Fringe Benefits Overview
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Fringe Benefits Overview

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Questions and Answers

Which of the following is not considered a fringe benefit?

  • Medical Aid Fund
  • Pension Fund
  • Salary Increase (correct)
  • Funeral Benefits
  • Fringe benefits can lead to increased employee satisfaction.

    True

    What is one disadvantage of fringe benefits?

    Additional costs

    The _____ promotes resolution of labour disputes.

    <p>LRA</p> Signup and view all the answers

    Match the following Acts with their implications:

    <p>LRA = Promotes resolution of labour disputes EEA = Ensures affirmative action promotes diversity SDA = Ensures training is secured</p> Signup and view all the answers

    What is one advantage of external recruitment?

    <p>Large pool of candidates</p> Signup and view all the answers

    External recruitment can help minimize unhappiness and conflicts within an organization.

    <p>True</p> Signup and view all the answers

    List two methods of external recruitment.

    <p>Billboards, electronic media</p> Signup and view all the answers

    External recruitment may cause ______ among current employees.

    <p>resentment</p> Signup and view all the answers

    Match the following parts of the selection procedure with their descriptions:

    <p>Receive documentation = Sorting applicants' materials based on set criteria Conduct screening = Evaluating candidates' basic qualifications Check references = Verifying previous employment and character Conduct interviews = Engaging with candidates to assess their fit</p> Signup and view all the answers

    What is one of the primary purposes of an interview?

    <p>To determine a candidate's suitability for the job</p> Signup and view all the answers

    An employer must hold interviews to legally terminate an employee.

    <p>False</p> Signup and view all the answers

    What should an interviewee do during an interview to show confidence?

    <p>Make eye contact</p> Signup and view all the answers

    The purpose of an employment contract is to outline the agreement between the ________ and the employer.

    <p>employee</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Resignation = Occurs when an employee chooses to leave voluntarily. Retrenchment = Employer lays off employees due to insolvency. Interviewer = Person conducting the interview. Interviewee = Candidate being interviewed.</p> Signup and view all the answers

    What is one of the main goals of the induction process?

    <p>To increase the quality of performance</p> Signup and view all the answers

    The placement process involves assigning specific jobs to candidates.

    <p>True</p> Signup and view all the answers

    What does BCEA stand for?

    <p>Basic Conditions of Employment Act</p> Signup and view all the answers

    During induction, employees are introduced to the business's ______.

    <p>processes</p> Signup and view all the answers

    Match the following induction activities with their purpose:

    <p>Introductions = To make new employees feel welcome Overview of the business = To provide context about the organization's operations Safety regulations = To ensure compliance and employee safety Tour of the premises = To familiarize employees with the work environment</p> Signup and view all the answers

    What does Job Analysis primarily help with?

    <p>Finding suitable candidates for a position</p> Signup and view all the answers

    Job Specification includes information about the acceptable personal qualities for a candidate.

    <p>True</p> Signup and view all the answers

    List two methods of internal recruitment.

    <p>Recommendations, Office notice boards</p> Signup and view all the answers

    The first step in the recruitment procedure is to identify ________ needs.

    <p>recruitment</p> Signup and view all the answers

    Match the following components with their descriptions:

    <p>Job Description = Describes duties of a job Job Specification = Describes acceptable personal qualities Recruitment Procedure = Identify recruitment needs and choose method of recruitment Internal Recruitment = Use of office notice boards and referrals</p> Signup and view all the answers

    Study Notes

    Fringe Benefits

    • Medical Aid Fund: Covers medical expenses for employees and their families.
    • Pension Fund: Provides employees with a retirement income after they stop working.
    • Provident Fund: A savings scheme that employees can contribute to for retirement.
    • Funeral Benefits: Provides financial assistance to employees for funeral expenses when a family member passes away.

    Advantages of Fringe Benefits

    • Reduces employee turnover: Employees are more likely to stay with a company that offers good benefits.
    • Increases employee satisfaction: Benefits make employees feel valued and appreciated.

    Disadvantages of Fringe Benefits

    • Creates conflict: Employees may feel that benefits are unfair or that they are not receiving enough.
    • Additional costs: Benefits can be expensive for employers to provide.

    Implications of the Labour Relations Act (LRA)

    • Promotes resolution of labour disputes: Provides a framework for resolving disputes between employers and employees.
    • Protects rights of employees: Ensures employees have the right to unionize, bargain collectively, and to be protected from unfair dismissal.

    Implications of the Employment Equity Act (EEA)

    • Equal pay for work of equal value: Ensures that employees are paid the same for doing the same job, regardless of their race, gender, or other protected characteristics.
    • Ensures affirmative action promotes diversity: Requires employers to take steps to promote diversity in their workforce.

    Implications of the Skills Development Act (SDA)

    • Ensures training is secured: Requires employers to invest in training and skills development programs for their employees.
    • Contributes to 1010: This is a government initiative aimed at improving the skills of South African workers

    Purpose of an Interview

    • To determine a candidate's suitability for the job.
    • To observe the strengths and weaknesses of candidates.

    Role of the Interviewer

    • Allocate equal time to all candidates.
    • Introduce members of the panel to the candidates.
    • Make the interviewees feel at ease.
    • Explain the purpose of the interview.

