Satisfaction Level About Fringe Benefits Essay

The survey is descriptive in nature based on structured questionnaire with 338 functionary and non-official respondents selected through proportionate stratified random sampling technique collected from seven sugar Millss in six territories of Eastern UP of India. Before application of illative statistics ( Pearson ‘s Chi-Square Test, Independent Sample t-test and Multiple Regression Analysis ) the premise of normalcy and dependability has been tested through Histogram/Boxplot and Cronbach ‘s Alpha severally.

Findingss: Satisfaction of employees with respect to Employee Provident Fund ( EPF ) , Canteen installation, Group Insurance Scheme ( GIS ) , Education installation, Maternity benefit, and Gratuity benefits have been found important different at normally accepted degree of either 5 or 1 per centum ( Pearson Chi-Square ) . Further, it has been observed that three forecasters viz. EPF, canteen, and GIS satisfaction degree contribute 56 % of the discrepancy in entire emoluments satisfaction degree ( Hierarchical Regression ) . All the three factors are found to be statistically important at 5 % degree of significance.

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Research Limitations/Implications: Merely offering fringe benefits does non do satisfaction, the sum and the outlooks of the employees are more of import factors for satisfaction. Therefore, a comparative survey can be done among the different constituents of compensation with respect to satisfaction. Finally, it is besides advisable to understand effects of periphery benefits on labour productiveness and house public presentation.

Originality/Value: Employee benefits represent around 42 per centum of entire wage axial rotation cost to the employers. It is indispensable that a plan be based on specific aims that are compatible with organisational doctrine and policies every bit good as low-cost. The survey addressed to Indian Sugar Federation, Wages Board, and Mill Owners for understanding the preparation of suited employee benefits plan.

Keywords: Fringe benefits, Employees satisfaction, Perceptions, Sugar Millss, Private and Cooperative Sector, Compensation and U.P.

An Appraisal of Employees Satisfaction degree about Fringe Benefits: Evidence from Sugar Mills in eastern U.P.

1- Introduction: Fringe benefit is a major portion of compensation which helps in motivation, pulling and retaining the employees and bettering organisational effectivity. The periphery benefits are non- pay benefits offered by the employer to the employees ; they represent a significant cost disbursal to the employer and a cost economy to the employee. The money value of fringe benefits may normally account for about 40 per centum if non more of the employee wage in certain big organisations ( Jain, 2008 ) . Fringe benefits and employee public assistance plan have been in trend in industry since long.

Some of them like provident fund and tip have become statutory while others refering lodging, instruction, medical benefits, accident alleviation, wellness and life insurance, or facilitation in public presentation of occupations like uniform, canteens, diversion etc. are non statutory yet ( Bhola, 2008, Prasad, 2005 ) . Statutory benefits refer to those periphery benefits which an organisation is lawfully required to supply to its employees, but voluntary benefits pertain to those periphery benefits which an organisation provides of its ain free will and will ( Dev, 2009 ) .

Harmonizing to Werther & A ; Davis ( 1996 ) “ Fringe benefits embrace a scope of benefits and services that employee does have as portion of their entire compensation bundle. Benefits and services, nevertheless, are indirect compensation because they are normally extended as a status of employment and non straight related to public presentation ” . Cockmar ( 1975 ) said that, “ Fringe benefits are those benefits which are provided by an employer to or for the benefit of an employee and which are non in the signifier of pay, salary and clip related payments ” .

2- Literature Review: A reappraisal of the literature in this context reveals that a figure of research workers have emphasized the importance of factors impacting occupation satisfaction. Job satisfaction involves several different domains such as satisfaction with wage, publicity chances, periphery benefits, occupation security and the importance/challenge of the occupation. ( Nguyen, Taylor, & A ; Bradley, 2003 ) .

Srivastava ( 1995 ) has made an thorough survey of labour productiveness. The survey focused on what inducements should be provided to workers to actuate them to increase their productiveness and therefore increasing the per capita end product. A elaborate analysis has been made on labour productiveness and inducements consequence on cost economic system. Associating of inducements to productiveness has besides been discussed. But the survey does non mentioned about the scientific finding methods and incentive rates.

