Why should you consider giving your employees benefits that go beyond the legal limit? The answer is simple and there are a number of reasons to offer them.
The main motive to offer employee benefits is for a higher quality of work from your employees. When employees feel appreciated and are happy they feel more loyalty toward their employer; this loyalty translates into many aspects of their work and over time yields an effective workforce that supports the growth of an organization.
Offering benefits to your employees increases the appeal of your organization to potential new hires. Much as an employer weighs the strengths and weaknesses of possible new hires, someone applying to work at your organization will weigh the pros and cons. So, offering competitive benefits provides a strong incentive for the most qualified candidates to apply and increases the desire to work for your organization.
Having employee benefits increases employee retention as well; having an above-average benefit plan will help retain key employees in your organization by providing them with the reassurances that other employers may not offer. When employees are looking for a possible new job, there are a myriad of things they consider, aside from the basic salary. Employees are incentivised to stay if they currently have a competitive benefits package, even if the employee gets an offer for more than their current base salary from another organization. Sometimes employees choose to stay for the additional benefits.
Also, a well-planned benefits package will decrease the turnover rate in an organization and retain key employees as a core group for years. Having this close-knit group of employees creates a higher morale for the business atmosphere and ensures that organizational knowledge remains. A higher morale is a great way to encourage your employees to do their best work and influence others in an organization to do the same. Happy, inspired employees ensure a consistent and efficient workplace that produces high quality work.
More than anything else, there is an overall health benefit for employees who can count on prescription drug coverage, eye care, dental care, and the like. This will in turn create a strong work environment with healthy employees that will be driven to do their best work.
Pay, salary, and hourly rates are some of the various ways that employees are compensated for their work and fall under spectrum of “pay”. When choosing a pay structure and determining total compensation, many things need to be taken into account. Of course, the experience level of the worker, the job duties to be carried out, the educational requirements, and even what type of pay employees previously received needs to be considered. It takes a carefully weighted system to determine what an employee should be getting paid to have an even balance between making sure employees feel they are receiving a fair rate of pay and preventing the organization from paying too much for a particular skill set and experience.
Human resource professionals are experienced in considering pay structures that are beneficial for both employee and employer. This makes the experience of human resource professionals invaluable to a business because it means creating a pay structure that is at the right competitive level with respect to pay while ensuring employees feel valued and appropriately compensated.
This feeling of value, fairness, and equity has a tendency to increase the confidence of employees and elicits a greater loyalty to his or her organization. Pay can be an effective tool when trying to motivate employees within an organization and when trying to gain new employees that are qualified and experienced. Since pay is one of the first things looked at by applicants, a pay structure that showcases an organization’s willingness to be fair and pay its employees what they deserve is well-advised.
Pay structures in an organization are used in conjunction with total compensation plans. When creating a pay structure, an organization must take into account their total compensation structure and package. The approach to pay that organizations take will be guided by their short and long term objectives and vision for the organization.
Pay equity represents the collection of issues regarding equal pay for the same jobs as well as equal pay between men and women. Many of the regulations regarding this is passed down from the government level to businesses. When choosing a pay structure for an organization, pay equity should be considered.
Many of the problems that arise from pay equity issues are at the heart of controversial and heavily political debates and discussions. There should be a recognition on behalf of the organization as to why inequitable pay practices are undesirable and a true desire to avoid this. With new laws being passed by the government over the past decades, there may be some legal obligations that are unknowingly not being adhered to; this is why having a human resources professional review and understand pay equity within an organization can be invaluable. It will help determine whether there needs to be changes made to the current pay structure and if so, what those changes are.
Some of the most common pay equity issues come from differential pay between men and women having similar duties. Aside from the gender pay gap, it is also illegal to pay discriminately based on race, religion, or disability.
In an era when pay equity is increasingly important, it is paramount to keep up-to-date with the legal obligations of paying individuals fairly for the same work. Hiring outside help with these issues is sometimes the most cost effective and efficient ways in which to accomplish this. It is crucial to find professionals that are fully capable and excel at determining fair and equitable pay structures for the varying duties within any organization.
Even if you feel your organization already implements pay equity standards correctly, a human resource professional can provide a review and suggestions to guarantee equal opportunity for all.
Total compensation is certainly an attention-grabbing subject when it comes to business. It is the full capital and resources that an organization uses to pay an employee. Total compensation should not be confused with pay, although pay is included in the “total compensation package” that an employee receives.
Total compensation can include a number of items above and beyond pay. Total compensation goes beyond pay and includes things in addition to a salary/hourly wage such as medical benefits coverage, paid leave, disability insurance, life insurance, retirement benefits, and relocation expenses. Developing and communicating a strong total compensation system can yield significant benefits to the bottom line of an organization.
The total compensation includes the total rewards received by an individual. Such rewards can be used as an extra incentive to further encourage employees to make grater strides toward professional growth and hit certain goals within a given time period.
Compensation is one of the keys to showing an employee just how much they are valued for their work within an organization. When an employee receives pay, they normally see just the simple pay that ends up going into their bank accounts. Openly disclosing and showing employees the total compensation they receive for working at an organization can be beneficial as it allows the employee to see how much they are actually receiving for their efforts. Some total compensation packages end up being almost double the pay of an employee just because of the amounts of benefits, rewards, and other perks they might be receiving.
