packages and how these fringe benefits contribute to the general output of
employees in an organization.

ORGANIZATIONAL GOALS THEORY

Regardless of the effects of legislation on salaries in general, compensation continue to be

influenced by several factors that are producing some important trends in compensating
workers. One of such trends is aligning wages to the organization’s goals. Others include
tailoring compensation to the needs of employees; better salary, and pay equity Various existing
theories to support this argument have been identified and one of such is the Reinforcement
theory which is propounded by B.F. Skinner. (Fisk 2001).

ENVIRONMENT/REINFORCEMENT THEORY

According to Fisk (2001), this theory holds that individuals can actually be motivated by their
work environment when it is properly developed. Hence, rather than considering internal
factors such as attitudes, feelings, impressions and other cognitive behaviour, employers should
keep on making positive changes in the external environment of the organization. It emphasizes
the importance of a person's actual experience of a reward, and the implication of this for
compensation management is that high employee performance followed by a monetary reward
will make future high performance more likely.

EXPECTANCY THEORY

Another theory that is relevant to the study is the Expectancy theory propounded by Victor
Vroom. This theory though focuses on the link between rewards and behaviour too emphasizes
expected rewards rather than experienced rewards. In other words, it is mainly concerned with
effects of incentives. It stresses that behaviours (job performance) can be described as a

45
function of ability and motivation while motivation is a function of expectancy, instrumentality,
and valence perceptions. Expectancy perceptions often have more to do with job design and
training than pay systems. Although this theory implies that linking an increasing number of
rewards to performance will increase motivation and performance, some authors have
questioned this assumption, arguing that monetary rewards may increase intrinsic motivation.

Extrinsic motivation depends on rewards – such as pay and benefits – which are controlled by
an external source whereas intrinsic motivation depends on rewards that flow naturally from
work itself. Therefore, while it is important to keep in mind that money is not the only effective
way to motivate behaviour, and that money rewards will not always be the answer to motivation
problems, it does not appear that monetary rewards run much risk of compromising intrinsic
motivation in most work settings. (Frisk, 2001)

EQUITY THEORY

Another theory relevant to the study is the Equity Theory and Fairness, propounded by John
Stacey Adams as Equity Theory but was later on advanced by Elaine Hatfield and her
colleagues, which is now known as Equity Theory and Fairness. This theory which probably
came as a result of continuous agitation for fair and equitable wages for all workers is the
bedrock on which this study hinges.

The theory which is divided into two suggests that people evaluate the fairness of their
situations by comparing them with those of other people. According to this theory, a person (P)
compares his/her own ratio of perceived outcomes (O = pay benefits, working conditions) to
perceived inputs (I = effort, ability, experience) to the ratio of a comparison other (O) – external
inequity pays. If P's ratio is smaller than the comparison with Other's ratio under reward
inequity results. But if P's ratio is larger, over reward inequity results, though evidence suggests
that this type of inequity is less likely to occur and less likely to be sustained because P may
rationalize the situation by re-evaluating his/her outcomes less favourably or inputs (that is
self-worth) more favourably (equity theory and fairness).

Meanwhile, the consequence of P's action depends largely on whether equity is perceived. If
equity is perceived no change is expected in P's attitude but if inequity is perceived, it may cost
P to restore equity through some of the following counterproductive ways:

46
Reducing one's own inputs (not working as hard);

Increasing one's outcomes (such as by theft)

Leaving the situation that generates perceived inequity (leaving the organization or refusing to
work or cooperate with employees who are perceived as overrewarded). The main implication
of this theory for managing employee compensation is that to a large extent, employees
evaluate their pay by comparing it with what others are paid, thereby influencing their attitude
to work by such companies.

HYGIENE THEORY

This is also referred to as Herzberg's motivation theory after its propounded Fredrick Herzberg
1959. His study concentrated on satisfaction at work. This is derived from another initial
interview of two hundred engineers and accountants on when they experienced work fulfilment
and unsatisfaction. From this interview, Herzberg and his team arrived at conclusion that certain
factors tended to lead to job satisfaction, while others led frequently to dissatisfaction.

Those factors giving rise to satisfaction alluded to as motivation while those lead to
dissatisfaction were called Hygiene Factors, hence the Name-Two Factor Motivation Theories.
This study was further applied to groups in both manual and clerical departments with same
outcome. For this study, the following important motivators were adduced: Achievement,
Recognition, Work, Responsibility and Advancement

All these factors identified with the work content. On the order hand, the hygiene factors
include company policy and administration, supervisions, salary, interpersonal relations and
working condition. These are identified with the context or the environment of work than to
job content.

The main distinction between motivation and hygiene is whereas the motivators brought about
positive satisfaction, the hygiene factors only served to prevent dissatisfaction. In order words,
if motivators are absent from the job, the employee will experience real dissatisfaction (Onih,
2020).

