FRINGE BENEFITS IN BRITISH INDUSTRY
| Published date | 01 November 1977 |
| DOI | http://doi.org/10.1111/j.1467-8543.1977.tb01142.x |
| Author | R. I. Hawkesworth |
| Date | 01 November 1977 |
Brirish Journal
of
Industriul Relations
Vol.
XV
No.
3
FRINGE BENEFITS IN BRITISH INDUSTRY
R.
I.
HAWKESWORTH*
IN
the labour markets
of
Adam Smith, workers made occupational choices with refer-
ence to comparative total net advantages, not only with reference to comparative wages
and earnings. Two non-wage factors in particular form an important part
of
total
remuneration, namely job satisfaction and the items commonly referred to as ‘fringe
benefits’. The latter are a form
of
remuneration made
to,
or on behalf of, employees
over and above gross wages and earnings, and have become an important part
of
the
job
offer in labour markets. The approach of this investigation is to ascertain the types and
the extent
of
fringe benefits in a sample
of
industries in Great Britain, and also to assess
the factors which influence the level
of
benefits among industries. The results
of
the
analysis show that the higher. is the level
of
wages and salaries, the higher are both the
level
of
benefits and also benefits as a proportion
of
wages and salaries.
TYPES
OF
FRINGE BENEFITS
There is a wide variety
of
fringe benefits in British industry and the incidence amongst
firms varies considerably. Two surveys, the
1960
University of Glasgow survey’ on
benefits and a survey in
1973
by
J.
Moonmaq2 covered about eighteen different fringe
benefits. In both studies paid holidays and pension schemes were, in that order, the most
important fringe benefits, measured both in terms
of
amount
of
expenditure per
employee and the incidence
of
the benefits among firms.
The data for this investigation is obtained from the Department of Employment’s3
surveys on labour costs in Great Britain,
1968
and
1973.
Five major categories
of
benefits, widespread amongst firms in the sample, are given below.
1)
Private social welfare payments:
superannuation
group life insurance
sickness payments
industrial accident payments
ex gratia and good-will payments;
2)
Payments in kind:
net cost to employers for goods provided free or below cost (e.g. food, drink
and fuel)
luncheon vouchers;
3)
Subsidised services to employees:
net cost to employers
of
medical services, canteens, housing, removal, transport
to and from work, clothing and recreational facilities;
4)
Provision for redundancy:
statutory and voluntary payments4 to employees;
5)
Paid holidays.
*Research Associate,
Department
of
Economics,
University
of
Bristol.
306
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