(Solution) CIPD Middle East (AC2.3) Explain the merits of different types of benefits offered by organisations

Solution

Benefit definition

This is defined as “non-wage type of compensation which is provided to staff other than their legalised basic rewards” (CIPD, 2024f). The distinction with the rewards is that this enhances financial wellbeing of the employees, satisfied and committing themselves.

The examples of benefits in an organisation such as Eco-Insulate include the cover for healthcare, pensions and professional growth. The outcome of this would include the organisation managing their turnover scope through granting best benefits as today they do not have incentives therefore reduced turnover.

Also, the rewards are noted to be informing performance of the employees which is contrary to benefits which guide how they progress positively in their organisation holistically (Emmanuel & Nwuzor, 2021).

Merits of different Benefits

Example 1: Privatised Medical Insurance Cover– For Eco-Insulate, this type of benefit promotes employee’s wellbeing and reduce how they are absent. The merits include an access of substantial quality cover for their health/life enhance timely management of their issues therefore performing in optimum and engaged. Also, according to Zanardi and Brusa (2023), benefits are relevant for attracting highly qualified staff lowering costs incurred. This is by management of sick leave which affect their efficiency.

Example 2: Profit-Sharing Schemes-..

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