Organizations Summary: The Transparent Hands Foundation, Compassion International, and Direct Relief
Employees’ compensation is an important factor in ensuring employee involvement and cost management in an organization. Provisions of incentives have been found to influence the employees’ performance especially when the procedure is conducted without bias. This paper will focus on non-governmental organizations for ensuring uniformity in the analysis. Secondly, non-governmental organizations face the challenge of implementing the state formulated laws particularly when the organization has many branches internationally in states with varied regulations controlling the terms of paying or awarding employees any form of incentive. The organizations of interest are The Transparent Hands Foundation, Compassion International, and Direct Relief. These three organizations can be ranked as the top three non-governmental organizations in the United States, which also makes them of special interest for this case analysis.
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The Transparent Hands Foundation majors on providing free surgeries to those who are incapable of affording one but under great need of one in Pakistani (Ali, 2017). The organization depends on crowdsourcing as a key source of funds to run the operations. Willing donors are required to select a patient and donate to the patient through a payment method of their choice and follow up with the clinic until the patient is recovered (Ali, 2017). Compassion International assumes a holistic approach in offering help to poor individuals from their childhood through adulthood (Ali, 2017). The organization accomplishes its course through the belief that it is God's purpose and wish (Ali, 2017). Direct Relief founded by refugee war immigrants to the united states offers help to people in urgent need especially under crisis such as diseases, hunger, war and so on (Ali, 2017).
How the organizations handle Changing and regulatory environment
As noted earlier on, given the international nature of these organizations, they have to comply with legal and regulatory requirements depending on the nature of the legal and regulatory systems they find themselves in under each country. Nonetheless, under its policies, Transparent Hands states that it does not encourage any form of discrimination on any employee on matters about hiring, discharge of any duty, promotion, compensation and benefits in the line of the race, age, religion, sex, disability or any creed (Transparent Hands, 2018). The policy also outlines the organization's willingness to comply with the Pakistani legal requirements and other international regulations (Transparent Hands, 2018).
In contrast, Compassion International takes great care in the selection of the country within which to set a branch. The organization considers legal factors and banking system besides other features as a prerequisite to selection (Compassion International, 2018). Through its department of General Counsel Office, the company has a sub-department of the legal office, which offers guidance on international laws and compliances to ensure that the organization complies with the various national laws (Compassion International, 2018).
Lastly, Direct Relief has formulated a compensation philosophy that guides the way rewards its employees to keep abreast with the international regulations (Direct Relief, 2018). The organization insists on recruiting competent employees who will be worth the compensation plan without discrimination. The philosophy establishes compensation levels as a strategy of classifying who should receive what compensation (Direct Relief, 2018). All the compensations are conducted in a manner that is similar to the non-profit sector depending on the state in which the worker is located.
These organizations expressed willingness to comply with the policies established in each country as a way of maintaining and enhancing their operations. Therefore, it is conclusive to state that the best approach to ensuring a fair compensation program is to counter check the affected nation's legal statements on compensation and employee treatment.
How HRM can maintain cost-effective pay and benefit programs
In the formulation of a cost-effective pay and benefit programs, the Human resources manager (HRM) should have a good grasp of the economy and the legal system of the country in question. Countries have varied economic strengths and fluctuating currency strengths depending on various factors such as gross domestic production (GDP), political environment and external investors and so forth (Saranya, 2016). These factors are not consistent but behave like fluids changing their pattern. The compensation program should be organized in such a manner that it is flexible and capable to undergo modification depending on the legal and financial factors. The programs should be organized from a careful analysis rather than flickering hopes of motivating employees without careful consideration of the impact it will have on an organization (Rosenau, Lal & Lako, 2012).
At some points, the pay and benefits program can be suspended if it does not work and a more effective program rolled out that will enable the employees to work efficiently and the organization to save money. However, precautions should be taken in case a program is to be withdrawn so as not to plunge the employees into an unexpected crisis, which may cause some of them to recoil to old habits as, has been found to be the manner of some employees when a motivating element is removed (Rosenau, Lal & Lako, 2012). The secret is in allocating pay and benefits based on the financial status and making the employees understand the organization's policy in doing so.
