Case Study: A Perky Way to Productivity
Describe the importance of employee benefits as a strategic component of fulfilling the goals of HRM.
Employee benefits are the single most important motivator to maintaining an experienced workforce. Longevity of employees in a company contributes to their financial stability. Depending on the company it can make or break obtaining talented employees. While applicants are being interviewed for a job, so is the company. Reports of high turnovers do contribute to missed opportunities in gaining talented employees. The cost of turnover is very high. Salaries that are given to employees are not in the control of HRM, benefit packages are an achievable goal. In any scenario, it is working with what you can control and not focus on what you cannot control leads to success. A creative benefit package can raise morale and give employees the experience of making more. When I talk about my salary, I will say that I am making $5,000 more than what goes into my paycheck. Having an HRM that is creative is why firms have them. The mission of HRM in all firms is not an easy one and they have to constantly stay in touch with the budget. Smart businesses would budget themselves to give HRM as much flexibility to spend as possible. Good strategic planning can ultimately save the company a lot of money. HRM’s ultimate goal would be to accomplish this. The more extrinsic satisfaction the longer employees will feel committed to the work place and not take off for that extra $1,000.
Benefits are a creative way that HRM can decrease this cost. Employees want to achieve more than a competitive salary out of their employer, the right job description does come into play and that’s where the benefits can make the difference. Benefits do not cost as much and the better an HRM department can pull benefits in, the happier the employee