Finally, Herzberg is in agreement with other researchers that salary, incentives, adequate
supervision and working conditions are good ways to make workers put in their best for quality
output or performances.

47
2.2 RESEARCH QUESTIONS

In-order to achieve the stated objectives of this study, the following research questions were
developed.

1.What are the employee benefits exist in karimtharuvi tea estate?

2.What processes are involved in drafting employee benefit policies, and what factors are
considered when planning and implementing these policies?

3. What effects have your company’s employee benefit packages had on your job performance?

2.3 SUMMARY

Chapter: -2 It gives an introduction about the review of literature, research

questions

48
3.1 RESEARCH METHODOLOGY

Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design, sampling
procedure & fieldwork done & finally the analysis procedure. The methodology used in the
study consistent of sample survey using both primary & secondary data. The primary data has
been collected with the help of questionnaire as well as personal observation book, magazine;
journals have been referred for secondary data. The questionnaire has been drafted & presented
by the researcher himself.

3.2 RESEARCH DESIGN

The study is descriptive in nature and hence designed as an empirical one based on the survey
method. Several issues relating to the main aspects of the study had been discussed in detail
with experts, researchers and other eminent personalities Tea planters to get an insight into the
subject prior to the collection of data. A descriptive method of study followed to understand
the whether the employees are satisfied with their work. Both primary and secondary data have
been collected for the study.

SOURCE OF DATA COLLECTION

Both primary and secondary sources of data are collected for the study.

Primary data has been collected by distributing the structured questionnaire to the workers

Secondary Data

A detailed survey of literature has been undertaken in order to be familiarised with the various
aspects of tea plantation. They normally conduct studies and publish articles about the role of
tea industry in our economy. To evolve an appropriate methodology for the study and to
formulate a conceptual framework for the study, the secondary data were immensely helpful,
for these purposes, various secondary sources like books and periodicals, research articles,
seminar reports, newspapers, study reports of expert committees, departmental publications,
plan documents, unpublished dissertations, etc were surveyed. To make it more clear for data

49
presentation, and as a substitute to replicate the data tables as such, appropriate data to the point
under discussion only have been presented. To avoid bias in interpretation of data, statistical
analysis has been resorted to, the details of which are furnished along with presentation and
discussion of data. Most of the data were presented in tables, bar charts, pie diagrams,
multidimensional scaling, etc., were also used to illustrate the data.

3.3 SAMPLE DESIGN

Stratified sampling method has been used for selecting the respondents from the tea estate. The
study covers almost all tea workers in the tea estate. At the first stage of sampling, tea workers
were selected as a convenience sample' for this study. Then the selected size of the sample
design is 150.

CONVENIENCE SAMPLING

Convenience sampling is the most common form of non-probabilistic sampling, mostly

because it is misused. Convenience sampling is a method of collecting samples by taking
samples that are conveniently located around a location or Internet service.

3.4 DATA COLLECTION

The data were collected by distributing questionnaire to the with the samples selected for the
study. Multiple choice questions, open-end questions, rankings by the respondents and a five-
point ranking scale developed for this study in conformity with statistical methods and
principles were used wherever necessary. The respondents were encouraged to file the
questionnaires freely and frankly to express their opinions and suggestions. All the responses
are collected personally from the respondents this ensured the secrecy of the responses and the
privacy of the identity of the respondents.

3.5 PERIOD OF STUDY

The duration of the study was for a period of 45 days in karimtharuvi tea estate.

3.6 TOOLS USED FOR THE STUDY

The tool used to collect the data is questionnaires was analysed using simple statistical tool like
chi square and percentage analysis. The data collected were classified, tabulated, and analysed
by using the following statistical tool:

50
PERCENTAGE ANALYSIS

Percentage analysis is the method to represent raw streams of data as a percentage (a part in
100 percent) for better understanding of collected data. Percentage analysis refers to a special
kind of ratio. It is used in making comparison between 2 or more series of data. In this research
various percentage are identified in the analysis and they are presented pictorially by way of pie
or bar diagrams to have a better quality.

(value/total value) ×100%.

CHI SQUARE

The chi square test is used to determine whether there is significant difference between
expected frequencies and the observed frequencies in one or more categories. A chi square test
can be used to attempt rejection of null hypothesis that the data are independent.

𝐱𝟐 = ∑ (𝟎𝐛𝐬𝐞𝐫𝐯𝐞𝐝 − 𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝)2

𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝

3.7 LIMITATION OF THE STUDY

• The workers fear to answer certain questions, because they thought that it will affect their
job.

• Time constraint is another limiting factor. The respondents could be approached only
during break hours and also there was a specified time to complete the project in the
organization.
• Inferences were drawn from a sample. Generalization is not free from sampling errors,
so the navigator should not go deep into total position.

• Management did not disclose the confidential reports.

