What is Corporate Welfare?

Corporate benefits, in simple terms, are various supplementary remunerations and services that are provided by employees to non-monetary wages or deferred payments to improve the quality of life of themselves and their families. For example, companies provide employees with heatstroke cooling supplies, shuttle buses, free travel services, welfare rooms and so on. Enterprise welfare is a kind of welfare treatment specially targeted at employees within the organization, taking the enterprise as the main body of responsibility.

Corporate Welfare

Corporate benefits, in simple terms, are various supplements provided by the company to employees to improve the quality of life of themselves and their families, mainly in the form of non-monetary wages or deferred payments.

Generally speaking, corporate benefits consist of statutory benefits and self-employed benefits. Statutory benefits are the welfare protection policies enforced by the state through legislation, mainly including social insurance and statutory holidays. Enterprise self-employed benefits, that is, a series of benefits provided by employees to their employees and their family members in addition to wages and statutory benefits, including enterprise supplementary insurance (such as enterprise annuities) ),currency

The earliest welfare systems to protect the interests of workers also emerged from industrialized countries. Later in the 19th century, Germany first implemented

According to the conventional division method, benefits can be divided into mandatory benefits and voluntary benefits. The former means that according to government policies and regulations, all domestically registered companies must provide benefits to employees, such as endowment insurance, medical insurance, unemployment insurance,

For enterprises, while various corporate welfare programs have certain social functions, they have also become the main incentive for enterprises to attract and retain talents. Cash and employee benefits are both effective ways to retain employees, but they have different characteristics. Although visible and available cash can have a rapid impact on talents and eliminate the differentiated requirements for employee benefits in a short period of time, its non-persistent shortcomings often allow other companies to use higher salaries. People are robbed, especially for small and medium-sized enterprises with insufficient financial strength. If they only rely on cash to retain people, it will be difficult to avoid the disaster of brain drain. And employee benefits with deferred payments can not only avoid the embarrassment of lack of financial resources, but also maintain talents well, becoming a "golden handcuff" to slow down the labor flow of enterprises.
For employees, medical insurance, pension insurance,

It is a good thing for companies to give benefits to employees, which can motivate employees to work better for the company. But improper benefits can be counterproductive. Five factors affecting the effectiveness of corporate welfare: egalitarianism, lack of flexibility in welfare settings, lack of effectiveness, employees 'lack of participation rights, and employees' lack of identification with benefits.

Average well-being

The egalitarian tendency in the distribution of benefits is even more serious in state-owned enterprises, which means that the benefits received by employees cannot be related to their performance. In the face of so-called welfare, everyone has a share. Although such a welfare system does not complain, it does not effectively motivate employees, which encourages negative work habits that are not enterprising and enterprising.

Lack of flexibility in welfare settings

Some enterprises are basically old-fashioned in setting up welfare programs and have remained unchanged for many years. Apart from statutory benefits, there are few innovations. At the same time, the specific amount and proportion of existing welfare programs have been fixed for a long time, so that the welfare setting is inflexible, and the flexibility of different talents cannot be reflected in the arrangement of welfare programs.

Lack of effectiveness

To employees, benefits seem to be what companies should give themselves. For managers, they rarely think about using benefits to motivate employees, and sometimes just don't say it. For example, one company imitated the Western approach to give employees birthday cakes, and as a result, birthday employees took away the cake and it was done. The company's gifting process lacks communication with employees' thoughts and emotions, so that employees cannot feel the deeper meaning of receiving birthday cakes, so they cannot exert the effectiveness of this form of benefits.

Lack of employee participation options

The decision-making power of benefits lies in the company, and employees' passive acceptance sometimes makes the company encounter management difficulties. For example, after the reorganization of a newly established communications company, there were incidents of employees arguing over benefits distribution. Because of the different forms of distribution of benefits for the two companies before the reorganization. For example, cadres above the middle level of company W receive a monthly subsidy of 1,500 yuan in cash, and the distribution form of company L is a 1,500 yuan recharge card. After the integration, the company uses a 1,500 yuan recharge card to provide benefits. There is a difference between the recharge card and 1,500 yuan in cash, which reduces their welfare and thus makes them emotional.

Lack of awareness of the value of benefits enjoyed by employees

On the one hand, corporate managers are worried about rising welfare costs. On the other hand, most employees lack awareness of the value of the benefits they receive. Many people even mistakenly estimate that welfare expenditures account for only a small part of salary costs. Such a departure is amazing. The main reason is that the company lacks effective communication in the process of designing and implementing welfare projects, so that employees who have enjoyed and enjoyed benefits do not know what they have received or underestimate the cost of the benefits they receive.