How innovations in employee benefits can improve the overall competitive compensation strategy of the organization
In modern times, the employers have been forced to familiarize with various strategies to ensure that their employees are not only motivated, but also retained since it is cost effective to do so (Hellriegel & Slocum, 2009). Moreover, the modern work setting requires the employers to motivate their employees to ensure that they remain competitive something that would only be possible when they work at their full potential. That explains why various employers have been coming up with innovative employee rewards to boost morale and acknowledge their employee’s needs for creativity and personal goal accomplishments (Heneman, 2007). Innovation is a process of developing or introducing something that is new to the market, and it depends mainly on the creativity of the individual introducing it. In most cases, the innovated ideas are meant to enhance the procedures that are in place as well as improve the competitiveness of an organization (Gerson & Gerson, 2006). Worth noting is the fact that the proportions of human life in recent times are transforming at a very rate. That implies that what was of fewer importance years back is in recent times imperative especially in the business world. As a result, the organizations ought to transform as well in order to cope up with the ever changing aspects of people who are the customers (Hellriegel & Slocum, 2009). Apart from the customers, the organizations ought to create an environment that is at par with the ever changing dimensions of life in order to attract and most of all, retain a competitive pool of employees. Just as the customers, the employees of different organizations have divergent and changing needs and that forces the organization to accept and adapt such employee needs (Heneman, 2007).
That, therefore, necessitates the organizations to formulate innovative approaches that would engage their employees as well as prompt and support their obligations to the organization. Moreover, such innovation drives them to advance and improve their performance to the advantage of the organization that might be forced out of the market for failure to adhere to the modern dimensions of their workforce. Moreover, the modern times have seen diversity in workplaces increase, and, as a result, organizations ought to understand and address the diverse needs that their employees have (Hellriegel & Slocum, 2009). Otherwise, organizations are bound to lose their employees as a result of failure to adapt to such innovative modern time’s needs. But because the cost of recruitment is always higher as compared to retaining, the organizations are forced to do all that must be done for that to take place. Apart from the standard benefits that employees expect to get from the organization by illustration pension, medical cover, and risk insurance among others, those employers who take the extra mile of motivating their employees stand a higher opportunity of not only of retaining employees, but also retaining competitive and effective employees. Such employees have the capability of putting the organization in a competitive position in the market as well (Hellriegel & Slocum, 2009). Although others might view them as minimal, such innovative approaches are effective and worthwhile for employers to consider.
Innovation in most cases is, as a result, of a well talented individual, but often, they result as a solution to a problem or opportunity that has presented itself within or outside the organization that it has its origin. Hence, it is not possible for an innovate approach to be adapted to areas that it was not meant to implemented because it would certainly fail (Hellriegel & Slocum, 2009). For example, an innovative approach meant for a certain category of workforce would not be applicable to another category of the existing workforce. According to the various studies that were conducted over the previous years, tailor-made innovations or benefits presents a higher chance of increasing the workforce motivation. They as well offer satisfaction to the organization undertaking such an initiative. That is bearing in mind that they only happen if the innovative techniques have meaning to them (Scott, 1996). Adapting a retirement policy for instance to a pool of a young workforce would not make sense to them since retirement is not their main concern, but rather, health and development might be.
Hence, the question as to whether innovative benefits would be tied to specific jobs is without a doubt a yes; the innovative benefits can only categorically develop and initiated for certain job categories. By illustration, comprehensive risk insurance might be more beneficial to those employees who work in most hazardous departments of the organizations (Hellriegel & Slocum, 2009). The training or gym facility might be more beneficial to those employees whose work entails working around their desks a lot with fewer movements while working. As a result, their vigor’s were considered. While they benefit from good health, the employer will be gaining from their continuous and high productivity, less sick-offs, fewer insurance costs, and retaining a well-motivated workforce would be possible (Scott, 1996). At the same time, offering a child center would work magic since it will increase the concentration of employees with toddlers. They will work knowing that their babies are in safe hands, and a short distance implies that they would rush to breastfeed and get back to their workstations in minimal time (Heneman, 2007).
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Effectiveness of equity-based rewards systems versus those with more creative approaches
Equity-based rewards systems are those compensations that are given by the organization to their employees either through their wages and salaries or overtime, commissions, merit payments, and bonuses. It is an innovative strategy that would be improved by employers to ensure that they attract and retain competitive employees within their organization (Hellriegel & Slocum, 2009). As a result, they will enable the organization to gain and retain a higher competitive advantage in the market. Equally, the equity-based innovative compensations would refer to those parts of a total reward compilation in addition to the direct payments that employees are entitled to such as health insurance, retirement, pension, and subsided entertainment allowances (Scott, 1996). There are various pros that would be attributed to the equity-based reward system, and conceivably the stock options and executive payments would be mentioned as the first example. The others under this approach would be stock awards, stock alternatives, employee stock purchase plan, and stock ownership plan. They in general offer good motivating options for the employees, as a result, a good innovative approach that would be opted for by the employers (WorldatWork (Organization), 2007). They were found to inspire them to a higher of performance. The equity based reward system, therefore, would align the employer’s interests to those of the employees as well as those of the shareholders. As a result, organizations would bring about a motivated workforce not forgetting to mention a conserved resource.