• The navigator has to depend mainly on primary data.
• The attitude, views and thinking pattern of each person is different. This is reflected in
their answers also

51
 4.1 AGE WISE CLASSIFICATION OF THE RESPONDENTS

AGE NO. OF RESPONDENTS PERCENTAGE

BELOW 30 YRS 12 10%

31-40 YRS 24 20%

41-50 YRS 54 45%

51-60 YRS 30 25%

TOTAL 120 100

AGE WISE CLASSIFICATION OF RESPONDENTS

60
54

50

40
30
30
24

20
12
10
10% 20% 45% 25%
0
BELOW 30 31- 40YRS 41- 50 YRS 51 -60YRS
YRS
AGE

NO OF RESPONDENTS PERCENATAGE

INTERPRETATION

From the above table it is interpreted that the majority 45% of the respondents are in the age
group of 51 - 60 Yrs.25% belongs to the age group of 41-50. The 20% of respondents are in
the age group of 31-40yrs ,10% belongs to the age group of below 30yrs.Therefore it is clear
that 45% the employees are belonging to the age group of 41-50yrs.

52
 4.2 GENDER WISE CLASSIFICATION OF THE RESPONDENTS

GENDER NO. OF RESPONDENTS PERCENTAGE

FEMALE 72 40%

MALE 48 60%

TOTAL 120 100

GENDER WISE CLASSIFICATION OF THE RESPONDENTS

80
72
70

60

48
50

40

30

20

10
40% 60%
0
FEMALE MALE
GENDER

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that the majority 60% of the respondents of karumtharuvi
tea estate is male and 40% of the respondents are female.

53
4.3 WORK EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

EXPERIENCE NO. OF RESPONDENT PERCENTAGE

0-5 YRS 18 15%

6-10 YRS 24 20%

11-15 RS 36 30%

ABOVE 15YRS 42 35%

TOTAL 120 100

WORK EXPERIENCE WISE CLASSIFICATION OF THE

RESPONDENT

18, 15%

42, 35%

24, 20%

36, 30%

0-5 YRS 6-10 YRS 11-15 YRS ABOVE 15YRS

INTERPRETATION

From the above table it is interpreted that 36% of the respondents are having the experience
up to 11-15 years,35% of the respondents have the experience of 6-10 years and 24% of the
respondents are having 0-5years and18% of respondents are above 15 years of experience.
Therefore, it is clear that 36% of the employees are with 11-15 years’ experience.

54
4.4 ARE THE RESPONDENTS ARE AWARE ABOUT THE EMPLOYEE
BENEFITS OFFERED BY THE COMPANY

OPINION NO. OF RESPONDENTS PERCENTAGE

Yes 108 95%

No 12 10%

TOTAL 120 100

AWARE ABOUT EMPLOYEE BENEFITS

120
108

100

80

60

40

20 12
95% 10%
0
Yes No
OPINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 95% of the respondents are aware about the employee
benefits offered, only 10% of the respondents are aware about the employee benefits offered.
Therefore, it is clear that 95% of employees in the company are aware about the employee
benefits offered to them

55
 4.5 RESPONDENTS OPINION REGARDING THE INFORMATION
RECEIVE ABOUT THEIR BENEFITS PLAN

OPINION NO. OF RESPONDENTS PERCENTAGE

EXCELLENT 72 60%

ABOVE AVERAGE 24 20%

AVERAGE 12 10%

BELOW AVERAGE 12 10%

TOTAL 120 100

INFORMATION RECEIVE ABOUT THEIR BENEFITS PLAN

80
72
70

60

50

40

30 24
20
12 12
10
60% 20% 10% 10%
0
EXCELLENT ABOVE AVERAGE AVERAGE BELOW AVERAGE
OPINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 60% of the respondents are excellent,20% of the
respondents are above average and 10% of the respondents are average and10% of respondents
are below average.

56
 4.6 RESPONDENTS OPINION ON THE TYPE OF HEALTH
INSURANCE ENROLLED IN

ENROLLMENT TYPE RESPONDENTS PERCENTAGE

SINGLE 36 30%

EMPLOYEE +1 24 20%

EMPLOYEE +SPOUSE 18 15%

EMPLOYEE +CHILDREN 12 10%

FAMILY 30 25%

TOTAL 120 100

TYPE OF HEALTH INSURANCE ENROLLED IN

40
36
35
30
24
25
20 18

15 12
10
5
30% 20% 15% 10%
0
SINGLE EMPLOYEE +1 EMPLOYEE +SPOUSE EMPLOYEE
+CHILDREN
ENROLMENT TYPE

RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 30% of the respondents are having single health
insurance,20% of the respondents have employee+1 health insurance and 15% of the
respondents are having employee spouse health insurance and10% of respondents are
employee children health insurance. Therefore, it is clear that 30% of the employees are with
single health insurance.