Trends and Challenges Facing Employee Benefits
Presently, employee needs vary widely with those of the same employee probably ten or so years ago. There are new policies that have been and keep on beings introduced by the government and other sectors interested in the welfare of the employee (MetLife, n.d). The employers are also forming their tough lines to ensure that their organizations run on low costs while they maximize their profits; generally, the employer’s interested is shifting from the employee and becoming more concentrated on the product production at the expense of the employee (MetLife, n.d). Sadly, some employers believe that they can have same employees without a great hustle and lay off those they feel are not doing their best but constantly reminding them of benefits and compensations caused by the economic crisis that is influencing negatively on the economy (MetLife, n.d). Employees are more satisfied with just having a job regardless of the terms and conditions involved in the job.
In turn, this creates a room for witty employers to exploit the weaker employees and keep back those benefits that should be awarded to the employees. Such trends also suggest that there are weaker policies to protect the employee form the employer's exploitations. Therefore, the major change that is affecting the employee benefits program is the financial crisis, which results in employees taking up jobs that do not have well-defined benefit plans as long as it is a job, employers that are bent on exploitation and a lack of strong policies or a poor policy implementation to safeguard the employees' benefits. The recurrence of such trends may result in the inheritance of a weak compensation and benefits programs to future generations and a strong-armed exploitative employer (Saranya, 2016).
Organizations’ Anticipation of the Financial and Legal Changes
It is possible for an organization to have and maintain a consistent forecast and anticipate the financial and legal changes that effect, more than often, the employees' benefits programs. For an organization to survive under such uncertainties, it is paramount that it should bring on board a team of experts that are experienced in legal matters and forecasts the future of an organization cannot be left to uncertainty unless it is the wish of the managers to get out of business. There are forecasting tools such as as-if scenario analysis, case analysis, trend analysis, technology analysis such as software operations, back casting, road mapping, and Delphi method among others that can be employed for the purpose of predicting the future (Saranya, 2016). A judicious employment of these techniques will ensure some level of confidence in navigating the fluctuating situations.
Conclusion
Organizations today face various challenges that affect their operations in terms of compliance. One specific area affected by legal changes is the employees' benefits program. The employees are vulnerable and need protection from witty employers and weak. Organizations such as the Compassion International, Direct Relief, and Transparent Hands have well-articulated operation policies that provide room for their compliance with the changing legal statements established in the countries they are operating. Such policies allow flexibility and safeguarding of the employees' interests. However, employers should also take care not to be exploited by such means through keeping abreast with the changing legal frameworks and to ensure that they are on the safer side of the issue. Measures should be taken to incorporate a team of analysts and forecasters to help in determining the best policy developments based on the presiding situations. Today, paradigms in the employee benefit programs are shifting given employees need to remain in the market with the financial crisis. Employees join organizations without considering the policies established on benefits just to have jobs and earn. This association has led to exploitation and dwarfing of the employee benefit programs. Continuation of such an association will be productive of a weak employee benefits program and an over-exploitative employer.
References
Compassion International. Frequently Asked Questions . (2018). Retrieved from https://www.compassion.com/about/faq.htm
Compassion International. General Counsel Office. 2018. Retrieved from https://www.compassion.com/employment/departments/general-counsel-office.htm
Direct Relief. (2018). Compensation Philosophy. Retrieved From https://www.directrelief.org/about/finance/compensation/
MetLife. (n.d). Study of employee benefits trends a blueprint for the new benefits economy 9th annual. Retrieved from http://yourbenefitsmanager.com/wp-content/uploads/2011/04/metlife-employee-benefits-trends-study1.pdf
Rosenau, P. V., Lal, L. S., & Lako, C. (2012). Managing pay for performance: aligning social science research with budget predictability. Journal of Healthcare Management, 57 (6), 391-405.
Saranya, R. (2016). Impact assessment of fringe benefits in job satisfaction and employees’ attitude. International Journal of Research in Commerce & Management, 7 (6): 43-46.
Transparent Hands. (2018). Privacy Policy. retrieved from https://www.transparenthands.org/privacy-policy/
