CORPORATE EMPLOYEE BENEFIT SCHEMES

Once you have great employees on board, how do you keep them from jumping ship?  One way is by offering a good benefits package.

Many small-business owners mistakenly believe they cannot afford to offer benefits.  But while going without benefits may boost your bottom line in the short run, then penny-wise philosophy could strangle your business's chances for long-term prosperity. There are certain benefits good employees feel they must have.  Heading the list of must-have benefits is medical insurance, but many job applicants also demand a retirement plan, disability insurance and more.  Tell these applicants no benefits are offered, and often top-flight candidates will head for the door.

The positive side to this coin: Offer the right benefit, and your business may just jump-start its growth.  Give employees the benefits they value, and they'll be more satisfied, miss fewer workdays, be less likely to quit, and have higher commitment to meeting the company's goals.  The research shows that when employees feel their benefits needs are satisfied, they're more productive.

Corporate Employee Benefit Schemes are designed to provide coverage for employees of small businesses or large corporations.

The employee benefits provided usually include

a) Personal Accident cover which provides benefits upon partial/total and /or temporary/permanent disability due to accident.
b) Hospitalisation & Surgical benefits which cover in-patient medical expenses as well as outpatient accidental, cancer or kidney dialysis treatment.
c) Term Insurance which provides lump sum benefits upon death and total permanent disablement.

The employee benefits can be extended to include critical illness cover and retirement funds.

Corporate Employee Benefit Schemes can be specially customized to meet the requirements of participating companies. Some of the benefits like Personal Accident and Hospitalisation & Surgical may be tax deductible to the corporations or companies if properly designed.

The premiums are usually more attractive than personal policies due mainly to the spread of risk.  As such, the premiums are dependent on the number of participating employees, gender distribution and job classification.

Corporate Employee Benefit Schemes are usually non-contributory, that is, the company pays the full premium.  It can also be partial or fully contributory, especially retirement schemes.  For retirement schemes, it is common to include a vesting clause which helps promote employee retention. Defined contribution schemes are more commonly used for Employee Benefits as the expenses are predetermined and easier to manage compared to Defined Benefit Schemes.

Due to the complexities and the various regulatory requirements, it is advisable to work with insurance advisors who are familiar with the intricacies of the corporate employee benefit schemes, starting with the objectives or purpose of the corporate schemes.

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