Adopting a competitive market-based compensation system is a choice that many growing businesses are making. With more knowledge about what makes a good worker feel appreciated and have a higher morale, businesses can make the conscious decision to incorporate a total compensation regimen that is right for them.
Aside from the ordinary employee benefits offered by most employers, the new business environment of today has ushered in a time where current and prospective employees expect additional perks to be offered by employers.
These employee perks have a seemingly endless range and continue to get more and more unique. For example, these perks can vary from a having access to a company game room, paid time off to volunteer, transportation allowances, and welcoming pets within the office during regular business hours. The types of perks an organization offers should also depend on the type of business it is and the industry within which it operates.
Some of the most popular current perks have more of an impact on a healthy work and home environment. With perks that include childcare, extended paternity and maternity leave beyond the requirements of the law, and gym memberships or discounts, perks make employees feel respected and cared for by their employer.
In some circumstances, certain employee perks should not be used as frequently and could poorly impact a business. As a result, choosing employee perks that showcase your industry’s standards of professionalism as well as perks that your employees will appreciate is of utmost importance.
Choosing unique perks to give your employees enables an organization to retain strong talent as well. With more options than ever and the ability to create your own set of perks, choosing the correct ones has the potential to place an organization at a competitive advantage.
With carefully chosen employee perks, your organization will be poised to retain top talent, improve employee engagement, and attract a wide range of high quality prospects. Employee perks can be your stepping stone into the progressive future of the business world.
Rewards are a great way to show appreciation and acknowledgment of a group or single employee. Rewards go above and beyond the traditional pay and benefits as an extra incentive for employees to always be putting forth their best effort. They are an effective tool for maintaining constant motivation and engagement.
There are a number of different ways to implement a rewards program for employees - several of which are simple to implement and make a world of difference when it comes to employees feeling valued. Some examples of these could include “length of service” awards, credit in the monthly newsletter, or even simple “thank you” notes. These types of acknowledgements are some of the easiest for an organization to start using and a successful strategy to immediately show gratitude and boost employee self-confidence.
Providing financial rewards for exemplary efforts and accomplishments as a one-time gesture can also lead to desirable work behaviours. Financial rewards that are relatively inexpensive for an organization such as extra vacation time or small cash bonuses can be used to incentivise employees. In turn, your organization becomes more profitable due to a committed and engaged workforce.
The benefits to having a rewards program for your employees can far outweigh the costs of implementing and maintaining the program. Depending on the extent of the rewards program applied within an organization, the costs might only be a small investment for a potentially greater return. Employees are more likely to provide exceptional customer service, learn new skills, and work harder when they feel they will be recognized for their effort.
It is invaluable to have employees that feel appreciated and acknowledged for their hard work. This creates a higher morale across the organization and raises the standard to which employees hold themselves, making them more likely to go above and beyond to get a job done and done well.
Promotions have always been sought after by internal employees, but did you know that in many cases its more sought after than a pay raise? In a recent study, it was found that almost two thirds of employees would rather receive a promotion with no pay raise than a pay raise with no promotion. This might seem surprising to some organizations, but employees feel more respected and valued when they are asked to take on greater responsibilities.
Studies have shown that there is a tremendous weight assigned to employee recognition and job satisfaction. Most employees will respond better to career development and a clear path to career success than an increase in pay.
Its interesting to note as well that most employees believe a promotion should happen every 2-3 years whether there is an associated pay increase or not. As well, 56% of employees believe that the reason they haven’t been promoted is because of “bottle necking” within the organization. So, with these two key pieces of information, the answer to promotional issues within an organization becomes clear. An organization should take steps to create a clear path to promotion by setting goals, educational standards, and other necessary requirements.
Employees will work for the desired promotions that they feel they deserve and want. When clear expectations are put in place, employees can make targeted decisions.
More often than not, if an employee would like a promotion, they will go out of their way to talk to a manager or supervisor and lay out a plan. By being proactive and making clear career paths beforehand, an organization can guide employees in the desired direction. Employees will already know the way and will be enabled to start working toward their goals.
Job evaluations are sometimes misunderstood. A job evaluation and a job analysis are commonly mistaken for the same thing, but are actually quite different.
A job analysis is usually conducted when a human resource professional needs to create a job description. It is a systematic process of examining specific tasks and responsibilities related to a job. In essence, it is the act of pooling together all aspects of a job and putting them into a job description so that an employee will know exactly what his or her job entails simply from reading the description.
A job evaluation is drastically different. It is the process of comparing jobs within an organization and determining the pay structure and matching the pay structure with that of the rest of the industry.
There are internal job evaluations that compare the different jobs within an organization to make sure that all pay is equitable based on the different pieces of the job description. An external job evaluation might be more beneficial for some organizations as the job and associated pay or total compensation is compared to similar organizations within the market. An external job evaluation is done to help determine fair and equitable compensation structures.
It is important to conduct regular job evaluations as the environment is always changing and pay structures are in flux as much as the environment. The value of a position never stays the same over a prolonged period of time, which is why job evaluations are typically ongoing.