Maximizing Employee Performance: Strategies & Benefits - Essay Sample

Introduction

Human resources are one of the significant assets needed by the organization to run effectively. With inadequate, unqualified, or no employees, the organization cannot optimize its income. Therefore, there is a need for the organization to develop a strategy that keeps the employees as productive as they can. Employees' benefits are advantages above the average salaries and wages given to the employees. Having an effective employee program can help attract talent and retain them. The program can also play an essential role in the competition of high qualified employees among organizations. Finally, it can be significant in fostering the employees' morale. (Kumar & Pansari, 2015). Therefore, business owners must establish the best criterion for employees' benefits. The program varies from an institution to others, depending on what the organization feels is essential for the employees. There are several variables of consideration when coining an employee's benefits program.

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Variables of Consideration

One of the variables that are almost considered every time is the cost of the benefit given to the employees. All benefits provided to the employees affect the profitability of the organization either directly or indirectly. For example, in case the organization provides a one year maternal live, then the employee will not work for the entire year. Therefore, there will be no specific input, and there will be an indirect negative effect on profit. Moreover, in case the health insurance benefits are very high, the organization will use the advantage to pay for it; hence, it will be a direct influence on the organization. Generally, the cost of the benefit is inversely proportional to the organization's profit. Therefore, the organization should develop a program that does not plow back the entire profit for the benefit of the employees. It is also essential to estimate the cost of each interest and then sum up all benefits costs. By doing this, the entire budget of the organization benefit is made, and the organization can determine what to give employees as a benefit and what not to provide them with. Finally, considering the employees' benefits costs helps the organization to compare the price in consideration to the organizational capability.

Employees want the other variable of consideration while coining the benefits program. Currently, employees know what they need, and they have set their priority toward benefits dressing their needs. For example, according to the research done by Gustman, & Steinmeier, (2015), most employees in the USA consider voluntary benefits as essential needs for the next five years. Retirement benefits and health benefits are also considered to be higher on the list of priorities. The employees' needs vary from an individual to another, graphically, and even by age. Chinese employees would prefer to have the right house as opposed to a few working hours while in the USA people would prefer a few working hours and buy their own homes. Moreover, employees below thirty years would prefer scholarship benefits while, on the other hand, the one above forty-five years would go for great retirement benefits (Gustman, & Steinmeier, 2015).

Therefore, while developing a program, the organization should focus on the interests that are more needed by the employees. To know this, the institution needs to research the requirement of most employees. Moreover, there is also a necessity to consider what competitors are giving as a benefit to their employees. An additional benefit to the competitor can make an employee opt to work for them. The final variable of consideration is the services that an employee gives to the organization and what is the cost of losing a specific employee. Like the average wages and salaries, the benefits given to the employees should be delivered in proportional to the qualities of services provided by the individual in question. However, this rule only applies to the organization's specific employees' benefits. Several benefits are imposed by the law in each country. In the USA, there are Mandatory Federal benefits that must be given to every employee in the American soil despite their origin. These are considered employee rights, and the organization has no option but to provide them with. Such benefits include employment insurance, workers' compensation insurance, and social securities. In other countries such as the UK health insurance is part of the policy demanded by law.

Therefore, while respecting the benefits that should be given to the employee as stipulated by law, other benefits should be delivered with respect to the quality of services. Generally, it would be unconventional to provide employee benefits that are higher than there total organizational imputes. In some instances, the benefits also should be given in respect to the situation of the employees. For example, maternal leave is unnecessary to the women who are not pregnant even though every woman in the organization has been given the consent. It would also be useless to give retiring employees a scholarship support benefit since their knowledge will not be beneficial to the organization.

Income Protection and Pay for Time Not Worked Programs

Income protection insurance and pay for time not worked are the part of the policies that are popular with the employees' benefit programs in the society today. Income protection is based on the employees' inability to work. The benefit is common in New Zealand, UK, and Australia (Clark, McGill, & Cunado, 2017). The program insurance policy gives employees the expected income for the period they are unable to work due to illness or any other incapacities. The employee gets the rent until they can work again or until a specific period is reached. This program works mostly for the employees who get day-to-day payments or the ones not employed under permanent basses.

