Flexible work schedules, available day care, and a safe working environment are just some of the nonwage benefits that can be offered to attract and retain quality employees. As such, monetary compensation is not the sole factor for retaining employees.
Write a paper that compares and contrasts various forms of compensation, incentives, and benefits. What are the advantages and disadvantages to the employer offering these different benefits? Include an analysis of issues that an organization and employees may face in regards to the nonwage benefits.
Support your paper with at least five (5) resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 5-7 pages (not including title and reference pages).© BrainMass Inc. brainmass.com October 17, 2018, 1:26 pm ad1c9bdddf
In accordance with BrainMass standards this is not a hand in ready paper but is only background help.
There are two key forms of compensation. The first is wage compensation and the other is non wage compensation. Non wage compensation are any benefit that employers give employees apart from their salaries or hourly wage. Non wage compensation is called benefits, fringe benefits, or perks. There are several advantages and disadvantages to the employer that offers benefits to his employees. There is a large variety of benefits that are offered by employers. Some of the benefits include group health insurance at low rates, life insurance, dental plans, prescription plans, vision plans, long term care insurance plans, and retirement plans. In addition, employers offer benefits such as paid holidays, paid sick days, and maternity leave. Firms also offer employees discounts at hotels, theme parks, and theaters. Other benefits include child care benefits, transportation, reallocation assistance, and legal assistance.
The key advantages that employers seek by offering these benefits are raising employee satisfaction, corporate loyalty, and worker retention. These benefits are perceived by employers as devices to attract and retain labor. From the perspective of employer he offers benefits to employees that are not taxed in the hands of the employee. These are excluded from the gross salaries of employees. However, some of these benefits are taxable for the employer(f). For example, if safety devices are required to protect himself from injuries, these benefits are not tax deductible for the employer. Further benefits that help provide health coverage for employees are not subject to federal income tax. From the perspective of the employer, providing benefits that are not included in the gross income of the employee helps build employee loyalty. Tax free employee benefits include health insurance up to a certain amount, health savings account, dependent care assistance, educational assistance, reimbursements for moving expenses, employee stock options, and group term life insurance below certain policy value. There are several types of benefits that are excluded from taxation. These include profit sharing plans, money purchase plans, stock bonus plans, and other qualified employee benefits plans. Offering employee discounts, supplemental unemployment benefits or commuting benefits are also excluded from employee's compensation. Similarly, cafeteria plans including low cost benefits are also excluded. From the perspective of employers providing non wage benefits help attract and retain better qualified employees. ...
This solution explains Compensation, Incentives, Benefits, and Safety/Health Issues. The sources used are also included in the solution.
Employee Motivation Theories
Although it may seem fairly obvious that receiving praise and recognition from one's company is a motivating experience, it is sad that many companies are failing miserably when it comes to saying thanks to their employees. According to Curt Coffman, global practice leader at Gallup, 71 percent of US workers are "disengaged," essentially meaning that they couldn't care less about their organization. Coffman states, "We're operating at one-quarter of the capacity in terms of managing human capital. It's alarming." Employee recognition programs, which became more popular as the US economy shifted from industrial to knowledge based, can be an effective way to motivate employees and make them feel valued. In many cases, however, recognition programs are doing "more harm than good," according to Coffman.
Consider Ko, a 50-year-old former employee of a dotcom in California. Her company proudly instituted a rewards program designed to motivate employees. What were the rewards for a job well done? Employees would receive a badge that read "U Done Good" and, each year, would receive a T-shirt as a means of annual recognition. Once an employee received 10 "U Done Good" badges, he or she could trade them in for something bigger and better—a paperweight. Ko states that she would have preferred a raise. "It was patronizing. There wasn't any deep thought involved in any of this." To make matters worse, she says, the badges were handed out arbitrarily and were not tied to performance. And what about those T-shirts? Ko states that the company instilled a strict dress code, so employees couldn't even wear the shirts if they wanted to do so. Needless to say, the employee recognition program seemed like an empty gesture rather than a motivator.
Even programs that provide employees with more expensive rewards can backfire, especially if the rewards are given insincerely. Eric Lange, an employee of a trucking company, recalls a time when one of the company's vice presidents achieved a major financial goal for the company. The vice president, who worked in an office next to Lange, received a Cadillac Seville as his company car and a new Rolex wristwatch that cost the company $10,000. Both were lavish gifts, but the way they were distributed left a sour taste in the vice president's mouth. He entered his office to find the Rolex in a cheap cardboard box sitting on his desk, along with a brief letter explaining that he would be receiving a 1099 tax form so he could pay taxes on the watch. Lange states of the vice president, "He came into my office, which was right next door, and said, 'Can you believe this?'" A mere 2 months later, the vice president pawned the watch. Lange explains, "It had absolutely no meaning for him."
Such experiences resonate with employees who may find more value in a sincere pat on the back than in gifts from management that either are meaningless or aren't conveyed with respect or sincerity. However, sincere pats on the back may be hard to come by. A Gallup poll found that 61 percent of employees stated that they hadn't received a sincere thank-you from management in the past year. Findings such as these are troubling, as verbal rewards are not only inexpensive for companies to hand out but also quick and easy to distribute. Of course, verbal rewards do need to be paired sometimes with tangible benefits that employees value—after all, money talks. In addition, when praising employees for a job well done, managers need to ensure that the praise is given in conjunction with the specific accomplishment. In this way, employees may not only feel valued by their organization but will also know what actions to take to be rewarded in the future.
Select any four of the following motivation theories you read about this week:
•Self Determination Theory
•Goal Setting Theory
•Equity Theory/Organizational Justice
Based on the above reading and the knowledge gained from your assigned readings, write a paper that describes how you would use each theory to motivate your employees. Be very detailed and support what you say with research.
Support your responses with examples.
Cite any sources in APA format.View Full Posting Details