57
 4.7 RESPONDENTS OPINION ON MEDICAL FACILITY

MEDICAL FACILITY NO. OF RESPONDENT PERCENTAGE

HIGHLY SATISFIED 36 30%

SATISFIED 30 25%

MODERATELY SATISFIED 24 20%

DISSATISFIED 12 10 %

HIGHLY DISSATISFIED 18 15%

TOTAL 120 100

RESPONDENT OPINION ON MEDICAL FACILITY

40
36
35
30
30
24
25

20

15 12

10

5
30% 25% 20% 10%
0
HIGHLY SATISFIED SATISFIED MODERATELY SATISFIED DISSATISFIED
MEDICAL FACILITY

NO. OF RESPONDENT PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 30% of the respondents are highly satisfied with the
medical facilities,25% of the respondents are satisfied by the medical facilities provided,20%
are moderately satisfied and the least 10% are dissatisfied. Therefore, it is clear that 30% of
the employees are satisfied with the medical facilities provided.

58
 4.8 RESPONDENTS OPINION ON LEAVE FACILITIES

LEAVE FACILITY NO. OF RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 66 55%

SATISFIED 24 20%

DIS SATISFIED 18 15%

HIGHLY DIS SATISFIED 12 10%

TOTAL 120 100

RESPONDENTS OPINION ON LEAVE FACILITY

70 66

60

50

40

30 24
18
20
12
10
55% 20% 15% 10%
0
HIGHLY SATISFIED SATISFIED DIS SATISFIED HIGHLY DIS SATISFIED
LEAVE FACILITY

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 55% of the respondents are highly satisfied with the
leave facilities,20% of the respondents are satisfied by the leave facilities provided,15% are
dissatisfied and 10% are highly dissatisfied. Therefore, it is clear that 55% of the employees
are satisfied with leave facilities provided.

59
 4.9RESPONDENTS OPINION ON BONUS

OPINION NO. OF RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 78 65%

SATISFIED 18 15%

MODERATELY SATISFIED 12 10%

DISSATISFIED 12 10%

TOTAL 120 100

RESPONDENTS OPINION ON BONUS

90
78
80
70
60
50
40
30
18
20 12 12
10
65% 15% 10% 10%
0
HIGHLY SATISFIED SATISFIED MODERATELY DISSATISFIED
SATISFIED
OPINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 65% of the respondents are highly satisfied with the
bonus,15% of the respondents are satisfied by the bonus provided,10% are moderately satisfied
and 10% are dissatisfied. Therefore, it is clear that 65% of the employees are satisfied with
bonus provided.

60
 4.10 RESPONDENTS OPINION ON PROVIDENT FUND PAYMENT

OPINION NO. OF RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 60 50%

SATISFIED 24 20%

MODERATELY SATISFIED 18 15%

DISSATISFIED 18 15%

TOTAL 120 100

RESPONDENTS OPINION ON PF

70
60
60

50

40

30 24
18 18
20

10
50% 20% 15% 15%
0
HIGHLY SATISFIED SATISFIED MODERATELY DISSATISFIED
SATISFIED
OPINION

NO.OF RESPONDENT PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 50% of the respondents are satisfied by the PF
payment of the company, 20% of the respondents are satisfied,15% are moderately
satisfied,15% are dissatisfied by the PF payment.

61
 4.11 RESPONDENTS OPINION REAGARDING THE TRANSPORT
FACILITIES

OPINION NO. OF RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 54 45%

SATISFIED 24 20%

NEUTRAL 18 15%

DISSATISFIED 24 20%

TOTAL 120 100

OPINION REGARDING THE TRANSPORT FACILITY

60
54

50

40

30
24 24

20 18

10
45% 20% 15% 20%
0
HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED
OPINION

NO.OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 45% of the respondents are highly satisfied by the
transport facility provided, 20% of the respondents are satisfied,15% are neutral,15% are
dissatisfied by the transport facility provided.

62
 4.12 RESPONDENTS OPINION REGARDING THE HOUSING
FACILITY

OPINION NO. OF RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 48 40%

SATISFIED 30 25%

HIGHLY DISSATISFIED 18 15%

DISSATISFIED 24 20%

TOTAL 120 100

OPINION REGARDING HOUSING FACILITY

60

50 48

40

30
30
24

20 18

10

40% 25% 15% 20%

0
HIGHLY SATISFIED SATISFIED HIGHLY DISSATISFIED DISSATISFIED
0PINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 40% of the respondents are highly satisfied by the
housing facility provided, 25% of the respondents are satisfied,15% are highly satisfied,20%
are dissatisfied by the housing facility provided.

63
 4.13 RESPONDENT OPINION REGARDING THE POST RETIREMENT
BENEFITS

OPINION NO. OF RESPONDENTS PERCENTAGE

STRONGLY AGREE 54 45%

AGREE 30 25%

DISAGREE 18 15%

STRONGLY DISAGREE 18 15%

TOTAL 120 100

OPINION REGARDING THE POST RETRIMENT BENEFIT

60
54

50

40

30
30

20 18 18

10

45% 25% 15% 15%

0
Strongly argree agree disagree Strongly disagree
OPINION

no.of respondents percentage

INTERPRETATION

From the above table it is interpreted that 45% of the respondents are highly strongly agree by
the post-retirement benefit provided, 25% of the respondents are agree,15% are disagree,15%
are strongly disagree by the post-retirement benefit provided.

