Compensation is one of the major human resource functions in any organization. Human resource management ensures that the employees of an organization are developed to achieve higher competency levels and to enhance creativity and personal fulfilment. Therefore, the compensation plan is an important tool to boost employees’ morale and satisfaction, recognize and reward good performance as well as achieving equity in the organization (Massingham & Tam 2015). To succeed in the development of appropriate compensation and benefits plan, good leadership skills are required to make programs and monitor their execution in order to identify and reward efforts.
Background
ELIM bank limited is a commercial bank in the private sector which has provided financial services to the community for ten years since its conception in 2010. Over some years, the institution has faced some managerial challenges especially in the management of employees. The company has experienced low levels of productivity as indicated by high turnover rates. Apart from the major objective of this company of receiving and lending money to its customers, it has established a vital goal of developing its human resources by creating a room for both self-growth and job satisfaction.
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Compare/Contrast of Industry
ELIM bank salaries and benefits are not as good as other organizations of the same level in the same industry. This change has been attributed to the challenges the institution is currently facing in the management of employees. Many experienced employees have moved to other banks where they feel more satisfied. Comparison of ELIM Bank limited with the other three banks in the New York City in terms of the average salaries and other benefits enjoyed by employees.
| Salaries and Benefits. | ELIM Bank | HSBC Bank | Capital One Bank | Apple Bank for Savings |
| Average Salaries | The salary scale of employees ranges from approximately $24,000 to $134,000 per year. | Pays its employees an average of $49,905 to $156,672 per year | The average salaries ranges from $42,896 to $225,803 per year | The approximate salaries ranges from $28,000 to $247,000 per year. |
| Other Benefits | ELIM Bank’s employees enjoy the following benefits apart from salaries; medical insurance cover, retirement benefits, and paid annual leaves | HSBS Bank offers other benefits to its employees apart from a comprehensive, market-competitive pay (Sulthana & Chacko 2015). These benefits may include; annual leave, fixed pay, insurance and savings, among other personal and health development plans | Capital One Bank gives it employees the following benefits; various insurance covers, wellness programs, retirement programs, employee discount, paid time off, parental leave, and other assistant programs. | Apple Bank for Savings provide the following benefits to its employees; retirement and financial benefits, a wide variety of health and insurance benefits, paid holidays and leaves, paid sick leave, and education and training. |
Therefore, it is evident from the above analysis that ELIM Bank limited pays l small amounts of wages compared to other institutions of the same level. To solve this disparity, a comprehensive compensation and benefits plan should be developed to increase the morale of employees and satisfaction. This initiative would eventually lead to improved productivity and hence more profit margins for the company.
Employee Engagement
Employees’ engagement is very important in the management of organizations since it impacts on profitability, productivity personnel, turnovers, absenteeism, and safety incidences. Therefore, employees can be engaged in different ways including the use of the right workers' engagement metrics since it can affect the likelihood to enhance changes in the overall performance of the institution (Freeborough & Patterson 2016). Besides, viewing engagement at the firm or local level since transformation can only be effected at the lower levels with support from the top management. Selection of managers of the right capacity to manage people influences the level of engagement of workers. The hiring of managers should consider a person with unique managerial skills and talent to be able to organize people and initiate workers engagement (Devendhiran & Wesley 2017). More so, engagement can be enhanced by coaching managers on how to better engage their employees since they are key in making engagement plans monitoring the whole process. Additionally, specifying the engagement goals in a SMART way would help employees to understand and act upon them daily. Another essential way of enhancing engagements is by identifying ways of coordinating and connecting with all employee. This connection is essential because employees are diverse in different ways such as gender, age among other features. The engaged employees are can, therefore, will work harder due to the strong emotional connection with an organization.
Proposal for Benefits
ELIM bank can improve its productivity by providing workers with other benefits apart from the salaries. Additionally, the salaries should also be matched to competitive levels in the industry to promote the satisfaction of employees who would improve the productivity of the firm. These benefits may include employee discount to enhance them to access loans to develop themselves and other financial benefits such as paid leaves. Also, comprehensive insurance programs, parental leaves, paid time off, as well as education and training programs would increase the satisfaction of workers in the organization (Onyebu & Omotayo 2017). Other assistance initiatives such as wellness program would also appreciate the efforts of the employee, hence increasing their attachment with the organization. Besides, a good retirement plan would guarantee workers financial security in future as they age, and this improves the loyalty to the company.
Conclusion
Employees are motivated by the recognition of their work and efforts through rewards and engagements. In the 21stcentury, workers expect more benefits and compensation in terms of both financial as well as other wellness programs. Therefore, ELIM bank should conduct extensive research to identify the right reward and compensation plans. These plans may range from increased salaries, training, paid leaves, and even promotions. All these initiatives would create an environment for career growth and increased effectiveness as well as the morale of the workers. The ultimate benefit of the company will be increased profit and overall productivity of the organization. Good leadership is also key to the attainment of any kind of engagement in a firm.
References
Devendhiran, S., & Wesley, J. R. (2017). Spirituality at work: Enhancing levels of employee engagement. Development and Learning in Organizations: An International Journal.
Freeborough, R., & Patterson, K. (2016). Exploring the effect of transformational leadership on nonprofit leader engagement. Servant Leadership: Theory & Practice, 2(1), 4.
Massingham, P. R., & Tam, L. (2015). The relationship between human capital, value creation and employee reward. Journal of intellectual capital.
Onyebu, C. M., & Omotayo, O. A. R. (2017). Employee Job Satisfaction and Organizational Performance: An Insight from Selected Hotels in Lagos Nigeria. Kuwait Chapter of Arabian Journal of Business and Management Review, 33(5467), 1-12.
Sulthana, M. N., & Chacko, J. V. (2015). A Study on the effectiveness of Human Resource Information Systemin HSBC Bank in Oman. International Journal in IT & Engineering, 3(10), 48-55.
