Employee Benefits

Employee Benefits Describe the importance of employee benefits as a strategic component of fulfilling HRM goals. Employee benefits are very important in today's highly competitive marketplace. They are function to meet a variety of their personal and family needs for employees and for that reason are highly desirable and sought offer. For human resource managers, they can serve to attract and retain the best and brightest personnel. There are legally required benefits and voluntary ones -- and each has its own associated costs to an organization and complexities.

Popular benefits sought by today's skilled workers include health, dental and vision insurance, retirement plans, paid time off, stock options, tuition reimbursement, employee assistance and wellness programs, and all sorts of coverage extensions for family members and domestic partners. Employee benefits are also important because they are expected. They can provide meaning and value to employees and impact work behavior. Poorly designed and inadequate benefit plans have the potential to create low morale and led to higher than desired turnover rates.

By creatively designing benefit options, administrators can cost-effectively secure top talent for an organization. Benefits packages can complement salary packages and help create a better-rounded offer, particularly for senior level hires. Explain how Genentech and Zappos are using employee benefits as a motivating tool. Companies such as Genentech and Zappos understand the bottom line impact of high employee turnover and low morale. They creatively offer benefits as incentives for employees to stay with the company and focus on their contributions. In short, "cool" benefits can incite high productivity.

For most employees, achieving an adequate work life balance is important. Benefits such as generous vacation and sick time, flexible working hours, on-site child care, and support for nursing and expectant mothers and fathers have paid off well for Genentech. They serve as attractive motivational tools that illustrate the company's support for workers in their everyday/personal lives.

Similarly, Zappos uses benefits such as bonuses, free meals, on-site fitness centers, nap rooms, monthly employee outings, merchandise discounts, pet insurance, and paid volunteer time off to promote the health and happiness of their workers. Such benefits create a positive work culture and help to ensure that all of the basic life needs of employees are addressed. These are all successful motivators for employees to cherish their tenure in these companies and feel that they are a valued part of the work team.

Do you believe the incentive benefits such as those offered at Genentech and Zappos can be used in other organizations? Why or why not? The approach to employee benefits and incentives can, and should, be replicated in other organizations. Most employees spend more time at work than at home with their families. This means that companies are wise to carry out the necessary research and planning to think outside of the basic HR box when it comes to.