An Appraisal of the Effective Role of Fringe Benefits on Employee Performance in an Organization
- To find out the different types of fringe benefits
- To examine the effects of fringe benefits on employee performance in some hotels the Buea municipality.
- To assess the challenges associated with providing fringe benefits to employees of hotels in Buea.
- To investigate how fringe benefits can be used to improve employee performance in hotels.
REVIEWED OF RELATED LITERATURE
CONCEPT OF FRINGE BENEFITS
Fringe benefits is seen as any form of compensation provided by the organization, other than wages or salaries that are paid for in whole or in part by the employer . , define fringe benefits as that part of the total reward package provided to the employee. Fringe benefits focus on maintaining or improving the quality of life for employees and providing a level of protection and financial security for workers and for their family members. , asserts that Fringe benefits are supplements to wages received by workers at a cost to the employers. The term encompasses a number of benefits-paid vacation, pension, health insurance plans, etc. which usually add up to something more than a „fringe‟ and is sometimes applied to a practice that may constitute a dubious benefit for workers.” According to , the major objective of fringe benefits is to attract qualified, competent employees. An employer that provides a more attractive benefits package often enjoys an advantage over other employers in hiring and retaining qualified employees when the competing firms offered similar base pay. In fact, such benefits may create “Golden Handcuffs” making employees more reticent to move to other employers. Some common examples more retirement or pension plans, medical and dental insurance, education reimbursement, time off, paid vacation and use of company car.
Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perqs or pecks) 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 degree. Examples of these benefits include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare, 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 perqs (also perks) is often used colloquially to refer to those benefits of a more disciplinary nature. Often, perqs are given to employees who are doing notably well and/or have seniority. Common perqs 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. Bernard in Stoner (1995) accords due recognition to the needs of workers saying that “the ultimate test or organizational success is its ability to create values sufficient to compensate for the burden imposed upon resources contributed”. Bernard (2002) looks at workers in an organized endeavour, putting in time and effort for personal, economic and non-economic satisfaction. The question here is what strategies can be used to motivate workers. The following strategies are
Wages and Conditions of Service To use salaries as a motivator effectively, personnel managers must consider four major components of a salary structures. These are the job rate, which relates to the importance the organization attaches to each job; payment, which encourages workers or groups by rewarding them according to their performance; personal or special allowances, associated with factors such as scarcity of particular skills or certain categories of information professionals or librarians, or with long service; and fringe benefits such as holidays with pay, pensions, and so on. It is also important to ensure that the prevailing pay in other library or information establishments is taken into consideration in determining the pay structure of their organization. (Olajide, 2000).
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine An appraisal of the effective role of fringe benefits on employee performance in an organization. Selected hotels in Beau forms the population of the study.
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.]
SUMMARY, CONCLUSION AND RECOMMENDATION
It is important to ascertain that the objective of this study was to ascertain an appraisal of the effective role of fringe benefits on employee performance in an organization. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing an appraisal of the effective role of fringe benefits on employee performance in an organization
This study was on an appraisal of the effective role of fringe benefits on employee performance in an organization. Three objectives were raised which included; To find out the different types of fringe benefits, to examine the effects of fringe benefits on employee performance in some hotels the Buea municipality, to assess the challenges associated with providing fringe benefits to employees of hotels in Buea and to investigate how fringe benefits can be used to improve employee performance in hotels. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected hotels in Beau. Hypothesis was tested using Chi-Square statistical tool (SPSS).
The fringe benefits at hotel are determined by many critical factors including income, level of staff contribution, economic situation, industry standard, competitor’s types of benefits and government regulations. This confirms the stance of hotel regarding the cost associated with fringe benefits. “it is easy to observe that employee benefits represent a substantial cost to any organization. Yet, they are the vital and most motivating factor of the total compensation package. Although, they are referred to as fringe benefits they have come to be regarded as a crucial part of the workers earning. Thus, it requires better management on the part of the organization. This is because they are costly and once they are granted to the workers, they cannot be withdrawn without violent resistance and very dangerous consequence
The management of hotel. should strive to team up with the managers of other competing firms through trade associations or employers’ associations in order to harmonies the various fringe benefits policies in place in their respective organizations such that there’s an existence of a uniform fringe staff migration within the same industry and will further enhance the commitment to their respective organizations.
- The management of hotel. should adopt a proactive approach to the adjustment of fringe benefits in accordance to the prevailing economic conditions at every given point in time. This will ensure the interest of the workers are well covered and will discourage workers from engaging in any form of industrial conflict through the union as a result of management’s unfair implementation of fringe benefits.
- The management of hotel. should adopt an innovative approach to the provision of fringe benefits for their high performing employees. Such innovative approach can be the provision of fringe benefits on the form of employee training and development abroad. This will not only improve the productivity of such an employee, but will also ensure the retention of such an employee for a reasonably long period of time which will be legally documented and signed prior to the implementation of the innovative fringe benefit.
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