Rabindranath ( 1976 ) makes an question in to the pay construction in a few industrial units of Poona. The factors which are impacting the pay construction and employees benefits are the focal points harmonizing to him. The survey brings out the pay derived functions between different classs of workers in comparable businesss among different industries. The most of import portion of the survey is a clinical diagnosing of irrational elements in pay construction and employees benefits. The survey pin-points the demand for the standardisation of the pay construction and employees benefits maintaining productiveness as the chief factor. Important factors like capacity of the industry, demands of the workers and their bargaining capacity have been indirectly discussed.

Gupta & A ; Joshi ( 2007 ) have the position that compensation refers to logic wage in the signifier of rewards and wages. It besides includes inducements programs, periphery benefits and executive wage. In his position wages and fringe benefits paid to highest determination makes in organisations are skyrocketing and this sudden jet is a consequence of liberalisation and globalisation of the economic system.

3. Statement of the Problem: Periphery benefits constitute an indirect signifier of compensation intended to better the quality of work lives and the personal lives of employees. Employee benefits represent about 42 per centum of entire paysheet costs to employees ( Snell et al. , 2012 ) . In return, employers by and large expect employees to be supportive of the organisation and to be productive. Since employees have come to anticipate a full benefits package the motivational value of these benefits depends on how the benefits plan is designed and communicated. Since merely satisfied employees can lend on labour productiveness and house public presentation, hence it is an enterprise by the research workers to understand the undermentioned important issues for finding sound employee benefits plan:

Does the periphery benefits programme affect the degree of satisfaction of the employees?

How do the different constituents of periphery benefits programme affect the entire emoluments satisfaction degree?

Is there any difference between predominating employee benefits programme in private and concerted sector? and

How can an effectual periphery benefits policy be designed?

3.1 Objective of the Survey: The present survey has been undertaken to analyse the satisfaction degree towards fringe benefits among employees of sugar Millss in Eastern U.P. The sub-objectives of the survey are as follows:

To place the fluctuation in satisfaction degree in fringe benefits among the employees in private and concerted sugar Millss ;

To place the possible forecasters ( constituents of fringe benefits ) of employees entire emoluments satisfaction degree ; and

To propose appropriate steps for bettering periphery benefits programme for sugar Millss.

3.2 Hypothesiss for the Study: On the footing of aims and extended literature reexamine the undermentioned research hypotheses have been formulated:

Holmium: There is no important difference between the satisfaction degree of employees in private and concerted sugar Millss with respect to different elements of periphery benefits ;

Holmium: Elementss of periphery benefits contribute every bit in employees ‘ entire emoluments satisfaction degree.

4. Significance of the Study: Sugar industry is the major agro based industry in Uttar Pradesh. The industry covers about 7.5 % of entire rural population and provides employment to more than 5 lakh rural people ( Devaraja, 2009 ) .The industry has many job and troubles in the selling of sugar, non handiness of sugar cane and high cost of sugar cane etc. Besides, that the industry has besides deficit of proficient accomplishment, modern engineering, proper and effectual authorities aid. The most of import jobs viz. rewards and salary disposal including fringe benefits and publicity caused a batch of strain on the relationship between employers and employees.

Like basic wage programs, the major aim for most organisational periphery compensation programme is to pull, retain, and motivate qualified, competent employees. Research supports the importance of periphery benefits in agro based industry ( Miethe, 1999 ) . Because many of the benefits represent a fixed cost, direction must pay close attending in presuming more benefit disbursals. Increasingly, employers are necessitating employees to pay portion of the cost of certain benefits. Employers besides shop for benefit services that are competitively priced ( Richard, 2003 ) . Hence the survey would be really utile in understanding the preparation of suited periphery benefit policies by the Sugar Federation, Wage Board and Mill Owners, so that overall satisfaction degree of employees can be improved.

5. Research Design: It is the program and construction of overall research work. It presents the operational program, how the research work has been carried out. In short, it constitutes the design for the aggregation, measuring and analysis of informations ( Cooper, 2010 ) .

