To Attract, Motivate, And Retain Good Workers
To Attract Motivate And Retain Good Workers Companies Need To Defin
To attract, motivate, and retain good workers, companies need to define what an employee wants from the employment relationship. One way to define employee needs is to consider “total rewards,” which are everything an employee perceives to be of value resulting from working for the company. Benefits are a core element of total rewards, and the offerings have evolved significantly over time. Organizations must now work with employees to categorize various programs effectively. This paper discusses three important variables that organizations should consider when designing employee benefits programs, compares income protection programs with pay-for-time-not-worked programs, and explores additional benefits that can strengthen a comprehensive benefits package. Moreover, a sample benefits package is developed for an exempt or non-exempt position, supported by relevant rationale.
Important Variables in Employee Benefits Programs
When developing employee benefits programs, organizations must consider multiple variables to ensure the offerings are effective, competitive, and aligned with organizational goals. Three critical variables are benefits relevance, cost implications, and legal compliance.
Benefits relevance pertains to how well a benefit aligns with employee needs and preferences. For example, younger employees may prioritize tuition reimbursement or flexible work arrangements, whereas older employees might value retirement plans and health insurance more highly. Conducting periodic surveys or focus groups helps organizations understand what benefits employees find most valuable, thereby increasing engagement and satisfaction (Kwon & Kim, 2020). Ensuring relevance also involves tailoring benefits to diverse workforce segments to promote inclusivity and support personal circumstances.
Cost implications are vital because benefits can significantly impact an organization's budget. While offering comprehensive benefits enhances attraction and retention, it must be financially sustainable. Employers need to analyze the return on investment for different benefit offerings and consider the long-term affordability of programs. For instance, substantial health insurance plans might attract employees but also pose financial challenges if costs escalate without corresponding productivity gains (Smith, 2019). Effective benefits planning involves balancing quality and cost, often through negotiated group rates and leveraging vendors to maximize value.
Legal compliance is another crucial factor. Benefit programs must adhere to federal, state, and local regulations to avoid penalties and legal disputes. For example, compliance with the Employee Retirement Income Security Act (ERISA), the Affordable Care Act (ACA), and the Family and Medical Leave Act (FMLA) ensures that programs meet mandatory standards. Employers also need to communicate benefit policies clearly and maintain proper documentation to demonstrate adherence to applicable laws (Friedman & Voelpel, 2021). Failure to comply can lead to costly penalties and damage organizational reputation.
Comparison of Income Protection and Pay for Time Not Worked
Income protection programs and pay-for-time-not-worked programs are commonly incorporated into employee benefits, but they differ in purpose, structure, and legal requirements. Both programs aim to provide financial security but serve distinct functions.
Income protection programs, such as long-term disability insurance and health benefits, are designed to safeguard employees against income loss resulting from illness, injury, or other qualifying circumstances. These programs typically provide ongoing income replacement or coverage during periods when employees cannot work due to health issues (Baker & Addis, 2019). They are usually optional, and coverage levels can be customized, although some jurisdictions mandate certain protections, making them partially mandatory.
In contrast, pay for time not worked programs, such as vacation pay, paid sick leave, and holidays, compensate employees for hours they do not work due to scheduled time off or absence (Milkovich et al., 2020). These are generally considered mandatory benefits, especially sick leave and holiday pay, as they are often governed by statutory requirements. The primary purpose is ensuring employees remain financially supported during legitimate leave periods. While both benefit types mitigate income loss, income protection programs tend to focus on health-related absences, whereas pay for time not worked programs address scheduled or statutory leaves (Shaw & Gupta, 2022).
Other Benefits Recommended for Inclusion
In addition to core benefits, organizations can enhance their offerings with supplementary programs that foster employee well-being and satisfaction. Four to five beneficial options include flextime, product/service discounts, wellness programs, childcare support, and educational assistance.
Flextime provides flexible scheduling options, allowing employees to adjust start and end times to better balance work and personal responsibilities. Research indicates that flextime improves morale, reduces stress, and boosts productivity (Kossek & Lautsch, 2018). It is especially valuable for working parents or employees with personal commitments.
Product and service discounts serve as tangible benefits that promote loyalty and facilitate personal savings. For organizations with retail or service offerings, these discounts can be a compelling incentive, fostering a sense of community and appreciation (Gumbus & Lussier, 2019).
Wellness programs can include fitness memberships, health screenings, and mental health resources. Such programs encourage healthier lifestyles, reduce overall healthcare costs, and improve employee vitality and engagement (Berkman et al., 2020). They have become particularly relevant amidst increasing awareness of mental health concerns.
Childcare support, whether through on-site facilities or subsidies, alleviates parental stress and encourages workforce retention, particularly among female employees (Crosbie et al., 2021). Similarly, educational assistance programs help employees develop new skills, contributing to organizational growth and individual career advancement.
Sample Benefits Package for a Non-Exempt Position
| Benefit Element | Description | Rationale |
|---|---|---|
| Health Insurance | Comprehensive medical, dental, and vision coverage | Supports employee health, reduces absenteeism, and attracts skilled workers |
| Paid Sick Leave | Accrued paid time off for illness or health appointments | Legal compliance and promotes wellness |
| Flextime | Flexible start and end times within core hours | Enhances work-life balance and job satisfaction |
| Productivity Discount | Discount on company products/services | Increases loyalty and engagement |
| Educational Assistance | Reimbursement for job-related courses or certifications | Supports skill development and career progression |
This benefits package was selected based on the needs of non-exempt employees who benefit from health coverage, flexible hours, and opportunities for growth, aligning with organizational goals to foster a healthy, engaged, and motivated workforce.
Conclusion
Effective employee benefits programs are integral to attracting, motivating, and retaining talent. Key variables such as relevance, cost, and legal compliance influence benefit design. Income protection and pay-for-time-not-worked programs serve different but complementary functions, with legal mandates shaping their implementation. Innovative benefits like flextime, discounts, wellness, and educational support further enhance the employee value proposition. A well-designed benefits package not only supports organizational objectives but also promotes a positive employment experience, crucial for long-term success.
References
- Baker, D., & Addis, M. (2019). Employee Compensation and Benefits. Journal of Business and Management, 25(4), 45-58.
- Berkman, E., et al. (2020). Wellness Programs and Employee Health. Health Promotion Practice, 21(5), 705-713.
- Crosbie, P., et al. (2021). Childcare Support and Workforce Retention. Human Resource Management Review, 31(2), 100740.
- Friedman, R., & Voelpel, S. (2021). Legal Compliance in Employee Benefits. Employee Relations, 43(3), 623-639.
- Gumbus, A., & Lussier, R. (2019). Employee Incentives and Discounts. Journal of Organizational Culture, Communications & Conflict, 23(1), 62-74.
- Kossek, E., & Lautsch, B. (2018). Work-Family Flexibility and Employee Outcomes. Journal of Vocational Behavior, 107, 88-104.
- Kwon, H., & Kim, H. (2020). Understanding Employee Needs for Benefits. International Journal of Human Resource Management, 31(2), 203-220.
- Milkovich, G., et al. (2020). Compensation. McGraw-Hill Education.
- Shaw, D., & Gupta, S. (2022). Paid Leave Policies and Employee Wellbeing. Journal of Human Resources, 60(1), 123-139.
- Smith, J. (2019). Cost Management in Employee Benefits. Compensation & Benefits Review, 51(2), 78-84.