64
 4.14 RESPONDENTS OPINION ON THE EMPLOYEE STATE
INSURANCE

OPINION NO. OF RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 66 55%

SATISFIED 24 20%

MODERATELY SATISFIED 18 15%

DISSATISFIED 12 10%

TOTAL 120 100

OPINION ON THE EMPLOYEE STATE INSURANCE

70 66

60

50

40

30
24

20 18
12
10
55% 20% 15% 10%
0
HIGHLY SATISFIED SATISFIED MODERATELY DISSATISFIED
SATISFIED
OPINION

NO.OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 55% of the respondents are highly satisfied by the
ESI, 20% of the respondents are satisfied,15% are moderately satisfied,10% are dissatisfied by
the ESI.

65
 4.15 RESPONDENT OPINION ON THE GRATUITY FACILITY

OPINION NO. OF RESPONDENTS PERCENTAGE

EXCELLENT 54 45%

AVERAGE 36 30%

ABOVE AVERAGE 18 15%

BELOW AVERAGE 12 10%

TOTAL 120 100

OPINION ON THE GRATUITY FACILITY

60
54

50

40 36

30

20 18
12
10
45% 30% 15% 10%
0
EXCELLENT AVERAGE ABOVE AVERAGE BELOW AVERAGE
OPINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 45% of the respondents are excellent on gratuity
benefits provided,3% of the respondents are average,15% are above average,10% are below
average by the gratuity benefit provided.

66
 4.16 RESPONDENTS OPINION ON THE PAID TIME OFF

OPINION NO. OF RESPONDENTS PERCENTAGE

HIGHLY SATISFACTORY 72 60%

SATISFACTORY 30 25%

AVERAGE 18 15%

TOTAL 120 100

OPINION ON THE PAID TIME OFF

80
72
70

60

50

40
30
30

20 18

10
60% 25% 15%
0
HIGHLY SATISFACTORY SATISFACTORY AVERAGE
OPINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 60% of the respondents are highly on the paid time
off provided,25% of the respondents are satisfactory ,15% are average by the paid time off
provided

67
 4.17 RESPONDENT OPINION ON THE CONVEYANCE ALLOWANCE
OFFERED BY THE COMPANY

OPINION NO. OF RESPONDENTS PERCENTAGE

EXCELLENT 54 45%

ABOVE AVERAGE 30 25%

AVERAGE 30 25%

BELOW AVERAGE 6 5%

TOTAL 120 100

OPINION ON THE CONVEYANCE ALLOWANCE

60
54

50

40

30 30
30

20

10 6
45% 25% 25% 5%
0
EXCELLENT ABOVE AVERAGE AVERAGE BELOW AVERAGE
OPINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 45% of the respondents are excellent on conveyance
allowance provided,25% of the respondents are above average,25% are average,5% are below
average by the conveyance allowance provided.

68
 4.18 RESPONDENT OPINION ON THE FESTIVAL ALLOWANCE

OPINION NO. OF RESPONDENTS PERCENTAGE

SATISFIED 66 55%

HIGHLY SATISFIED 30 25%

MODERATELY SATISFIED 12 10%

DISSATISFIED 12 10%

TOTAL 120 100

OPINION ON THE FESTIVAL ALLOWANCE

70 66

60

50

40
30
30

20
12 12
10
55% 25% 10% 10%
0
SATISFIED HIGHLY SATISFIED MODERATELYSATISFIED DISSATISFIED
OPINIONS

NO.OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 55% of the respondents are satisfied with the
festival allowance,25% of the respondents are highly satisfied by the festival allowance,10%
are moderately satisfied and the least 10% are dissatisfied.

69
 4.19 RESPONDENT OPINION ON THE REGULAR INCREMENT

OPINION NO. OF RESPONDENTS PERCENTAGE

EXCELLENT 60 50%

ABOVE AVERAGE 36 30%

AVERAGE 12 10%

BELOW AVERAGE 12 10%

TOTAL 120 100

OPINION ON THE REGULAR INCREMENT

70
60
60

50

40 36

30

20
12 12
10
50% 30% 10% 10%
0
EXCELLENT ABOVE AVERAGE AVERAGE BELOW AVERAGE
OPINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 50% of the respondents are excellent on regular
increment provided,30% of the respondents are above average,10% are average,10% are below
average by the conveyance allowance provided.