5.1: Scope of the Survey: The present survey is carried out in sugar Millss of five territories ( Mau, Sultanpur, Deoria, Kushinagar and Maharajganj ) of eastern UP merely. The existence of the survey includes all those employees who were working in private and concerted sugar Millss of eastern U.P. The whole population comprises 2160 permanent employees both official and non-official.as on 31st October 2010. Nominal, ranking and interval graduated table have been used as per the suitableness of the informations. For citing manner the American Psychological Association ( 6th Edition ) have been used. Limited elements of periphery benefits have been considered in the survey.

5.2: Sampling Design: Sampling frame comprised of those working employees of sugar Millss who has holding at least two old ages of experience in the same organisation. Stratified random sampling has been used for finding the representation from each stratum ( official and non-official employees ) . 7 sugar Millss of eastern U.P have been selected indiscriminately out of 35 sugar Millss. Of these 5 are from private sector and 2 from concerted sector. Entire 420 questionnaires have been straight distributed among the employees of seven sugar Millss. 374 questionnaires have been collected and found that 344 questionnaires are valid. Finally, 338 questionnaires have been used on the footing of Yamane ( 1967 ) sample adequateness expression for the intent of the survey.

Sample Adequacy Formula: n= N/ ( 1+N*e2 ) , Whereas n=2160/ ( 1+2160*.052 ) = 337.5
Where n=Minimum Sample Size, N= Population Size and e=level of Precision ( 5 % )

Table 1: Distribution of Sample Size
Sector
Official
( Managerial Staffs )

Non-Officials
( Technicians & A ; Blue Collar Employees )

Entire
Concerted

5- Analysis and Interpretation: Since the survey is strictly based on primary informations collected through structured questionnaire holding 25 statements and several statistical tools have been used viz. Pearson ‘s Chi-Square Test, Independent Sample t-test and Multiple Regression Analysis etc as per suitableness of informations. Before statistical analysis normalcy of informations have been checked through histogram and box secret plan.

5.1- Reliability Analysis: Dependability analysis is used to prove the internal consistence and cogency of the information gathered. Lone elements with alpha value of 0.70 or above are to be considered ( Nunnally, 1978 ) . For all the variables of the questionnaire, alpha value is found 0.925 which shows the high internal consistence as per the graduated table given by Freitas and Rodrigues, 2005.

Table 2: Dependability Statisticss
Cronbach ‘s Alpha
No. of Items
Variables
.925
8
Satisfaction with E.P.F. , Canteen Facilities, G.I.S, Medical and Education installations, Gratuity, Pension and Accident Relief Benefits.

Beginning: Primary study

A sum-up of the demographic profile of the respondents is presented in the above Table: 3 shows that the maximal 41.7 per centum were between the age group of 51-60 old ages out of which 35.7 per centum from private sector and 55.3 per centum from concerted sector severally. 39.9 per centum and 18.3 per centum of respondents were selected between the age group 41-50 old ages and a‰¤40 old ages. Male and female constituted 98.3 per centum and 1.7 per centum in private sector and 99.0 per centum and 1.0 per centum in concerted sector severally. Education-wise, it was seeable that the bulk of the employees ( 84.5 per centum ) were held general instruction, but in private sector, proficient educated employees were higher than that of concerted sector employees. Equally far as employees ‘ experience is concerned, it is found that the 50.6 per centum employees are holding experience between 21-30 old ages.

Whereas 66.8 and 66.2 per centum non-official employees are selected from private and concerted sector severally. The t-test consequence ( with equal discrepancy assumed ) where t statistics of 4.79 and 3.17 with 366 grades of freedom the corresponding two- tailed P-value is 0.000 which is less than 0.01. Therefore we can reject the void hypothesis at 1 % significance degree, which means that the mean ages and experience of the two groups are statistically important given each other. The Pearson ‘s chi-square analysis has been done to prove the association between natures of organisation and gender & A ; working position of employees of two sectors and found that there is an undistinguished statistical difference. However, instruction makings of private and concerted sector employees are statistically important.

5.3- Fringe Benefits Analysis: Table 4, shows the distribution of respondents harmonizing to acquiring Employee Provident Fund ( EPF ) , Canteen installation, Group Insurance Scheme ( GIS ) , Medical installation, Education installation, Maternity benefit, Gratuity and Accident alleviation benefits.

