How compensation and benefits can motivate employees
How compensation and benefits can motivate employees
Employees receive compensation from their
employers as payment for tasks completed. It is a fundamental tenet of the job
relationship and can be in the form of a yearly income, an hourly rate, commissions,
as well as the chance to get overtime pay and bonuses. Benefits include
additional, less obvious types of financial support including profit-sharing,
stock options, health insurance coverage, and pension contributions. These
items have a monetary worth but aren't often paid for directly
Building employee motivation
As high employee turnover can have a
negative effect, keeping good employees as they advance their education and
establish business culture can boost employee engagement and productivity.
Motivating talent is essential to keeping them on board and maximizing their
potential
Paying workers a fair wage boosts their
likelihood of having a stable financial situation in addition to making them
feel valued. Financial stability helps employees feel engaged and at ease in
their jobs; if they are struggling to make ends meet or don't feel their work
is valued, they are more inclined to hunt for better income elsewhere
Benefits can offer comparable inducements
to remain and support organizational objectives. Good benefits can ease
employees' lives and foster a sense of appreciation. Even if an employee's pay
is less than elsewhere, they are more likely to stick around and contribute if
they feel protected by strong benefits
Another crucial factor is how fairness is
perceived. Employees are more likely to stay and desire to contribute to the
company's objectives if they believe that their remuneration and benefits are
fair and that their organization chooses compensation levels in a fair manner
Regular evaluation gives you the
flexibility to make any necessary improvements, just like it would with any
other aspect of your organization. Even while the pay structure typically only
undergoes annual revisions, there is always a potential that unanticipated
market or organizational needs, such as the cost of living or a rising turnover
rate, may necessitate adjusting compensation
A company's wage structure shouldn't be
arbitrary; rather, there should be a set amount that the company is willing to
pay for each position, which should be balanced between the company's budget,
the "market rate" for the position, and the position's relationship
to other positions within the company. If an employee receives compensation
that is outside of the budget, the company could suffer
Conclusion
Benefits for workers are crucial, in addition
to high compensation, which can greatly influence employee motivation and
attraction. In an online survey in 2015, 57% of adults stated that benefits and
perks were important factors in their decision to accept a job. Being an
employer of choice with motivated, engaged employees may depend on having a
robust, comprehensive benefits package that takes care of their requirements
and makes them feel cared for.
References
Armstrong, M., 2014. A guide to
people management. In: Armstrongs Essential Human Resource Management
Practices. s.l.:s.n., pp. 143-151.
Bratton,
J. & Gold, J., 2017. Human Resource Management: Theory and Practice. London:
Palgrave.
Hanks, G.,
2016. The Difference Between Hard and Soft Human Resource Metrics. [Online]
Available at: http://smallbusiness.chron.com/difference-between-hard-soft-human-resource-metrics-73984.html
[Accessed 16 Apr 2023].
Comments
Post a Comment