70
 4.20 RESPONDENTS OPINION REAGARDING THE EMPLOYEE

BENEFITS MEET THEIR NEEDS

OPINION NO. OF RESPONDENTS PERCENTAGE

YES 102 85%

NO 12 10%

N/A 6 5%

TOTAL 120 100

OPINION REAARDING EMPLOYEE BENEFITS MEETS THEIR NEED

120

102
100

80

60

40

20 12
6
85% 10% 5%
0
YES NO N/A
OPINION

NO. OF RESPONDENTS PERCENTAGE

INTERPRETATION

From the above table it is interpreted that 85% of the respondents are satisfied with the employee
benefits and it meets their needs,10% of the respondents are no,5% are N/A

71
STATISTICAL ANALYSIS
CHI-SQUARE TEST

TABLE NO 4.21

EXPERIENCE OF THE RESPONDENTS * EMPLOYEES ARE AWARE ABOUT THE

EMPLOYEE BENEFITS OFFERED BY THE COMPANY

NULL HYPOTHESIS: There is no significant relationship between experience of the

respondents and employees are aware about the employee benefits offered by the company

ALTERNATE HYPOTHESIS: There is significant relationship between experience of the

respondents and employees are aware about the employee benefits offered by the company

Work experience * aware about employee benefits Crosstabulation

Count

Aware about employee benefits

Yes No Total
Work experience 0-5 Years 6 12 18

6-10 24 0 24
11-15 36 0 36
Above 15 42 0 42
Total 108 12 120

Chi-Square Tests
Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 75.556a 3 .000
Likelihood Ratio 55.105 3 .000
Linear-by-Linear Association 40.136 1 .000

N of Valid Cases 120

a. 4 cells (50.0%) have expected count less than 5. The minimum expected
count is 1.80.

72
INTERPRETATION
From the above table shows the significant value is .000 which is less than 0.05. So null
hypothesis is rejected and alternate hypothesis is accepted at 95% confidence level. Hence it is
concluded that there is a significant relationship between experience of the respondents and
employees are aware about the employee benefits offered by the company.

73
TABLE NO 4.22

AGE * RESPONDENTS OPINION ON THE TYPE OF HEALTH INSURANCE

ENROLLED IN COMPANY

NULL HYPOTHESIS: There is no significant relationship between age and respondents’

opinion on the type of health insurance enrolled in company.

ALTERNATE HYPOTHESIS: There is significant relationship between age and respondents’

opinion on the type of health insurance enrolled in company.

Age * health and insurance Crosstabulation

Count
Health and Insurance
Employee Employee Employee
Single +1 + Spouse + Children Family Total
age Below 12 0 0 0 0 12
30 Yrs.

31-40 24 0 0 0 0 24
41-50 0 24 18 12 0 54
51-60 0 0 0 0 30 30
Total 36 24 18 12 30 120

Chi-Square Tests
Asymptotic
Significance (2-
Value df sided)
Pearson Chi-Square 240.000a 12 .000
Likelihood Ratio 256.103 12 .000
Linear-by-Linear Association 94.287 1 .000

N of Valid Cases 120

a. 10 cells (50.0%) have expected count less than 5. The minimum expected count is
1.20.

74
INTERPRETATION
From the above table shows the significant value is .000 which is less than 0.05. So null
hypothesis is rejected, and alternate hypothesis is accepted at 95% confidence level. Hence it is
concluded that there is a significant relationship between age and respondents’ opinion on the
type of health insurance enrolled in comp

75
5.1 FINDINGS
• It was found that the majority of the respondents are in the age group of 41-50yrs.The
percentage of respondents below 5o and above 40 yrs. constitute were few only.

• The majority Respondents of karimtharuvi tea estate is male and majority are female
• It was found that majority of the respondents are having the experience up to 5 years,
some of the Respondents have the experience of 6-10 year and few of the respondents
are having more than 11 and above 15 years of experience.
• Regarding the medical facilities majority of the respondents are highly satisfied with
the facilities, some of the respondents are satisfied by medical facilities provided few
are moderately satisfied and the dissatisfied.
• The study reveals that majority of the respondents are highly satisfied with the leave
facilities, some of the respondents are satisfied by the leave facilities provided, few are
moderately satisfied and minority are dissatisfied and highly dissatisfied by the leave
facility.

• The study reveals that majority of the respondents are highly satisfied by the bonus
payment of the company, some of the respondents are satisfied, few are moderately
satisfied and least are dissatisfied by the bonus payment.
• It was found that majority of the respondents are satisfied by the PF payment of the
company, some of the respondents are highly satisfied and moderately satisfied, few
are dissatisfied by the PF payment.
• The study reveals that majority of the respondents are enrolled for single health
insurance of the company, some of the respondents are employee +1, few are employee
+spouse and least are employee +children and family.
• As far as transportation facility is concerned majority of the respondents are satisfied,
some of the respondents are highly satisfied by the transportation facilities provided,
few are moderately satisfied and minority are dissatisfied and highly dissatisfied by the
transportation facilities.