The above tabular array reveals that the Employee Provident Fund ( EPF ) , Medical installation, Maternity benefit and Gratuity benefits is about equally available installation to the employees in both the sectors. But, in private sector, 60 per centum employees have asserted that they were basking to canteen installation, while in concerted sector, 63.1 per centum employees are dissatisfied with canteen installation. 40.4 per centum and 54.9 per centum employees are dissatisfied with group insurance strategy and instruction installation severally in private sector. In other custodies, 98.1 per centum employees are satisfied with group insurance strategy but 85.4 per centum employees are dissatisfied with instruction installation in concerted sector.

About 80 per centum employees were satisfied with accident alleviation benefits in private sector but in concerted sector, 92.2 per centum employees were satisfied with accident alleviation benefits. The Pearson ‘s chi-square analysis has been done to prove the association between natures of organisation and employees perceptual experiences with respect to Employee Provident Fund ( EPF ) , Medical installation, Maternity benefit and Gratuity benefits and found that there is an undistinguished statistical difference. But Canteen installation, Group Insurance Scheme ( GIS ) , Education installation and Accident alleviation benefits have been significantly differencing at normally accepted degree of either 5 or 1 per centum.

5.4- Analysis of Employee ‘s Satisfaction towards Fringe Benefits: The Table: 5 exhibits the employee ‘s satisfaction degree sing the benefits of Employee Provident Fund ( EPF ) , Canteen installation, Group Insurance Scheme ( GIS ) , Medical installation, Education installation, Maternity benefit, Gratuity and Accident alleviation benefits. In private sector, 25.3 per centum of respondents are extremely satisfied with the benefits of EPF, while 21.7 per centum are less satisfied and 53 per centum employees are reasonably satisfied with the benefits of EPF. In concerted sector, 36.3 per centum employees are to the full satisfied with the fruits of EPF ; while 45.1 per centum were less satisfied and 18.6 per centum respondents are reasonably satisfied.

Overall, 28.6 per centum respondents are to the full satisfied ; whereas 28.9 per centum employees are less satisfied and 42.5 per centum employees have said that they are reasonably satisfied with the benefits of employee provident fund. In private sector, 48.2 per centum of respondents are reasonably satisfied with the canteen installation ; while, half of the respondents were less satisfied with the canteen installation in concerted sector. Merely 15 percent employees of private sector are to the full satisfied with the fruits of group insurance strategy, while 24.8 per centum employees were extremely satisfied with the benefits of group insurance strategy in concerted sector. Overall, 1.8 per centum respondents are to the full satisfied, whereas 45.6 per centum employees were less satisfied and 52.7 per centum employees have said that they are reasonably satisfied with the benefits of medical installation. In private sector, 81.2 per centum and 58.3 per centum of the respondents are reasonably satisfied.

But overall employees in concerted are less satisfied with the instruction installation and pregnancy benefit severally. 37.6 per centum employees in concerted were to the full satisfied ; while, 63 per centum of employees were reasonably satisfied in private sector with the tip benefit. Overall, 16.2 per centum employees were to the full satisfied, whereas 52.4 per centum employees are less satisfied and 31.4 per centum employees are reasonably satisfied with the accident alleviation benefits.

The Pearson ‘s chi-square analysis has been done to prove the association between nature of organisation and employees satisfaction with respect to Employee Provident Fund ( EPF ) , Canteen installation, Group Insurance Scheme ( GIS ) , Education installation, Maternity benefit, and Gratuity benefits and found that there is statistically important at recognized degree of either 5 per centum or 1 per centum.

5.5-Hierarchical Regression Analysis: The consequences of hierarchal arrested development analysis such as cumulative R2, Adjusted R Square ( AR2 ) and alteration statistics have been given in Table: 5. An effort was made to happen out whether the six different variables would be possible forecasters of entire emoluments satisfaction. Under alteration statistics, the first column leveled R square alteration gives alteration in the value of R square between the theoretical accounts. The last column labeled Sig. F alteration tests whether there is a important betterment in the theoretical accounts as we introduce extra IVs.

