The goal of most companies is to employ qualified personnel and maintain their loyalty and productivity. To achieve this, a company provides packages such as bonuses, benefits, and incentives. Since employees differ, corporations offer a wide range of options to accommodate individual needs. Therefore, being a manager, one has to provide incentives to the team members according to the type of work they perform.
Benefits being part of compensation among employees serve a great deal. The most coveted benefits are given in the form of retirement and health insurance. Moreover, benefits can be offered in the form of paid sick days, vacations, and life insurance. Since these benefits are highly significant, managers are responsible for making employees know what is available at their disposal. These benefits come with different costs; therefore, an employer should choose wisely. Health benefits are paid in terms of insurance, but some corporations provide facilities for exercise and stress-reducing programs. On the other hand, paid vacation may involve payment of minimal vacation such as hourly, while retirement is paid after a person has left the company, that is, after retiring. Retirement can be pension or contribution plans.
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Incentives are given to employees to boost their productivity. It can be paid either as monetary incentives or non-monetary incentives. Monetary incentives are paid in terms of money, while non-monetary could be paid as security of service, recognition, job enrichment, and suggestion scheme and promotion opportunities. They are instrumental in improving employees’ output, increase motivation and in some cases, loyalty to the organization in question ( Patiar et al., 2020).
Bonuses are paid after the completion of particular workplace undertakings. They are performance-based and comes in different forms. They can be spot bonuses, retention bonuses, referral bonuses or project- based bonuses. Providing compensation to employees is effective and serves as motivation ( Pangastuti et al., 2020). Loyalty and productivity are reinforced when they are offered. In order to be more effective, a manager should determine what the competitors are paying. Also, it is important to establish smart goals.
References
Pangastuti, P. A. D., Sukirno, S., & Efendi, R. (2020). The Effect of Work Motivation and Compensation on Employee Performance. International Journal of Multicultural and Multireligious Understanding , 7 (3), 292-299.
Patiar, A., & Wang, Y. (2020). Managers' leadership, compensation and benefits, and departments’ performance: Evidence from upscale hotels in Australia. Journal of Hospitality and Tourism Management , 42 , 29-39.
