The question of “how much does this job pay?” comes easily to most employees; however they sometimes fail to recognize the complex nature of compensation and benefit programs within an organization. There needs to be a distinct balance between two competing needs – addressing the needs of the workforce but at a reasonable cost to the employer. Achieving this balance is difficult, especially as different generations are looking for different benefits for different work/life styles.
Other options HR staff must consider is how to provide these benefits. Some organizations provide certain levels of benefits to various employees while others have benefits provided on an awards system. This method provides more benefits to employees with higher performance levels, thus rewarding those with higher levels of motivation and possibly loyalty to the company.
Another factor is workplace security – whether this is from benefit programs, such as health insurance or workers’ compensation, or freedom from threatening or violent people. Assuring the safety and security for employees allows them to work without fear of any form of harm.
After completing the readings and assignments in this section, you should be able to do the following:
Learning Outcomes: 5, 6
5. Design compensation and benefits programs to boost employee motivation and performance with effective communications.
6. Analyze the primary objectives of personnel administration and their contributions to personal and organizational behavior.