Offering Relevant Employee Benefits Can Lead to Which of the Following Outcomes?

Februari 17, 2022 Posting Komentar

Learning Outcomes

Describe common employee compensation and incentive strategies.
Describe common benefits strategies.

Most companies desire to hire the most qualified employees and keep those employees loyal and productive. To attract and keep their all-time employees, companies provide a "packet" that includes bounty (money), incentives (special perks or rewards for good work), and benefits (valuable options such as health insurance and paid vacation).

Because each employee is unique, larger corporations offering a broad range of mix-and-lucifer options to suit individual needs and preferences. As a managing director, y'all may take the option of offering your squad members specific incentives based on their type of work and particular areas of interest and demand.

Compensation

Compensation is just another discussion for wages. Managers work with human resource to set and raise wages based on a number of factors:

Competitive analysis (what are people in similar jobs making per 60 minutes, week, or year?).
Cost of living (it's more than expensive to live in New York City than, for instance, in most rural areas).
Labor negotiations (if the person is a fellow member of a labor union, commonage bargaining may utilize).
Personal qualifications (Audrey may command a higher bacon than Joe because she has more years of experience or a higher level of education).
Supply and demand (if your company must find a person with specific qualifications and there are very few people with those qualifications, your company may need to spend more to concenter qualified candidates).

Every bit a manager, yous may demand to negotiate compensation both inside your corporation and with your new rent. For instance, y'all may need to brand the instance for paying Audrey more than than Joe would have demanded by explaining why Audrey'southward skills will make a positive difference to the bottom line. The reasons behind bounty are complex; as a manager, you will need to keep your eyes on the competition and changing trends to be sure your employees receive fair and equitable pay.

Payroll Management

Bounty is usually provided through a payroll organisation that manages and records payment of wages to each employee. Payroll systems are ready and managed by HR or past a contracted payroll company. Payroll involves:

Collecting employee information such as W-4 and I-9 taxation forms and proof of legal piece of work status.
Tracking work hours for employees eligible for overtime pay or comp time (extra time off to pay dorsum overtime hours).
Tape keeping related to payment for benefits and bonuses.
Management of state and federal taxes.

Incentives

If you desire to encourage people to work hard, you should offer them both a reward for expert work and a consequence for poor performance. The consequence is frequently that if you lot practice poor work, yous will get fired and lose your income and benefits. But how practise you encourage (or incentivize) a person to practise their best work? The answer depends on the culture of the business, the needs or preferences of the individual, and the options available.

I industry that offers an incredible range of perks and incentives to its employees is software development. Silicon Valley is loaded with companies that provide everything from gratuitous food to massages to its employees. Google, in particular, is well-known for making its employees happy and providing resources to lower stress. Free haircuts and dry cleaning, gyms and swimming pools with personal trainers, nap pods, subsidized massages, and on-site doctors are just a few of the perks information technology offers.

Watch the following news clip to find out more well-nigh perks at Google.

You lot can view the transcript for "Life at Google. Inside Google'due south lair – How google employees work" hither (opens in new window).

Other companies offer completely dissimilar kinds of perks. Home Depot, for example, has a terrific on-site childcare programme called Little Apron that is good enough to exist highlighted by the magazine Working Mother:

Little Apron University has a learning-based curriculum and offers programs such as Language Works, Math Counts, Science Rocks and ArtSmart, as well as kindergarten prep and school-age programs, and programs geared toward infants, toddlers and preschoolers. It has a capacity for 326 children—including 278 enrolled total-fourth dimension and 48 school age kids who attend for summer camp and school breaks. The center also provides back-up intendance services for families of The Home Depot.^[1]

It's piece of cake to guess which types of employees would exist attracted by foosball (young single men) and which by a childcare program (working mothers and fathers). But there are also incentives that can motivate people with completely unlike needs and goals. For example:

Many companies offer depression-cost, fun perks such equally catered lunches, free snacks and coffee, and Employee of the Month awards.
It's common for companies to include employees' families in special events such equally picnics, ballgames, and outings.
To encourage employees who make direct sales, some companies offer meaning incentives for meeting or exceeding goals. For case, Huntington National Depository financial institution offered sales teams a programme that allowed them to earn points toward an all-expenses-paid trip to the World Series.
Some employees are more motivated by opportunities than by "prizes." For these individuals, it may be more motivating to offer trips to trade conferences and conventions, plum assignments, or inclusion in upper-level meetings.

Practice Question

Benefits

Benefits are a part of the compensation parcel, and they are often worth a great deal to employees. Health insurance and retirement, in detail, are valuable and coveted benefits. And then too are paid vacations, sick days, life insurance, and retirement packages. Because these benefits are so valuable, information technology'south important for managers to make their employees enlightened of what's available to them—and to piece of work with 60 minutes to provide preparation in how to access and use benefits.

In most companies, employees can choose among unlike benefits. There is a cost associated with many benefits, so some employees will opt out (then they can accept more in their paycheck) whereas others will opt in (for better wellness benefits or a greater sense of security in case of disaster).

Healthcare: Health benefits are usually offered in the class of health insurance, but many companies also offer on-site practice facilities and programs for reducing stress. Wellness insurance comes in many "flavors"; ofttimes employees can cull among several levels of HMOs, PPOs, health savings accounts, and even on-site clinics.
Paid vacations: The Fair Labor Standards Human action (FLSA) does not require payment for fourth dimension not worked, such every bit vacations or holidays (federal or otherwise). Some offer very minimal vacation—and hourly or office time workers may get no vacation at all. To compete for highly qualified workers, however, the bulk of companies do offer at to the lowest degree some paid vacation. Usually the number of holiday days increases over time—i reason for employees to stay loyal to their employer.
Retirement: Retirement programs requite employees regular income after they leave the company. For many people, a good retirement program is enough reason to stick with a chore, even if the job is less than thrilling. There are two major types of retirement plans: pensions and contribution plans (commonly 401(k) plans). Pensions offering regular, guaranteed income to retired employees for the residual of their lives; retirement benefits may as well exist offered to surviving spouses. Although pensions were pop for many years, near employers no longer offer them. Contribution plans invest funds provided past both the employee and the employer. Funds are invested, and they may grow or shrink depending upon the market. These days, contribution plans are much more common than pensions.
Stock and Stock Options: If a corporation is large plenty, it may offer stock (shares in the company) every bit one benefit of employment. If the corporation is doing well, stocks can become increasingly valuable. For some employees, stock options are a good way to share in their employer'due south success.