Employee Benefits as a Company Policy

Introduction

It is vital for great and influential company to present the points on strategic evaluation of employees’ benefits and their further going up the career ladder. The point is that many even global corporations lost their bygone positions among the closest competitors due to a lack of professional liability towards employees. Most of the companies strive to gain more profits in financial prospect – and that is right when referring to the extent of the main value for the employer.

On the other hand, the administrations of such companies can miss the significant part of the whole productive mechanism incorporated in the staff. That is why, looking at the world managerial and economic practice, it is reliable to follow such steps in rebuilding of the effective work of a company according to its internal constituent embodied in the personnel as:

1. Improve employee work satisfaction;
2. Meet employee health and security requirements;
3. Attract and motivate employees;
4. Retain top-performing employees;
5. Maintain a favorable competitive position. (Bohlander & Snell 471)

Strategical points

These very objectives can urge their potential afterwards power on the quality of the work process and obtaining a communicative part of it, which in return can provide the administration with perfect information about the status quo in the company. Applying to the statistical data in the United States the situation tends to have additional glimpses on the prospects dealing with benefits for employees in figures. At this rate the official sources inform about following points: “According to a 2003 U.S. Chamber of Commerce study, the cost of employee benefits in that year averaged 42.3 percent of payroll, as shown in Highlights in HRM 3.15 The average distribution of these benefits was $18,000 per employee per year.” (Bohlander & Snell 475)

Medicare and insurance significance

Thus, social security insurance and Medicare programs are constituted by law and continued with other types of insurance, unemployment and worker’s compensation, it is a standpoint for the company not to lose the trust of employees and credibility before the state government.

As”healthcare spending has been steadily rising as a share of the economy, up from 5.29 percent in 1950 to more than 16 percent in 2004,” so special attention should cover the issues of primordial safety objectives to protect the employees from possible dangers of physical or other characters. The stability of the company will then be estimated due to the expenditures of it used for the staff improvements and further development ithin potential competitors.

Here the fact of allies engagement is important, because participating with different bodies of power in various fields of people’s interaction will undoubtedly provide the base for efficient elaboration and stability of employees in their workplaces. Moreover, the tendency of employees to save as much money as possible is rather grave now because of the economic crisis. That is why “a current trend is for organizations to allow their employees’ considerable control over the investment of their 401(k) savings, including investing in the stock of other companies.” (Bohlander & Snell 493)

Conclusion

Thus, taking into account all objective discussed and other staying behind the screens, the policy of the company should strive at the approach of better education and instructing the personnel with points on the material and social benefits for their stable work and activities after it.

Reference

Bohlander, G. W., & Snell, S. A., (2007). Managing human resources (14th ed.). Florence, KY: Thomson Learning Higher Education.