Employee benefits overview and workplace value

Employee Benefits -- Genentech and Zappos

As one of the ways to fulfill HRM goals, employee benefits are very important and highly desirable. Companies that realize there are different ways to motivate employees and provide them with benefits often come out on top from the standpoint of HRM because these companies think outside the box and realize there is more to an employee's life than how much that employee is paid or whether he or she has insurance. When a company focuses on HRM, that focus naturally spills over to what can be done to keep employees happy and keep them from leaving for greener pastures (i.e. another company with more to offer). Human resource managers know that employees are the company's greatest asset (Armstrong, 2006). If employees are not treated properly the company can fail, even if customers like its products.

When there is a high rate of turnover in a company and/or the morale of the employees who remain is very low, it is time for the Human Resources department to consider the cause. Some employees will always come and go, and very few companies have zero dissatisfied employees. It is impossible to please everyone all the time. However, when large numbers of employees are unhappy and many of them leave just as soon as they can find something better, the HRM department must work to determine the cause. Talking with employees about the problems they are facing can go a long way toward determining what kinds of benefits would actually be beneficial to the largest number of workers (Armstrong, 2006). It is not all about money, and when a company shows that it cares about its employees, those employees will be happier and much more likely to stay. They may get paid more somewhere else, but they will lose other perks that they find more important -- and so they stay with the company instead of leaving for a higher salary.

2. Employees generally like to be well-paid, and they like to know that they will not be financially destroyed if they have a health crisis. Good insurance for the employee and his or her family is important. For many employees, however, money and benefits are not overly motivating on a long-term basis (Armstrong, 2006). In other words, there are many companies where a fair salary and an insurance plan are available, so these things are not a particular enticement for an employee to remain at a specific company. Where Genentech and Zappos differ from many other companies is in what they use to motivate their employees. These are two companies that have realized that the term "employee benefits" means more than just pay and insurance. The nap rooms that Zappos (2010) offers and the on-site childcare provided by Genentech (2011) clearly show that the company is actually concerned about the well-being of their employees -- and that is a very important benefit.

What employee would not like to have his or her small children nearby and safe while he or she was working? What employee would not enjoy the option to take a short nap without fear of being fired? Employees who are happy and who feel valuable to the company are more productive, more energetic, and more likely to work harder than employees who feel as though their employers do not care. Yes, employees are replaceable. However, that does not mean they have no value. Genentech and Zappos see the value in each and every one of their employees, and so they provide benefits that motivate those employees to stay with the company (Genentech, 2011; Zappos, 2010). Many of the benefits offered by these two companies are not offered at other companies, so employees want to stay where they are. That encourages those employees to work harder, to make sure they can continue to enjoy their current benefits. The companies also benefit, because high morale and low turnover means higher productivity and lower cost.

3. Incentive benefits that stray outside the realm of a good salary and health insurance can be used at almost any company or organization. People like to feel valued, and when they feel valued they have a better outlook on life, including their job. They work harder, and they willingly give more back to the company for which they work, because they see that they are important. If an employee does not feel needed in any way, he or she may have trouble coming to work. What would be the point, other than to get a paycheck which can be collected from other companies in addition to the current company?