Employee Benefit

Employee Benefit

Introduction

The initial attraction of the job seeker to an organization is an essential stage in the workforce development process. Job seeker's initial attraction is important because they ultimately apply to firms to which they have established some level of attraction. It is equally important for organizations to enhance the employee recruitment as it is critical for them to classify and understand the factors that initially attract job seekers to organizations. The job seekers develop an opinion about the firms even before they start looking for jobs (Cable & Turban, 2001) and these opinions then influence their further responses. Although small businesses have better ideas and effective leadership, they are often weakened by their inability to hire the skilled talent needed.

Compensation and Benefits

If not everything, money is the first thing. It is essential for organizations to provide a strong foundation of compensation to its employees, without which it is meaningless for firms to put efforts in attracting job seekers or even retaining their employees (Odunlade, 2012). Organizations in all industries regardless of their size are facing rising pressure to stay competitive in the market. All these organizations work hard in rendering increased level of efficiency and effectiveness to improve their quality of outcomes. Human capital is of high importance in increasing the productivity of organizations as it significantly affects the perception of customers towards them (Bernadin, 2007). Effective employee compensation system therefore represents a major factor in increasing the quality and efforts of employees in an organization.

According to Maslow's hierarchy, money comes in the physiological and safety category, because it is a biological need as money is used by humans to fulfill the basic needs such as food and shelter. For motivation of job seekers to apply for the job, only money will not satisfy the applicant unless it is matched with financial and non-financial benefits as compensation package. For attracting job seekers and for retaining the employees, good compensation package needs to be provided by the firm (McNamara, 2008). Employees are the assets for every organization, but for the businesses in which employees are directly involved with the customers (service provider companies) human capital becomes even more important. In this case, attractive monetary offers are to be provided by organizations to keep their employees satisfied.

Compensation and benefit is the most effective variable which attract job seekers to the organizations. For finding potential and talented workers, several companies might offer these packages to attract these employees (Haile, 2002). In the industry where several companies are competing with each other, the compensation packages needs to be flexible and up-to-date.

It is a fact that several employees leave the organization due to low career progression opportunities. The job seekers are willing to apply in businesses where they can sense growth opportunities and so would be reluctant in applying where the pay scale might initially be good, but has less progression opportunities. Another important factor for job seekers is the health benefit plans offered to them by the ...