Article Critique on "Employee Benefits"

Article Critique 5 pages (2208 words) Sources: 12 Style: Harvard

[EXCERPT] . . . .

employee benefits has been increasingly brought to the forefront. Part of the reason for this, is because globalization has been having an impact on the workforce. As, more companies are requiring skilled labor to ensure that they are able to adapt to the changes that are taking place in the economy. To attract and retain the brightest individuals means that they have been offering them a number of benefits including: paid leave of absences / vacations, health care coverage and host of retirement plans. Evidence of this can be seen with a study that was conducted by the Bureau of Labor Statistics. They found that paid vacations were offered to 91% of employees in the private sector. While at the same time, there was a total of 75% of the businesses that were providing their staff with paid sick leave. (Bureau of Labor Statistics 2011) These different elements are important, because they are showing how many firms are willing to go the extra mile to ensure that they are able to retain the best and the brightest employees. To fully understand the overall kinds of benefits packages that are being offered requires conducting an examination of these programs and the potential long-term impact they are having. This will take place by looking at a number of sources on the subject in the form of a literature review. Once this occurs, it will offer specific insights about how compensation is utilized as a tool to achieve these different objectives.

Literature Review

In the piece of literature that was written by Jackson (2006), she found that employee benefits were a part of what an organization is contributing to workers for their participation or their role inside a particular entity. As, they are designed to: provide everyone with some kind of balance between the work that is being conducted and their lifestyle. At the same time, this is designed to address specific needs that employees have surrounding a wide variety of situations. The big challenge for most companies is addressing the costs that they are paying out through: increased productivity and higher profit margins. As a result, employers will offer two different kinds of benefits plans to include: flexible and targeted. The flexible forms of compensation, allows employees to determine what specific benefits make most sense for them based upon a host of different choices that they have available. While the targeted plans, specifically define what all staff members will receive during the course of their employment with a particular company. These different elements are important, because they are illustrating how wide variety of organizations will offer everyone various kinds of compensation programs. The reason why, is because this will depend upon: their cost structure, industry and philosophy of the organization itself. (Jackson 2006, pp. 437 -- 438)

Moreover, Rynes (2004) found that employees are very focused on pay. As, this factor will determine if they willing to go the extra mile for the firm. This is because they will often compare what is being offered from competitors to determine if they are being treated fairly. As a result, he recommends that employers should be concentrating on aggressively evaluating the company's pay system using a number of different tools to include: employee satisfaction surveys and contrasting their compensation package with other corporations. These elements are important, because they are providing a basic foundation as to how pay is one of the major forces that are driving the underlying levels of motivation inside the workplace. (Rynes 2004, pp. 381 -- 394)

In the literature that was written by Rosenbloom (2005), he found that many firms will often use profit sharing as form of compensation and as a way of motivating employees. The reason why, is because when staff members feel that they are receiving a part of the corporations earnings. They are more than likely to go the extra mile. This is because they have a vested interest in the success of the organization and its long-term survival. At the same time, this is utilized as way of helping to ensure that employees are able to build up their savings for retirement and their net worth. These elements are important, because they are highlighting a second reason why many companies will offer employees various forms of compensation plans. As, those entities that are able to create different ways of motivating their staff members will be able to ensure that the quality of their products and services will remain high. While simultaneously, focusing on how the company can be able to adapt to changes that are occurring in the markets and the impact they are having. This is the point that they will be able to more effectively respond to shifts that are taking place because of globalization. (Rosenbloom 2005, pp. 655 -- 656)

Moreover, the research that was conducted by Beam (2001), found that many firms will often use surveys to understand what benefits are most important employees. The reason why, is because this tool will tell them how they need to adjust their compensation plans in keeping up with what is being offered by competitors. This helps an organization to prevent the loss of key talent, because they are focused on keeping their benefits plan as competitive as possible. While at the same time, they can ensure that they are addressing specific issues that could have an effect on the underlying levels of motivation. Once this occurs, managers will know what issues are specifically affecting workers and how to respond to them. This information is important, because it is providing a basic foundation for understanding how to: create an effective compensation plan and the best ways to adjust it over the course of time. Once this occurs, a company will be able to quickly adapt to changes that are taking place inside the industry. (Beam 2001, pp. 19 -- 24)

In another piece of literature that was written by Rosnebloom (2011), he determined that there were numerous employee benefits that were being offered by various organizations. A few of the most notable include: paid leave, supplemental pay, life / health insurance, retirement savings, defined benefits programs and defined contributions plans. In some cases, employers will offer these various forms of compensation voluntarily. While at the same time, some will provide these kinds of benefits based on regulations that require them to do so. A good example of this is Workman's Compensation. Under the law, all employers must make sure that their employees are covered as a part of the plan. Where, this qualifies as form of insurance that is designed to protect staff members in the event that they become injured on the job. This is important, because it illustrating how different forms of compensation will vary from one employer to the next. As some will offer additional benefits based on: improving the overall amounts of employee motivation. While at other times, various organizations will only provide the basic benefits because of existing regulations. (Rosenbloom 2011, pp. 4 -- 11)

Moreover, the article that was written by Cruz (2009), is discussing how the transfer of knowledge and productivity will have a dramatic impact on a business. The biggest factor that will have an effect these two elements is: the underlying levels of motivation. This is because when employees feel that they are being treated fairly and with respect. They are willing to do more, to ensure that everyone is working together. This is the point that a firm can be able to remain competitive and adapt to a variety of situations. The information from this source is useful, as it is illustrating: why motivation is so important and the lasting impacts that this can have on their ability to remain competitive. (Cruz 2009, pp. 478 -- 490)

In the piece of literature that was written by Koen (2001), the author talks about the specific employee benefits by defining them. This is based upon: the time frame and stages that an individual is working at a company. The most notable include: short-term, long-term, termination, post-employment and equity compensation programs. Short-term benefits are those that the employee will receive for performing a particular kind of service (i.e. bonuses). Long-term benefits are when an individual will receive something that will help them to address their current and futures needs (i.e. health insurance along with retirement planning). Termination benefits are what someone will accept when they leave their employer to include: severance pay and unemployment insurance. Post-employment forms of compensation are when the staff will have some kind of benefits that they will receive after they stop working (such as: a defined benefits plan). Equity compensation is when employees will benefit from the company making more money based on their contributions (i.e. profit sharing). These different elements are important, because they are showing how these kinds of plans will depend upon what stage a particular employee is at during the course of their employment. As, the overall amounts of benefits will vary based upon: the… READ MORE

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