• Regarding housing facilities is concerned majority of the respondents are satisfied,

some of the respondents are highly satisfied by the housing facilities provided, few are
moderately satisfied and minority are dissatisfied and highly dissatisfied by the housing
facilities.

76
• It was found that majority of the respondents are strongly agree the post-retirement
benefits of the company, some of the respondents agree and disagree, few are strongly
disagreed.
• Regarding ESI majority of the respondents are highly satisfied by the ESI, some of the
respondents are satisfied, few are moderately satisfied and least are dissatisfied by the
ESI.
• As far as gratuity is concerned majority of the respondents are excellent by the gratuity
of the company, some of the respondent’s average, few are above average and least are
below average.

• It was found that majority of the respondents are highly satisfactory by the paid time
off the company, some of the respondents satisfactory, few are average.

• As far as conveyance allows is concerned majority of the respondents are excellent by

the conveyance allows of the company, some of the respondent’s average, few are above
average and least are below average.
• Regarding festival allowance majority of the respondents are highly satisfied by the
festival allowance, some of the respondents are satisfied, few are moderately satisfied
and least are dissatisfied by the festival allowance.
• It was found that the majority of the respondents are aware about the employee benefits
offered by the company.

• The study reveals that majority of the respondents are excellent with the information
regarding benefit plan, some of the respondents are above average with the information
regarding benefit plan, few are average and minority are below average.
• Regarding regular increment is concerned majority of the respondents are excellent,
some of the respondents are above average by the regular increment provided, few are
average and minority are below average.

The majority Respondents are satisfied by the employee benefits which meet all their needs.

77
5.2 SUGGESTIONS

From the study we can found that few employees are not fully satisfied with the employee
benefits provided by the company. The management should consider this and necessary
arrangements should be made to provide adequate facilities to improve the efficiency of the
workers.

• We can also understand from the findings that there are few employees not being
satisfied with the medical facilities available in the organization. The management
should pay kind attention in this regard to improve the medical facilities.
• The management shall adopt appropriate communication system to ensure that all the
future plans and company policies being reached to all the employees in the
organization.
• The management should take appropriate action to improve the transportation facilities
as some of the employees are dissatisfied by the transportation facilities provided by
the organization.
• The company can also establish a council constituting of members from all the
departments to device the welfare measures and to make the employees much more
satisfied.
• The workers should provide the training and awareness programme for improving their
skilled and also conducted the seminar by the experts in the similar filed

• The tea estate company Should provide the counselling program for their development.
• The workers have to be properly appreciation and reward for their hardworking as well
as they will motivate and there by increases their efficiency.

78
5.3 CONCLUSION

The researcher is benefited with the study, because the topic will help the management to get
effective feedback from the employees about the effectiveness of employee benefits prevailing
in the organization. It also provides researcher an opportunity to expose with functions of the
human resource department and able to well versed with statutory and non-statutory welfare
measures adopted in the organization. Employee benefits play an increasingly significant role
in the lives of employees and their families. Most companies operate in an environment in
which an educated work force has come to expect a comprehensive benefits program. Indeed,
the absence of a program or an inadequate program can seriously hinder a company's ability to
attract and keep good personnel. Employers must be aware of these issues and be ready to make
informed decisions when they select employee benefit

The study provides various suggestions to the management including various welfare measures
to enhance effectiveness of employees benefits in the “KARUMTHARUVI TEA ESTATE”.

At the same time employees got opportunity to express their view about various components
of the employee benefits prevailing in “KARUMTHARUVI TEA ESTATE”. It is also
expected that improvement will be made and appropriate actions will be taken based on the
suggestions and opinions given by the respondents and researcher.

79
REFERENCES
1. Anastasiadou SD, Zirinoglou PA (2015) EFQM dimensions in Greek primary education
system. ProcediaEcon Finance 33:411–431
2.CAHRS (2006) CAHRS Top ten list, July 2006. Centre for Advanced Human Resource
Management Research.
3. Christoph LL (1996) The effects of fringe benefits on organizational commitment with the
hotel/motel indus-try. Doctor of Philosophy Dissertation, Graduate School of Clemson
University
4. Day J (1996) Population projections of the United States by age, sex, race, and Hispanic
origin: 1995 to 2050. Cur-rent population reports. U.S. Bureau of the Census, Washington, DC,
pp P25–P1130
5.Dreher GF, Ash RA, Bretz RD (1988) Benefit coverage and employee cost: critical factors in
explaining compensation satisfaction. Pers Psychol 41:237–25
6. Allen, N., & Meyer, J. (1990). The measurement and antecedents of Affective,
Continuance and Normative Commitment to the organization. Journal of Occupational
Psychology, 63(1),
1-18.
7. Allen, N., & Meyer, J. (1996). Affective, Continuance, and Normative Commitment to the
Organization: An Examination of Construct Validity. Journal of Vocational Behaviour.
8. Artz, B. (2010). Fringe benefits and job satisfaction. International Journal of Manpower,
31(6), 626-644.
9. Avey, J. B., Luthans, F., & Youssef, C. M. (2010). The Additive Value of Positive
Psychological Capital in Predicting Work Attitudes and Behaviours. Journal of
Management.
10. Barberis, N. C. (2013). Thirty Years of Prospect Theory in Economics: A Review and
Assessment. Journal of Economic Perspectives.
11. Baughman, R., DiNardi, D., & Holtz-Eakin, D. (2003). Productivity and wage effects of
“family.
friendly” fringe benefits. International Journal of Manpower, 24(3), 247-259.
12. Blau, P. (1964). Exchange and power in social life. New York: Wiley.
13.Casper, W. J., & Harris, C. M. (2008). Work-life benefits and organizational attachment:
Self-interest utility and signalling theory models. Journal of Vocational Behaviour.
BOOKS