The process equally allows the organization to take advantage of taxes something that ensures that they gain while at the same time, ensuring that they create increased commitments from their workforce (Christofferson & King, 2006). Of more importance is the fact that such rewards are intentionally meant to better their employee’s lives as well as ensuring that they have quality time with their families. By so doing, the employees with realize that they not only are they cared for, but their families are too. As a result of that fact, employees were less distracted and stressed employees have a better opportunity to concentrate on their work producing at their highest level of productivity. That would result to better performance of the company increasing its competitiveness in the market (WorldatWork (Organization), 2007). It would be, therefore, truthful to conclude that equity-based rewards systems and those with more creative approaches are operative and actual if implemented with correct communication technique. Correspondingly, the effectiveness and efficacy of both of them lies on the employees. That is considering the fact that they are at the center of their strategy. The key elements of integrating innovation into a traditional total rewards program
Some of the latest potential employee rewards include but not limited to using the internet at work for personal reasons. The reasons might be shopping or communicating with friends. It might as well include personal finances, bringing a pet to work, instituting a controlled napping policy, and having sports and office betting pools (Gerson & Gerson, 2006). Bearing in mind that employee rendezvous is important to an organization’s performance, it is worth noting that traditional total rewards compensation programs do not initiate the needed compel for employee engagement. That would be the first step towards the integrating of the innovated approaches into the traditional total rewards systems (WorldatWork (Organization), 2007). That would be attributed to the fact that they offer employees with intangible rewards bringing about satisfaction. There are five key elements considered in the process of integrating total rewards strategies. The first one is culture. Since it is comprised of the collective attitudes and behaviors that influence employee’s performance, it would be imperative to tackle it first (Christofferson & King, 2006). Moreover, it comes first since it determines how the employees work within the organization as well as the fact that it bears the internal and external aspects transformed for the strategies to be effective. Environment and attraction are the other two elements that are considered in the process of integrating innovation into traditional total rewards programs (Heneman, 2007).
The environment encompasses the observable features such as the physical and psychological elements that are in the workplace. Taking into consideration that they all set the tone at which the employees are to work, it becomes and important to consider in the process of integration. In addition to the fact that they are visible and quantifiable, they ought to be implemented in such a way that they set the required tone for high performance. Attraction, on the other hand, is an element that enables the organization to attract a pool of individuals who are willing to join the current workforce (Christofferson & King, 2006). Bearing in mind that the organization requires a talented pool of workforce, they are attracted with the right forms of rewards. Attracting talented employees will be less importance was retained. That introduces the other element important in the process of integration. A retention capability of organizations plays an important role towards the success and performance of the new integrated strategies. Finally, motivation is an additional element when it comes to integration from the traditional approach (Ruddy, 2007). It plays a role since they enable employees were motivated towards the attainment of better results capable of place the organization in a competitive position in the market. Recommending a process that optimizes an employee-based suggestion program to continually refresh the total rewards of the organization
The recommended process also should be in a position attract and retain motivated, talented individuals that are committed to the organization’s goals and objectives. By so doing, the process that was recommended should be in a position of adding value to not only the customers who are supposed to ensure the goals and objectives are attained and implemented (Ruddy, 2007). Other important features that would be incorporated to ensure continuity would be to seek to accomplish and uphold market-share leadership. The process also would be unswerving to the provision of world class services as well as outstanding employees that would be the organization’s features to market domination (Heneman, 2007). However, before the recommendations would be embraced to ensure successful implementation, the employer ought to regulate the size of workforce program. That would make sure that they were aligned with the financial capabilities and the organizational needs.
Furthermore, the recommendations ought to consider the work-life of the entire workforce. That implies that the innovated strategies would incorporate programs, policies and practices in addition to a viewpoint or philosophy that supports efforts. Such efforts would be geared towards ensuring that the employees will be in a position to attain progress and success both at work and at home. Apart from compensation, other attributes that would ensure that balance include but not limited to workplace flexibility, financial support, community involvement, paid time-off, and health and well-being among others. By so doing, the employer will have managed to attract competitive employees who would enable an organization to be competitive in the market.
In closing, it is evident from the exceeding elucidation that new and improved rewards systems at work is not only a nice thing that an employer might undertake to his/her employee, but rather, it is an effective tool that emphasizes and underlines on how valuable they are (Ruddy, 2007). Without a doubt, when individuals are recognized effectively especially by their seniors at work, it positively influences their actions and behaviors that were repeated over again. As a result, the employers will ensure that a competitive pool of employees is within his/her authority not forgetting to mention that such workforce got motivated. Of immense prominence as deduced herein is the fact that intrinsic and extrinsic reward systems have equal outcomes when effectively implemented within an organization (Heneman, 2007). That explains why employers have opted to allow their workforce to use an office internet for personal reasons as one of the strategies of retaining competitive workforce who are able to meet the organization’s goals and objectives effectively.
Christofferson, J. & King, B. (2006). The new total rewards model leads the way. Retrieved on 8th June 2014, from http://www. awlp. org/waw/pub/workspan_trarticle. pdf
Gerson, R. F., & Gerson, R. G. (2006). Positive performance improvement: A new paradigm for optimizing your workforce. Mountain View, Calif: Davies-Black Pub.
Hellriegel, D., & Slocum, J. W. (2009). Organizational behavior. Mason, OH: South-Western Cengage Learning.
Heneman, R. L. (2007). Implementing total rewards strategies. SHRM Foundation’s Effective Practice Guidelines Series. Retrieved on 8th June 2014, from http://www. shrm. org/hrd isciplines/benefits/Documents/07RewardsStratReport. pdf
Ruddy, A. (2007). The WorkatWork Handbook of Compensation, Benefits of Compensation.
Scott, G. C. (1996). Government reform in New Zealand. Washington, DC: International Monetary Fund.
WorldatWork (Organization). (2007). The WorldatWork handbook of compensation, benefits & total rewards: A comprehensive guide for HR professionals. Hoboken, N. J: John Wiley & Sons.