Role of Benefits in Compensation
With the introduction of statutory laws, amounts and forms of compensation have been drawn to cover employees against any injuries they sustain on the job. This rests squarely on the shoulders of the employers in providing insurance covers against such incidences. Compensations are normally done based on the type of injury. Payments are made depending on the ability of a worker to find a job with the disability sustained. Arguments are normally made to the effect that even a worker who has lost an arm can do half the work that a person without any disability does. Employers are at times compelled to give their employees light duties.
A number of companies give their employees work-life balance benefits to be able to retain their employees and similarly woo them to join their working force; the work-life benefits enhance the employee’s commitment to the company and increase the employee’s productivity. Retention of employees to sustain successful business operation is very important to organizations because costs incurred in recruiting and training new employees are on the higher side compared to those of work-life benefits. Another benefit is that employees are entitled to be paid time off. The benefits are at times given by the employers to the employees to gain their loyalty. Some organizations give benefits to their employees to increase their productivity, increase their job satisfaction, and reduce human resource administrative costs.
In the United States, health benefits come second to salary and wages when it comes to winning the loyalty of the employees. Many employers are currently concerned with sponsoring programs that satisfy the aspirations of their diverse workforce. However, due to the fact that employers are not getting maximum value from their benefits investment, they have opted to provide benefit communication programs to create greater awareness and satisfaction with the invested benefits. Employers are currently rebuilding retirement security. Factors to be considered when coming up with an employee benefit plan should be developing an understanding of which benefits best-fit needs, costs that are incurred when such benefits are put in place, productivity, job satisfaction, employee retention, and whether the benefits address the employees’ diverse needs.