1.Human Resource Management (12thEdition) by C.B. Mamoria.

2. Human Resource Management (8th Edition) by Gary Dessler.

3. Human Resource Management (6th Edition) by David. A. Decenzo & Stephen P. Robbins.

4. Research Methodology (5th Edition) by C.R. Kothari. 5) Research Methodology (5th Edition)
by Donald. L. McBurney.

5.Ashwatappa.k, Human recourses and personnel management, Tata McGraw Hill,1999, New
Delhi

6.Gary Dessler, HRMprentice hall,10th Edition 2004, New Delhi. 3. Sarma A.M Aspects of
labour welfare & social security, Himalaya publishing House, 10th edition,2008, Mumbai.

7.Kothari, research methodology, TataMc.graw hill publishing company limited 13th edition
1982.

8.HRM By VSP Rao published by excel books (2000).

WEBSITES

http://www.google.com http://indistrialrelations.naukrihb.com

http://projectsera.blogspop.com http://citehr.com http://www.sc www.indianmba.com

www.star health.com www. hrresources.com

QUESTIONNAIRE
Dear respondent,
I am DEVU.K, a 3rd semester MBA student of Nehru college of Management. As part of my
studies, I am doing a project at KARIMTHARUVI TEA ESTATE on the topic “A STUDY ON
THE EFFECTIVENESS OF EMPLOYEE BENEFITS OFFERED BY KARIMTHARUVI
TEA ESTATE TO THEIR WORKERS” I would appreciate if you could spend a few minutes
of your valuable time to carry out this survey. Here I also declare that this data will be kept
confidential and it will be used only for my academic purpose.

1. Age
a) Below 30yr
b) 31-40yrs
c) 41- 50yrs
d) 51-60yrs

2. Gender

a) Female

b) Male

3. how long you have been working at the company?

a) 0-5yrs

b) 6-10yrs

c) 11-15yrs

d) Above 15yrs
4. Are you aware of all the employee benefits offered by the company?

a) Yes

b) No

5. How do you rate the information you received about your benefit plan?

a) Excellent

b) Above average

c) Average

d) Below average

e) Poor
6.which level of health insurance are you currently enrolled in?
a) Single
b) Employee + 1
c)Employee+ spouse
d)Employee + children
e) Family
7.How do you rate the medical facility provided by the company?

a) highly satisfied
b) satisfied
c) moderately satisfied
d) dissatisfied
e) highly dissatisfied
8. How do you rate your leave facilities?

a) highly satisfied
b) satisfied
c) moderately satisfied
d) dissatisfied
e) highly dissatisfied
9.what is your opinion about bonus provided by the company?

a) highly satisfied
b) satisfied
c) moderately satisfied
d) dissatisfied
e) highly dissatisfied
10. Are you satisfied with your provident fund payment?

a) highly satisfied
b) satisfied
c) moderately satisfied
d) dissatisfied
e) highly dissatisfied
11. Are you satisfied with the transport facilities provided by the company?

a) highly satisfied
b) satisfied
c) neutral
d) dissatisfied

12. Are you satisfied with the housing facilities provided by the company?

a) highly satisfied
b) satisfied
c) highly dissatisfied
d) dissatisfied

13. how do you rate your post-retirement benefit?

a) Strongly agree
b) Agree
c) Disagree
d) Strongly disagree
14. how do you rate you employee state insurance?

a) highly satisfied
b) satisfied
c) moderately satisfied
d) dissatisfied
15. what is your opinion about gratuity facility?

a) Excellent
b) Average
c) Above average
d) Below average
16. what is your opinion about paid time off provided by the company?

a) Highly satisfactory
b) Satisfactory
c) Average
17. what is your opinion about the conveyance allowance offered by the company?

a) Excellent
b) Average
c) Above average
d) Below average
18. how do you rate your festival allowance provided by the company?

a) highly satisfied
b) satisfied
c) moderately satisfied
d) dissatisfied

19. what is your opinion regarding regular increment?

a) Excellent
b) Average
c) Above average
d) Below average

20. do the employee benefits offered by the company meet your needs?

a) Yes
b) No