Human resource management is an essential department in an organization for its growth and increased productivity. Human resource management is a group of people who work together to ensure that the available human resources are linked to the goals and objectives of the company (HR Voices, 2018a). Linking human resources to the goals and objectives of the company with close monitoring from human resource management helps in increasing the production of the company. Moreover, human resource management has a huge role in the growth of a company. Companies that have a strategized and quality human resource management have a big difference from companies whose human resource department is not productive and low quality. Huge level of productions can be seen in companies with strategized human resource departments than those without. Therefore, a company needs to have a good human resource management department as it has some benefits to both the company and the employee.
Benefits of Human Resource Management
Human resource management has different roles they play to ensure the success of a company. Issues such as performance, organizational development, health and wellness, benefits and compensation, employee motivation and training of employees are dealt with the human resource management. Employee benefits are conclusive of retirement plans, health benefits, life insurance, disability insurance, vacation and employee stock ownership plans. Human resource management is aware that benefits hold particular value in holding employees in place. Human resource is aware that in order to keep quality employees, it requires the right benefits package. However, it is important to note that some benefits are mandatory as regulated by the government while others are offered freely by the company in order to fulfill the needs of employees.
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Importance of Benefits
Benefits offered to employees are important in an organization profile. As much as the employees benefit from the benefit, so does the company. Therefore there is some importance of offering benefits to employees.
Benefits attract the top talented employees. Benefits can improve the profile of an organization as people want to associate themselves with companies that offer the best benefits. Moreover, people want to be in the best financial position in their lives. Companies with the best benefits package attract the most talented potential employees making the human resource department in the company have a variety to choose from. Having a wide variety of potential employees to choose from gives them the best opportunity to employ top talented people creating a good and quality group of employees in the company.
Offering benefits to employees increases the employee’s motivation. Employees that offer the best benefits package portray their love and care of their employees. Employees are happy to know that the company they are working for values them as workers and most importantly as human beings. This increases the morale and motivation of the employees as they feel better about coming into work. Most employees look forward to coming to work when they are aware that there are additional bonuses and commissions through benefits. Additionally, they are motivated to work overtime due to overtime payments. This increases the production of the company.
Another importance of offering benefits packages to employees is that it boosts employee’s loyalty, and there is increased productivity and profitability. The human resource management can retain its employees through benefits as people want to stay where they get the best offer of benefits. For example, when the human resource management take care of the health well-being of its employees, giving employees the best health experience, the employees can prefer to remain and work for the company (Kaiser, 2019). Therefore, human resource management plays a huge part in the growth, productivity and profitability of an organization.
Future Trends and Developments of Benefits
Several trends have been designed to transform and re-shape the future of employee's benefits. The future of employee benefits is slowly changing to accommodate the changing economy of the world. In the beginning, employee benefits were given to those who worked in the company for individual years and achieved some specific goals outlined by the company. People were given these benefits after their retirement to ensure the safety of their future. Recently, this has significantly changed as benefits are given to employees even before their retirement age. However, changes are still being made to change the experience of the benefits from 'later' to 'now'.
The future trends of benefits are that companies will start to offer stipends to employees to pay for their vacations. This will ensure that employees do not have to worry about the finances going to be spent during vacation as the company will handle that. This ensures that employees thoroughly enjoy their vacation without financial stress and come back to work fully energized. Later in the future, the stipends will spread to a stipend for education and weekend activities.
Other than stipends, employees will be offered non-traditional benefits in order to reduce financial stress. One way companies need is to increase productivity, and they have strategized a plan on which to extract full energy from their employees. Companies will do this by making sure that their employees financially stress free; therefore, companies have started to include the nontraditional benefits to the benefit package. The nontraditional benefits include student loan payback assistance, generous retirement plans, overtime payments, rewards and supplemental insurance products.
Companies will begin to offer direct contact for employees with health providers. In years to come, employees will fully depend on human resource management for their health needs. (HR Voices, 2018b). This will be a great benefit for employees as health providers are brought directly to them. This means that they will be given a chance to acquire the best medical care they need regardless of their status as companies want to ensure great and best medical care to their employees. Furthermore, employees will get family-friendly faster, they will have a chance to get voluntary benefits to a personal level, and they will also get emotional health benefits.
Moreover, benefits in future years are shifting from finances to other additional compensation. Human resource management is responsible for coaching of employees hence coaching is upgrading in the future years (HR Voices, 2018a). Employees are given the benefits to be trained for free. Many trainings employees get they have to pay for them to attend however in this case, the human resource management will take over and cater for training, onboarding classes and coaching for their employees. This is a great benefit for employees and it will do great to reduce employees turn over.
In conclusion, benefits are a great determinant of employees' motivation to a company affecting its productivity and profitability. Human resource management, therefore, has a huge responsibility in retaining the motivation of employees, retaining employees and recruiting the most talented potential employees. Benefits were there decades ago, they have transformed and evolved to adjust to the recent economy and are still transforming in accordance with the development of the world's economy. Employees' benefits will forever be there as long as competition in the economy is present.
References
Kaiser, H. (2019). Stopping Burnout with a Holistic Employee Experience. Toolbox . Retrieved on 20 November 2019, form https://hr.toolbox.com/blogs/henrykaiser/stopping-burnout-with-a-holistic-employee-experience-071119
HR Voices. (2018a). Modern Performance Management Techniques for the Future HR. Toolbox. Retrieved on 20 November 2019, form https://hr.toolbox.com/articles/modern-performance-management-techniques-for-the-future-of-hr
HR Voices. (2018b). Leading by example: The health of an organization is dependent upon HR. Toolbox. Retrieved on 20 November 2019, form https://hr.toolbox.com/articles/leading-by-example-the-health-of-an-organization-is-dependent-upon-hr
