Case Study: Imagine Working In An Organization Where Employe

Case Studyimagine Working In An Organization Where Employee Morale Is

Imagine working in an organization where employee morale is low, turnover is high, and the costs of hiring are astronomical. If that were the case, you’d imagine the employer would go to great lengths to find, attract, and retain quality employees. Couple this goal with the reality of the economic picture—you simply cannot afford to provide expensive benefits for employees who may leave you for a different employer offering an extra $1,000 in salary or benefits. Knowing that 41 percent of all employees have no loyalty to their employers and will move on if a better offer comes adds to the dilemma. These issues clearly are a concern for organizations like Genentech or Zappos.

But they don’t fret over them. That’s because they have found that treating employees with respect, and giving them such things as bonuses, rewards for longevity, onsite child care, lunches, and sending employees home with prepared dinners really works. Genentech is a California company that “develops and produces drugs that cure diseases,” according to the company website. The company celebrated its thirteenth year on Fortune’s “Best Places to Work” list in 2011, also receiving “Best Places to Work” honors from Working Mother, LGBT Equality, and Computerworld. The reasons for this recognition are the important work that they do and the strong company culture that values equality and communication.

Any discussion of how great it is to work at Genentech always circles back to the benefits that show a real respect for employees. In addition to traditional benefits like retirement and healthcare, they provide family-friendly perks such as unlimited sick leave, personal concierge service, flexible work scheduling, childcare, nursing mother’s rooms, onsite nurses, adoption assistance, and company sponsored family events. The list of innovative benefits goes on to include unusual benefits like pet insurance, free snacks, and paid six-week sabbaticals every six years! Zappos, the online shoe retailer, offers perks that match their fun-loving culture like pajama parties, nap rooms, regular happy hours, and a full-time life coach.

Have these benefits worked for Genentech and Zappos? If you translate longevity to morale and loyalty, you’d say they have. Both boast low turnover rates and high employee ratings for workplace satisfaction. Questions: 1. Describe the importance of employee benefits as a strategic component of fulfilling the goals of HRM at Genentech and Zappos? 2. Explain how Genentech and Zappos use employee benefits as a motivating tool? 3. Do you believe the incentive benefits such as those offered at Genentech and Zappos can be used in other organizations? Why or why not?

Paper For Above instruction

Employee benefits are a vital component of strategic human resource management (HRM) as they directly influence employee satisfaction, loyalty, and productivity—all key factors in achieving organizational goals. At companies like Genentech and Zappos, benefits serve not merely as perks but as strategic tools that reinforce corporate values, foster a positive organizational culture, and enhance employee engagement.

Genentech, renowned for its innovative approach to employee well-being, exemplifies how comprehensive benefits can serve as a strategic HRM component. The company’s benefits package surpasses traditional offerings, including family-friendly perks like unlimited sick leave, onsite healthcare services, and adoption assistance. This comprehensive approach is aligned with Genentech’s mission to develop health-enhancing products while fostering an organizational culture rooted in respect, equality, and open communication. By prioritizing employee well-being, Genentech ensures it attracts and retains top talent, thereby supporting its strategic goals of innovation and excellence in healthcare.

Zappos, known for its unique culture centered on fun, creativity, and exceptional customer service, leverages its employee benefits to reinforce its brand identity. Perks such as pajama parties, nap rooms, and regular happy hours are designed not merely as benefits but as expressions of the company's values. These benefits foster a relaxed, engaging work environment that motivates employees by creating a sense of community and belonging. When employees feel valued and aligned with company culture, their motivation and job satisfaction increase, translating into higher productivity and lower turnover rates. Thus, Zappos employs these benefits as strategic tools to embed its cultural values into everyday employee experiences.

Both companies demonstrate that employee benefits, when thoughtfully designed and aligned with strategic objectives, can significantly impact employee motivation. These benefits serve as incentives that promote loyalty by addressing employees’ physical, emotional, and social needs. For example, Genentech’s flexible work arrangements and healthcare benefits reduce stress and foster work-life balance, which enhances employee morale. Similarly, Zappos’ playful perks create an enjoyable workplace, encouraging employees to invest emotionally in their roles. These practices showcase how strategic benefits can serve as intrinsic motivators, fostering a committed, engaged workforce that contributes to organizational success.

While the benefits exemplified by Genentech and Zappos are highly effective in their cultural and organizational contexts, their applicability in other organizations requires careful consideration. The success of such benefits depends on alignment with organizational values, resource availability, and the nature of the work environment. For instance, a highly structured or operationally focused organization may find it challenging to implement playful perks like nap rooms or pajama parties without conflicting with operational demands. Nonetheless, the core principle of investing in employee well-being and creating a positive work environment can be adapted across various sectors. Such adaptation involves tailoring benefits to meet employees’ specific needs, organizational culture, and strategic objectives, thus promoting motivation and retention universally.

Research indicates that well-designed employee benefits programs contribute significantly to organizational performance. According to Milkovich, Newman, and Gerhart (2016), strategic benefits management enhances employee engagement, reduces turnover costs, and improves organizational reputation. In addition, the work of Schaufeli and Bakker (2004) emphasizes that motivated employees who perceive organizational support are more committed and productive. Therefore, while the specific perks of Genentech and Zappos may be unique to their cultures, the underlying strategy of aligning benefits with organizational goals and employee needs is widely applicable.

In conclusion, employee benefits are a strategic HRM tool that can significantly boost morale, loyalty, and productivity when implemented thoughtfully. Genentech and Zappos exemplify how benefits that align with corporate culture and employee needs can serve as powerful motivators. Other organizations can emulate these practices by understanding their unique cultural context and tailoring benefits to motivate and retain their workforce. Ultimately, investing in employee well-being fosters a motivated, satisfied, and committed workforce capable of driving organizational success in today’s competitive environment.

References

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• Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi-sample study. Journal of Organizational Behavior, 25(3), 293-315.
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