The management of employee benefits for a diverse workforce in a South African tertiary institution

Abstract

The important role played by tertiary institutions in South Africa with regard to the general development of the country, cannot be disputed. To ensure that tertiary institutions provide education of high quality, competent employees are needed. These employees however have to be paid competitive salary packages. Employee benefits, which form 40 percent of an employer's payroll costs, constitute an important cost component and need to be scrutinised more closely with the aim of managing it as efficiently and effectively as possible. To achieve this goal the primary purpose of this research is thus to determine to what extent the present employee benefits provided by tertiary institutions in South Africa, address the diverse needs of employees. From the empirical study it is clear that employees' awareness of benefits offered and their divergent preferences, necessitates a more flexible approach to the management of benefits. A flexible benefit system would thus be an option.