Employment benefits covers how employees are rewarded in accordance with their value to an organisation. It is appropriate to consider both financial and non-financial rewards and embrace the strategies, policies, structures and processes used to develop and maintain reward systems. The ways in which people are valued can make a considerable impact on the effectiveness of the organisation and is at the heart of the employment relationship.
The aim of employee reward policies and practices is to help attract, retain and motivate high-quality people. Getting it wrong can have a significant negative effect on the motivation, commitment and morale of employees and ultimately impact on your labour turnover costs and recruitment costs.