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Employee Compensation and Benefits

Employee Compensation and Benefits

Posted on Sep 2018:- By: PaperHub
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Attracting and also retaining quality employees is a major challenge among individuals especially in the modern day extremely competitive business environment. It is, therefore, imperative that individuals design their company’s benefits program in a way that ensures successful human capital management and also fosters the possibility of retaining of such individuals within the workforce regardless of the size of an entity (Panszczyk, 2001). Having a strategic plan for the employees’ compensation helps in the determination of how much to pay the employees and also on the type of employees that the individual, targets to attract at a given time. The plan of compensation may include a series of aspects and may also include the compensation scales, rewards programs, benefits that may accrue to individuals and also the company perks. Any successful strategic employee compensation plan and benefits must allow the business to be competitive for the best employees available within the workforce or the market (Panszczyk, 2001).

One of the major strategies to employ to attract quality workforce is to offer the best wages and benefits packages in the market.  Some employees are motivated by the amount of money they have as the primary pay and also the benefits that they may also get from a given role (Biswas, 2014). It is, therefore, imperative for an entity to offer the most competitive wages and it is the most direct way to attract the best form of employees and also workforce. It is a major strategy for attracting employees that are more competitive and also holds a bigger promise for productivity. Moreover, they are bound to be more motivated and as a result leads to increased productivity for the company (Panszczyk, 2001).

Creating a strategic employee benefits plan requires the addressing of the employees’ health benefits. It is essential to provide a good health plan that may also include the covering of direct family members to create a successful plan (Panszczyk, 2001). It is because individuals worry more about their health especially as they age and are concerned about the medical implications that come with increased health concerns. If the strategic employee benefits plan can adequately address the health issues through the provision of a suitable insurance cover, then the individuals are bound to be more satisfied especially for the older employees that are bound to face some age related illnesses. The health costs are also on the rise and therefore, there is a need to ensure that the health benefits are reviewed according to the health costs that prevail at a given time (Biswas, 2014).

Retirement benefits are directly related to the employment choices that some of the more qualified and competent employees make (Biswas, 2014). There is a need to have very competent and also safeguarded retirement benefits to the individuals so as to ensure that more qualified workforces prefer and also choose to work in a given work setup. It is this that is imperative to ensuring that such individuals feel satisfied with their benefits and a result are more productive.

It is necessary for the employer to do a needs assessment for particular cohorts of employees son as to offer benefits and compensations that meet the needs of such employees that they may target. If the benefits programs of particular businesses address the needs of employees, then the business is bound to attract and also have a competitive advantage in the attraction and also retention of employees (Panszczyk, 2001). The needs of employees vary with age, educational level, and other factors and therefore, the employer should be able to address the issues and also conduct some form of a needs assessment on individuals to ascertain as to whether the compensations and benefits meet the needs of the employees.

It is imperative also to include rewards for performance for employees within the compensation and benefits strategy of the organization or business. These rewards may be based on the workplace performance and may include commissions accruing as a result of consistent positive results or for surpassing or reaching their goals for particular times (Biswas, 2014). The rewards system should be easily understood by the employees and also transparent at all times. Moreover, the target for the rewards should be attainable enough to the employees to ensure that every time they attain them they are motivated even further.

The offering of perks such as paid vacations and holidays helps in the attracting of the most competent and brilliant employees in the sector that the business is engaged in at the time (Panszczyk, 2001). it is, however, imperative that the business ensures that the perks set is within the manageability of the entity. The perks such as paid holidays and also paid vacations could be offered through partnerships with other entities that provide such services so as to make it cheaper for the business. Such allocations of the perks should also remain transparent, and the set goals need to be attainable by the employees to ensure that they remain motivated (Biswas, 2014).

The system that a company chooses to offer its compensation and also the benefits may break or make an entity it is because it is the compensations and also the benefits that shape up the culture of such a business ensuring that the individual is either motivated or otherwise (Panszczyk, 2001). Moreover, the better compensation strategies that may include the provision of commissions, perks, competitive wages and also other benefits such medical cover ensures that the business retains the best talents and also attracts the best player in a given industry.