Importance and Roles of Employee Compensation - 1415 Words

When thinking about a job, considering the salary and the benefits offered by and employer is important. Many benefits play a critical role in the lives of employees and their families by assisting in health needs, future financial security, needed absences from work, and more. Benefits may include programs like paid time off, medical insurance, dental insurance, disability, life insurance, retirement benefits, family leave, education and training programs, bonuses, commissions, and stock options. Employee compensation was first introduced to America by Europe and imbedded in the colonies. â€Å"The Plymouth Colony settlers’ military retirement program, which was established in 1636, was of the first compensation programs recorded.† (EBRI,†¦show more content†¦Some companies offer unique benefits, and unique benefits can vary depending upon the nature of the work. Examples of unique benefits are cars, cell phones, laptops, cafeteria plans, products or service discounts, telecommuting options, credit unions, uniforms, child care, nap rooms and nursing facilities. Employee benefits play an increasingly important role in the lives of employees and their families, and have a significant financial and administrative impact on a business. Most companies operate in an environment in which an educated work force has come to expect a comprehensive benefits program. Indeed, the absence of a program or an inadequate program can seriously hinder a companys ability to attract and keep good personnel. Employers must be aware of these issues and be ready to make informed decisions when they select employee benefits. The high costs of pension plans are, at first glance, a drain on company resources. With so many employees going from job to job and taking their experience and training with them it seems a waste of time and resources to offer pensions but we hope to show how providing retirement benefits to employees actually benefits both the employer and the employee. Years ago an employee would stay with one company for most, if not all, of his or her work ing life. The employee knew that by doing a good job and maintaining a loyal attitude toShow MoreRelatedEmployee Benefit Plan Development : Employee Benefits Essay1508 Words   |  7 PagesEmployee Benefit Plan Development â€Å"Understanding your employee’s perspective can go a long way towards increasing productivity and happiness† – Kathryn Minshew, founder of The Muse. In today’s highly competitive and robust job market, benefit programs have become an integral aspect of an employer’s total compensation package. In fact, an employer’s total benefit package plays just an important role in attracting and retaining talent for organizations as monetary compensation, according to a recentRead MoreTaking a Look at Worker Compensation787 Words   |  3 Pagesconsist of Compensation and Benefits as one of the essence in the structure of managing an entire workforce. As being mentioned in www.boundless.com, Compensation deals with the salary and wages of the employees. There are several definitions about Compensation, but generally, Compensation is the overall form of monetary or non-monetary pay that is given to the employees as a reward for their required serv ices and relationship to the employer. (Susan M. Heathfield, n.d.) The importance of CompensationRead MoreProposition of Interclean in Puerto Rico1172 Words   |  5 PagesCompensation scenario Proposition of InterClean in Puerto Rico InterCleans expansion into the Puerto Rican market place is subjected to a series of challenges, including the creation and implementation of a compensation plan based on the specifics of the local market. Based on this, as well as based on the features and objectives of the firm, the compensation plan to be implemented within the new location is composed from a combination of financial and non financial incentives. The mixtureRead MoreHuman Resource Structure807 Words   |  3 Pagescompany like Tianyang Food, a food production company in China. HR department act as the support for the organization in the likes of law, compensation, benefit, safety and health of the employees and the organization. However, the improper management from the HR structure can put the organization in a very difficult situation. Based on the case study, an employee named Lu Yueting had poisoned the dumpling in the company by using a piston because he was not satisfied with the salary that he and hisRead MoreMicrosofts Human Resource Management Strategy679 Words   |  3 PagesProfile: Microsoft Corporation Importance of Strategic Human Resource Management Talent Management Strategies Compensation and benefit packages for employees Policies and practices for Labor relations management Comparison with the Competitors Conclusion OBJECTIVES OF THE HRM STRATEGY To design effective talent management strategies; including recruitment and selection, motivation and retention, performance management, etc. To design competitive salary and compensation packages and decide theirRead MoreFunctions Of Performance Management System806 Words   |  4 Pagesis defined as â€Å"The practice that drives decisions about performance, remuneration, promotions, disciplinary procedures, terminations, transfers and development needs encompassed in a business†. Although this major human resource function has a key role in organisations, Aguninis (2013 p.2) argues â€Å"That many organisations are not using their performance systems effectively†. This results in a major deficit in improving the efficiency of an organisation, but more specifically those that are employedRead MoreIssues in Human Resources Management Simulation1081 Words   |  5 Pagestogether towards one goal, success. The following report is a summary of the simulation involving Human Resources Management issues. Scenario Within the simulation, the class was asked to take on the role of the Human Resources Manager at the Cartwright-Porter Airport. Here, we will encounter employee-related problems that call for immediate and timely responses while applying Human Resource Management concepts in evaluating and arriving at the solutions. Impacts of Specific Activities ActivityRead MoreTable Of ContentsPrefacexiiiPART ONEThe Strategic Human1743 Words   |  7 PagesTable of Contents Preface xiii PART ONE The Strategic Human Resource Management Model 2 Chapter 1 Strategic Importance of Human Resource Management Chapter Objectives Challenges Facing Canadian Organizations Spotlight on Ethics: What Is a â€Å"Right† Behaviour? Objectives of Human Resource Management Strategic Human Resource Management The Organization of Human Resource Management The Human Resource Management Profession of the Future The Framework Used in This Book Spotlight on HRM: Will the 21stRead MoreSustaining Employee Performance1429 Words   |  6 PagesSustaining Employee Performance HRM/300 Instructor’s name Date Sustaining Employee Performance In this paper, team D will address the course design objectives of Riordan Manufacturing. First of all, the team will pick two job positions within the company, and discuss the general functions of performance management systems, job evaluation methods, compensation plans, and the importance of employee benefit plans. The two job positions discussed in this paper will be the Director of AdministrationRead MoreBenefits And Benefits Of Employee Benefits Essay1422 Words   |  6 Pagesthe phrase employee benefits is mentioned there are many different perspectives from various angles as to what exactly employee benefits entail. Some perspectives are, but not limited to, what is deemed an employee benefit, what benefits are required by law to be given to employees, benefits that employees might feel are superior, and whether or not benefits provide value to the employer. For clarification purposes Alison Doyle offers this, â€Å"Employee benefits are non-salary compensation that can var y