Competitive Benefits

Introduction

Employee benefits are provided to the employees in addition to their normal salary or wages. These benefits can include retirement funding, pension, insurance and educational funds etc. the employee benefits program are very beneficial for the organization. It helps the organization to hire and retain qualified employees. Employee benefits also tend to increase the effectiveness and efficiency of the employees. Similarly, they feel proud and their satisfaction level also increases. The research conducted on unions in different organizations confirm that non union workers will get less benefit packages as compared to the unionized employees who will get many compensation benefits. The employees whose organization has a union can remain competitive against a non-union based organization by getting their needs fulfilled by different ways including the strikes.

Discussion

Employee benefits are not compulsory but optional; these are also not related to normal wages compensation. Employee benefits are actually provided to the employees in addition to their normal salary or wages. The benefits in this category may include day care, sick leave, group insurance, retirement benefits, funding of education, sick leave, vacation and alternative work arrangements. There are many benefits of the benefits plan although they are regarded as expensive. In the present competitive environment, where most of the organizations are willing to hire very experienced and talented employees, it has become very important to provide benefits to the employees.

The employee benefits help an organization not only to hire qualified employees but also to retain them at the same time. It has been observed that employee benefits increase the productivity of the employees as the result the profitability of the organization increases. It is because the employees tend to be more effective when they are assured of their security as well as the security of their families. As the premiums act as tax deductibles for the corporation which in turn means that the organization will save. Personal and disability insurance for the employees act as an additional protection for the employees. Similarly, employees can act as brand ambassadors if they feel pride and satisfied with the coverage they receive from the organization.

Employee benefits can be in terms of money or not directly in the form of money which are used to retain, attract, reward and motivate the workers above the traditional salary and wage payment. Monetary compensation includes stock options, lump-sum bonuses, profit sharing payments and some other forms of compensations. On the ...