We can see that the R Square Change value in row two is.127. This means that inclusion of canteen satisfaction degree after EPF helps in explicating the extra 12.7 % discrepancy in entire emoluments satisfaction. The P value for proving significance of matching F alteration is.008, important at 5 % label of significance. This means that inclusion of canteen satisfaction significantly improves the theoretical account to foretell overall emoluments satisfaction degree. Whereas theoretical account 4, 5 and 6 did non improved after inclusion of Medical satisfaction degree ; education satisfaction degree, Accident alleviation satisfaction degree as their corresponding F- Change insignificant at 5 % degree of significance.

Forecasters: a: EPF Satisfaction Level ;

Forecasters: B: EPF satisfaction degree and canteen satisfaction degree ;

Forecasters: degree Celsius: EPF satisfaction degree, canteen satisfaction degree, GIS satisfaction degree ;

Forecasters: vitamin D: EPF satisfaction degree ; canteen satisfaction degree, GIS satisfaction degree, Medical satisfaction degree ;

Forecasters: vitamin E: EPF satisfaction degree ; canteen satisfaction degree, GIS satisfaction degree, Medical satisfaction degree ; education satisfaction degree ; and

Forecasters: degree Fahrenheit: EPF satisfaction degree ; canteen satisfaction degree, GIS satisfaction degree, Medical satisfaction degree ; education satisfaction degree, Accident alleviation satisfaction degree.

Dependent Variable: Entire emoluments satisfaction
6- Findingss

6.1: The bulk of employees in private sector are younger than concerted sector who are in the age group of less than 40 old ages. Representations of female respondents in both the sectors are really less. Further, it is apparent that the bulk of the employees with proficient cognition are more in private sector in comparing to cooperative sector. Equally far as employees ‘ experience is concerned, bulk of the respondents in the co-op sector are holding experience runing from 21 to 30 old ages. It indicates that the employees in concerted sector have longer fond regard with their workplace. The working position of the employees, viz. official and non-official of both the sectors is found same.

6.2: Entitlement to Employees Provident Fund ( EPF ) , Medical installation, Maternity benefit, and Gratuity benefits does non change among the employees in both the sectors. But satisfaction degree with these installations among the employees varies significantly. Employees in private sector are more satisfied in comparing to cooperative sector employees. Canteen installation, Group Insurance Scheme, Education installation and Accident alleviation benefits significantly varies among the employees in both the sectors. However, degrees of satisfaction in regard to group insurance strategy, concerted sector employees are extremely satisfied in comparing to private sector employees. But, employees in private sector are more satisfied in regard to instruction installation and canteen installation. However, satisfaction degree in the employees of private and concerted sector about similar in regard to accident alleviation benefits.

6.3: It has been observed that three forecasters viz. EPF satisfaction degree, canteen satisfaction degree, and GIS satisfaction degree contribute 56 % of the discrepancy in entire emoluments satisfaction degree. Therefore the consequences indicate that the above three variables are really important in foretelling the overall emoluments satisfaction. All the three factors are found to be statistically important at 5 % degree of significance.

7- Decisions and Recommendations for Future Research: The comparing has been done in private and concerted sector employees with respect to fringe benefits. Besides that a comparing besides has been done based on five demographic variables viz. age, gender, experience, making and working position with respect to satisfaction degree with fringe benefits. On the footing of comprehensive comparing, it is found that the nature of organisation and employees satisfaction towards fringe benefits statistically important. This means, concerted sector employees are less satisfied in comparing to private sector employees. Employees in private sector are technically sound in comparing to cooperative sector. Through hierarchal arrested development analysis it is statistically proved that all constituents are non much effectual. Therefore direction must see the undermentioned two factors while planing a sound benefits plan:

It is indispensable that a plan be based on specific aims that are compatible with organisational doctrine and policies every bit good as low-cost ; and

Target of import employees single need while advancing compensation construction.

Merely offering fringe benefits does non do satisfaction, the sum and the outlooks of the employees are more of import factors for satisfaction. Therefore, a comparative survey can be done among the different constituents of compensation with respect to satisfaction. Finally, it is besides advisable to understand effects of periphery benefits on labour productiveness and house public presentation.