Every employee values the benefits that they get from the organization where they work. In addition, employee benefits have been found to be ranked highly among the factors that promote employee satisfaction. Aside from monetary benefits, employees also value non-monetary benefits such as health insurance, retirement benefits as well as paid time off. Therefore, I highly believe that it is essential for employers to put into consideration employee benefits when compensating their employees.
One of the most vital employee benefits is health insurance. Medical insurance offered to employees will cover the majority of the costs such as hospital rooms, prescription medicine, and even physician fees. Health insurance to employees keeps them healthy and therefore increases the efficiency and productivity of the company. Furthermore, the chances of an employee coming to work sick and infecting the other employees are diminished.
Delegate your assignment to our experts and they will do the rest.
Retirement benefits are also important aspects of employee benefits. Retirement benefits consist of the funds that have been set aside to facilitate the employees with a pension or stipend after their careers have ended. The company may offer the employees defined benefit plans such as the pension plans that are based on the salary as well as the number of years worked. The company can also offer defined contribution plans such as the 401k plan which is tied to the investment returns. This benefit is essential as it increases employee loyalty and reduces the turnover rates while at the same time increases the productivity and efficiency of the employee.
Majority of the employees also value paid time off as an employee benefit. Time off may include holidays, vacation leave and sick leave. Also, the employees earn these benefits while they work and the benefits can be separated or combined for the employee to use when they need. These benefits are essential as they increase the internal competition among the employees. At the same time, they improve the employees’ attitude towards their job as they will have something beneficial to look forward to as a reward for their work.
In sum, employee benefits are essential as they provide more incentives for the employees to work harder towards achieving the company goals. Employees value the benefits possibly more than the employers. Additionally, these benefits promote employee loyalty, effectiveness as well as employee retention. Therefore, aside from the salary earned by the employee, employee benefits also matter in the retention and motivation of the employee for better organizational performance.
