Comment this positively in few sentences? What compensation and benefits have be
ID: 434668 • Letter: C
Question
Comment this positively in few sentences?
What compensation and benefits have been used as incentives for employee productivity and motivation? Provide specific details and show the link between the compensation or benefit and the increased productivity or motivation with facts and figures (without violating any confidentiality rules).
Companies or Organizations have a challenge when it comes to acquire and retain employees because people want to make money, so compensations and benefits play a major role to convince their employees or candidates to perform well. People want money or health benefits as the two main compensation and benefit when they work for somebody else, rather than being self-employed. So they look at how much the employer is paying for the position, what health package they offer, do they offer vacations, do they pay bonuses, do they pay overtime, how many hours they will work, and the hours they offer like day time or night time.
Money does not buy happiness alone, people needs to be challenge so they will get the satisfaction of getting compensated for achieving greatness. “Intuitively, one would think that higher pay should produce better results, but scientific evidence indicates that the link between compensation, motivation and performance is much more complex. In fact, research suggests that even if we let people decide how much they should earn, they would probably not enjoy their job more” (Chamorro-Premuzic, 2013). The type of job make a difference on the type of compensation that needs to be offer, for example a construction worker will like bonuses if he finish the construction site earlier while a nurse probably will like paid vacations because she works long hours. Then there are Perks like Google, Facebook and Costco use to motivate their employees. “Google provides free all-day meals to staffers with dishes like porcini-encrusted grass-fed beef and parmesan-creamed onions, Costco offers full insurance benefits to part-time hourly workers, and Facebook lends employees free bicycles to get around its sprawling Menlo Park, CA campus. Those are just a few of the perks and benefits enjoyed by people who work at the companies that place in the top three slots on career site Glassdoor’s new ranking of the 25 American companies with the best compensation and benefits” (Adams, 2014).
Evaluate how effective the compensation and benefits were at motivating employees and increasing productivity.
Compensations to employees motivate employees momentarily like when they get the job, they celebrate that they got it, when they get a bonus they go and buy something or when they get their vacations they plan a trip, but all this compensations does not buy the happiness of the employees, it just help. Benefits are somehow more important because they will be there when the employee will need them versus compensations that is only offer on specific times.
Explanation / Answer
Competition and motivation need to be encouraged through adequate utilisation of value based compensation packages. Utilisation of strategy seems to be all pervasive in the economic environment today, therefore compensation management is not untouched by strategizing resulting in all compensations of employees of an organisation becoming dynamic, and therefore, vulnerable to constant control and monitoring. Compensation is a major input cost for any organisation, therefore, adopting a viable strategy for ensuring that output delivered is commensurate to input required, should be a part of company policy. Management of compensation should be based on very specific guidelines, on the range of pay for every job profile, the factors for deciding compensation for each profile, the system to be adopted for merit and competitive achievements, exceptional performance and quality output. Besides this external factors of commercial environment also impacts compensation management.Keeping this in mind while deciding on the strategy for designing the perfect compensation plan for the organisation would help decide on crucial matters such as linking of increments to team or individual performance and formulating the merit increase grid.
It is important to identify the decisions which are necessarily strategic within the compensation management, by understanding the impact a decision or policy may have on the behaviour of workforce and as a motivational tool along with its ease of implementation. Pay packages for any company are definitely an issue which exhibits their ethical stance in relation to the way they value the employees and their work output. Compensation packages are indicator of the value placed on contribution of a particular individual to the organisation as a whole. Great disparities which exist between various levels of Management, as well as, within different profiles of the same level, can result in extreme discontent and demotivation of employees receiving comparatively lower compensation due to self worth being greatly deprecated. An effective employee benefit program will need to provide adequate financial protection to the family of the employees in the case of illnesses, disability, death or unemployment. Providing financial cover for families of the employees during times of crisis, which will create an image of compassion in the mind of the employees, thereby boosting morale and subsequently productivity of the employees. Another major benefit is that it serves as an attractive tool within the recruitment policy helping to employ and retain the best available talent within the segment without having to bear the burden of excessive pay packages and perks on a regular basis which can be very expensive, making a benefits program the extremely cost effective option. It is essential to obtain data of benefits offered by various companies within the segment and ensure that the benefits which are considered to be industry standards have definitely been included in the benefits program, as inability to do so may result in serious issues in recruitment and retention of employees.