On the other hand, the pay for time not worked program is based on an inclusive period when the employee is not at work whether incapacitated, vacation, holiday, call back time, portal-to-portal time, among other times(Clark, McGill,& Cunado, 2017). In most countries, the organization is obligated to pay the salary despite the employee's failure to show up at their place of work in such cases. The main difference between the two employees' benefit is that pay for time not worked covers all situations while the income protection is for the evidence of incapacities. Additionally, income protection works for the people who work under contract such that they will still get income as long as they are sick, and the contract expires. On the other hand, once an employee's agreement is terminated, pay for time not worked does not work. Finally, pay for time not worked is a requirement by law to the employer while, on the other hand, income protection works between an insurer and the employee.

Other Benefits

Critical health service benefits: This is the additional benefit that is considered critical to the employees in the organization. In most countries, health insurance benefit covers only a partial expense in case of critical health problems. The crucial health service benefit covers the part left by the health insurers. Therefore, in the case of such a problem, the employee would not have to pay anything. On the other hand, health insurance could pay hospital bills while the patient is affected by paying other expenses. Therefore, the benefit could help in such an instance. Hence, the interest can be sufficient, especially in the USA, where the employees are more concerned with their health benefits. However, the cost of such an insurance policy is relatively high, and it depends on the organization's capability. Therefore, there is a need for the institution to consider its financial ability before going for such a benefit.

Employees' assistance program: The program helps in identifying and solving employees' problems. Such problems include marital issues, alcohol, family problems, among others. Most institutions have realized that personal issues influence the performance of the employees during their work. Hence, they prefer new solutions to such problems. The program is popular among military institutions and police services (Sonnenstuhl, 2019). Generally, the organization employs psychologists to deal with emotional issues faced by the employees. The program could help in making the employees feel like a part of the organizations since their problems are addressed. The move helps retain talent to improve employees' performance and increase morale.

401 (k) and 403 (b) retirement plan: The plan is mainly useful for Small and Medium Enterprises (SMEs). The method is primarily effective in attracting qualified employees as they are assured of the retirement benefits once they stop working. The plan is relatively affordable. Hence, the organization will not have high expenses on it. On the other hand, the institution pays for the employees as a group; hence the program does not fall to an individual employee. Finally, when used effectively, they pose fewer risks to the benefit plan. However, many organizations have been challenged by the program; therefore, there is a need for research on the best way to execute the plan.

Flexible spending account program: Flexible spending account is the other program that could be used to attract employees in a specific institution. A flexible spending account is the saving that the employees keep so that they could spend on out of small health services. The employer could contribute to the account to encourage more employees. Moreover, it is useful in case an employee gets minor injuries faced during work time. On the other hand, the employees do not pay tax on the flexible spending account; therefore, helping in their payment could reduce their income tax.

Conclusion

The employee benefits program is effective in attracting new employees, improving the morel, and retaining the employees who are already in the organization. However, there are factors of consideration when establishing the program, one of which is the employee work input, cost of the benefit, and the profit of the organization. Some of the significant employees' benefits include income protection and the pay for time not worked. There is also an upcoming policy that could be included in the program, such as a flexible spending account, employee assistance program, critical health service, and 401 (k) and 403 (b) retirement plan.

References

Clark, G. L., McGill, S., & Cunado, J. (2017). Institutions, Behavior, and the Propensity to Hold Income Protection Insurance by Country of Residence. Available at SSRN 2972165.

Gustman, A. L., & Steinmeier, T. L. (2015). Effects of social security policies on benefit claiming, retirement and saving. Journal of Public Economics, 129, 51-62.

Kumar, V., & Pansari, A. (2015). Measuring the benefits of employee engagement. MIT Sloan Management Review, 56(4), 67.

Sonnenstuhl, W. J. (2019). Inside an emotional health program: A field study of workplace assistance for troubled employees. Cornell University Press.