This paper examines the strategic role of employee benefits in human resource management, arguing that well-designed benefits packages are essential for attracting and retaining talent in a competitive marketplace. It discusses both legally required and voluntary benefits, then analyzes how Genentech and Zappos use innovative perks — ranging from flexible work arrangements and on-site childcare to free meals and nap rooms — as motivational tools that improve morale and productivity. The paper concludes that the creative benefits approaches demonstrated by these companies can and should be adopted more broadly, as reductions in turnover and increased employee output typically offset the organizational costs involved.
Employee benefits are critically important in today's highly competitive marketplace. They function to meet a variety of personal and family needs for employees and, for that reason, are highly desirable and actively sought after. For human resource managers, benefits serve to attract and retain the best and brightest personnel. There are legally required benefits and voluntary ones — each carrying its own associated costs and administrative complexities for an organization. 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 various coverage extensions for family members and domestic partners.
The full range of benefit types, from mandatory statutory requirements to discretionary perks, reflects the breadth of employee benefits as a field of HR practice. Understanding both categories is essential for HR professionals designing competitive total-compensation packages.
Employee benefits are also important because they are expected. They can provide meaning and value to employees and directly influence work behavior. Poorly designed or inadequate benefit plans have the potential to create low morale and lead to higher-than-desired turnover rates. By creatively designing benefit options, HR administrators can cost-effectively secure top talent for an organization. Benefits packages can complement salary packages and help create a more attractive overall offer, particularly for senior-level hires.
"How two companies use innovative perks as motivators"
"Why all organizations should adopt creative benefits packages"
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