Meaning of Benefit: General Understanding and According to Experts, Along with Types - Determining Factors

Kapanlagi.com - The word benefit is certainly not a foreign word in this era. Yes, the meaning of benefit itself is something that can provide welfare. This term can be said as a benefit, advantage, compensation for something that we may do or work on.

In addition to knowing the meaning of benefit which is a benefit, KLovers can also find out what are the types of benefits. And what can be a determining factor for someone to get a benefit. This is certainly very important to know and understand.

Well, for that reason, from various sources, here is the general meaning of benefit and according to experts. Along with the types of benefits and also the determining factors. Let's check it out KLovers.

1. Understanding Benefit

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As previously explained, the meaning of benefit itself is something that can provide well-being or an advantage. The word benefit itself comes from the English language which means advantage. In addition, according to KBBI, the meaning of benefit is something that has utility or benefit or the meaning of benefit is part of profit or gain.

As in the Merriam Webster dictionary, the meaning of benefit is tangible financial assistance during sickness, old age, unemployment benefits, and disability benefits. In another interpretation, the meaning of benefit is compensation. KBBI also explains that compensation or benefit is a form of compensation.

An example of benefit is a reward in the form of money or non-money (nature), given to employees in a company or organization. This benefit can be received directly or indirectly by employees from their superiors or colleagues. In addition, benefits can also be annual rewards, regular rewards, or rewards within a certain period of time.

2. Understanding Benefit According to Experts

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Not only in general, there is also the meaning of benefit according to experts. Yes, although experts have their own meanings and understandings of the meaning of benefit, generally they have the same meaning or significance. And the following is the meaning of benefit according to experts:

1. Dessler

The meaning of benefit according to Dessler is any form of payment or reward given to employees arising from their employment.

2. Malayu S.P. Hasibuan

The meaning of Benefit according to Malayu S.P. Hasibuan is all income in the form of money, direct or indirect goods received by employees as compensation for services provided to the company.

3. Flippo

The meaning of benefit according to Flippo is the price for services received or given by others for the benefit of an individual or legal entity.

3. Types of Benefits

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Not only knowing the meaning of benefits, KLovers can also know the types of benefits themselves.There are 3 types of benefits that KLovers can know and understand.Here are the types of benefits along with their examples:

1. Direct Financial Benefits

The first type of benefit is direct benefit.The meaning of this direct benefit is in the form of cash and not in the form of goods.Usually, direct benefits given by companies have examples such as salaries, incentives, or bonuses.And here are other examples of direct benefits:

- Salary

- Fixed allowance

- Variable allowance

- Religious holiday allowance

- Annual bonus or Hari Raya

- Commission

- Profit sharing

- And other taxable income subject to PPh 21

2. Indirect Benefits

Then the meaning of indirect benefits is the company's payments received by employees indirectly in the form of benefits and conveniences enjoyed by employees.Such as:

- BPJS Health

- BPJS Employment

- Pension savings

- Company vehicle facilities

- Company housing

- Office child care facilities

- Free lunch

- Training

- Consultation

3.Non-Financial Benefits

And finally, there is the meaning of non-financial benefits which are company rewards that have nothing to do with money.Such as:

- Opportunity to get more annual leave

- 4 months maternity leave

- 1 month paternity leave

- Flexible working hours

- Work from home 2 days a week

- Comfortable office atmosphere

- Clear career path

4. Determining Factors of Benefits

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So, what about the determining factors of benefits? Well, to obtain a benefit there must be a factor. And this factor can be known as one of the determinants to obtain a benefit. Here are several determining factors of benefits:

1. Supply and Demand

The first determining factor of benefits is supply and demand. If there is a high supply of job vacancies, then the benefits given tend to be relatively small. Conversely, if the supply of job seekers is less than the job vacancies, then the benefits given tend to be quite large.

2. Education, Experience, and Responsibilities

The next determining factor of benefits is education, experience, and allowances. Generally, companies will consider wages according to the education, experience, and responsibilities of their employees. The higher the level of education, experience, and responsibilities that a job seeker has, the greater the benefits received tend to be.

3.Cost of Living or Economic Ability

The third determining factor of benefits is the cost of living or economic ability. In realizing fair wage distribution, the cost of living is the most important factor. Therefore, giving benefits to employees should be based on the current cost of living.

4.Company Capability

The fourth determining factor of benefits is the company's capability. Company employees must also enjoy the benefits if the company makes a profit. These benefits can be enjoyed through profit sharing or wage increases.

5. Employee Productivity

Another determining factor for benefits is employee productivity. Companies will not hesitate to provide greater benefits if employee productivity is considered satisfactory. Conversely, employees who are less productive tend to experience a reduction in benefits from the company.

6. Employee Position

And the final determining factor for benefits is the employee's position. The amount of benefits is also adjusted according to the position held by an employee. Employees with higher positions are entitled to receive higher benefits. This is reasonable because the higher the position, the greater the responsibility that is carried.

That is the meaning of benefits that KLovers can understand and comprehend. Not only knowing the meaning of benefits, but KLovers can also know the types and determining factors of those benefits.

(kpl/gen/dhm)