    Role of the Interviewee

    • Greet and be friendly.
    • Listen to questions and respond thoughtfully.
    • Make eye contact.
    • Show confidence.

    Employment Contract

    • An agreement between an employee and employer that outlines the terms of employment.

    Aspects to be Included in an Employment Contract:

    • Personal details of the employee.
    • Job description.
    • Job specifications (essential skills and qualifications).
    • Period of contract (permanent or temporary).

    Resignation

    • Occurs when an employee chooses to leave their job voluntarily.

    Retrenchment

    • Occurs when an employer lays off employees due to a decline in business or financial difficulties.

    External Recruitment

    • Seeking candidates from outside the organization to fill vacant positions.

    Advantages of External Recruitment:

    • Quicker to fill up positions: Access to a larger pool of suitable candidates.
    • Provides opportunities for career advancement within the business: New ideas and talent can be introduced, benefiting the organization.

    Disadvantages of External Recruitment:

    • Could cause resentment: Internal candidates may feel slighted if they weren’t given the opportunity.
    • Closes the door for some employees: Prevents internal growth opportunities and employee development.

    External Recruitment Methods:

    • Billboards
    • Printed media: (Newspapers, magazines, posters).
    • Television.
    • Electronic media (online job boards, social media platforms).
    • Walk-ins (candidates apply in person).

    Advantages of External Recruitment:

    • Large pool of candidates to choose from: Increases the possibility of finding a suitable candidate.
    • Minimizes unhappiness/conflicts: Avoids potential conflicts related to internal promotions.

    Disadvantages of External Recruitment:

    • Expensive advertising: Costs associated with using different media platforms to advertise.
    • Takes a long time: The process of finding and interviewing suitable candidates can be extensive.

    Selection Procedure

    • A systematic process used to identify the best candidate for a vacant position.
    • Receive documentation: Gather applications and supporting documents.
    • Sort according to criteria: Organize applications based on job requirements.
    • Evaluate CVs: Assess qualifications, experience, and skills on CVs.
    • Create shortlists: Select top candidates based on qualifications.
    • Conduct screening: Pre-screening interviews to further assess candidates.
    • Check references: Verify information provided by candidates with previous employers.
    • Test candidates: Use skills assessments, psychometric tests, or aptitude tests.
    • Conduct interviews: Meet shortlisted candidates for in-depth discussions.
    • Choose selected candidates: Make the final decision based on all the information gathered.

    Recruitment

    • The process used by businesses to find suitable candidates for open positions.
    • Identifies vacancies within the business.
    • Evaluates candidates to find the best fit.

    Job Analysis

    • A tool used by the HR department to gather information about a job and identify the right candidate.

    Job Analysis Components:

    • Job Description: Defines the duties, responsibilities, and tasks associated with the job.
    • Job Specification: Outlines the essential skills, qualifications, and personal characteristics required for the job.

    Recruitment Procedure

    • A structured process for finding and selecting qualified candidates.
    • Identify recruitment needs: Determine the specific positions that need to be filled.
    • Indicate specific requirements: Define clear expectations for the ideal candidate.
    • Choose method of recruitment: Select suitable recruitment strategies (internal or external).
    • Advertise vacancies: Create job postings that attract qualified candidates.
    • Prepare advertisements: Write engaging descriptions that highlight key responsibilities and benefits.
    • Place advertisements in appropriate media: Choose suitable platforms to reach the target audience.

    Internal Recruitment

    • Sourcing candidates from existing employees within the company.

    Internal Recruitment Methods:

    • Look for MOUs: Review existing Memoranda of Understanding for potential internal candidates.
    • Office notice boards: Post internal job openings on company notice boards.
    • Recommendations: Seek recommendations from current employees for suitable candidates.
    • Referrals/Circulars: Send internal circulars announcing job opportunities.

    Employee Induction and Placement

    • Processes for welcoming and integrating new employees into the organization.

    Induction

    • Process to introduce new employees to the company.
    • Introduction to the business: Explain the company's history, values, and goals.
    • Welcome new employees: Make them feel comfortable and part of the team.
    • Overview of the business: Provide information about the company's structure, products, and services.
    • Safety regulations and rules: Explain important safety measures and company policies.
    • Conditions of employment: Outline employment terms, benefits, and responsibilities.
    • A tour of the premises: Show new employees the work environment and key areas.

    Benefits of Induction

    • Increases the quality of performance: Helps new employees understand their roles and responsibilities.
    • Allows new employees to score with efficiency: Provides essential information and resources for success.
    • Ensures they understand rules and restrictions: Reduces errors and promotes safety.

    Placement

    • Assigning new employees to specific roles and departments based on their skills and experience.

    Salary Determination

    • The process of establishing appropriate compensation for employees.
    • Salaries are determined according to the work performed: Jobs with higher levels of responsibility or required skills are generally paid more.
    • Employees are compensated based on the hours they work.

    Other Considerations

    • BCEA: The Basic Conditions of Employment Act requires employers to provide clear and fair employment contracts specifying working conditions, wages, and legal rights.

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    Description

    This quiz covers the concept of fringe benefits, including types such as medical aid, pension, provident, and funeral benefits. It discusses the advantages and disadvantages these benefits bring to employees and employers, as well as the implications of the Labour Relations Act. Test your knowledge on how these elements influence employee satisfaction and business operations.

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