Each and every organization has a strategy, mission and objectives that they thrive to achieve. In order to achieve these objectives, the organization should make sure their enough facilities, equipment, skilled workforce and sufficient elements of management. There are some companies that use robots and automated machines in doing most of their activities in the production of goods and services. However, as much as the robots are involved,
there will always exist a personnel or workforce that monitor all the operations. Employees are the blood of an organization and without them a company can terribly fail beyond their expectation. Therefore, an organization has to ensure that it satisfies its employees in all legal ways to motivate them in their performers which will consequently translate to the productivity of the company. Besides, the company should identify people with sufficient and required skills that the organization needs prior to committing them in operations. Not only should the company identify these employees and recruit them, but also, it should find a strategic way of developing and improving their skill, and retaining them.
Approaches in Compensation
The most motivating factor for almost all employees in an organization is compensation or wages. Although there are many approaches or ways that a company can use in compensating their employees, some companies still use the traditional methods of compensation which is a demotivating factor to some of the employees who execute most of their organizations effort. The new or modern approaches are, in fact, most effective which often involves minimal cost or even no cost. Some of the approaches that SEIIC Company should consider during compensation designation include: non-performance based programs, relationship-building program, and application issues.
Non-performance based programs.
Non-performance based program is a program that rewards an employee complimenting their posts which assume their performance in terms of duties. Each and every post that is advertised by a company has it duties which are expected to be carried out by the person who will occupy that position. Some of the non-performance based programs include: TIPS, core hours, casual dress program, employee discounts for company goods, deserve a discount program, and service on the spot. Some of the advantages of this approach are that, it gives the employees the ability to be flexible regarding working hours on-site. Besides, the approach provides the employees with tips for improving their performance. The approach also offers a discount to employees on certain products or services purchased from the company (Loofbourrow 2001). However, the approach may cause conflict in dealing with the choice of working hours which might be preferred by most of the employees.
Relationship-building program
This is the type of compensation that does not involve the exchange of money or merchandise. It entails a set of interactions which creates an open communication and break down barriers which are valued by the workforce and improves their performance and motivation. Some of the components involved here include executive coffee breaks, stand by me, and cooperative charity day. The most advantage of this approach is that it promotes open communication which in turn contributes to healthy working relationships. However, it has its shortcoming considering that communication is open and an employee can communicate to any employee despite the fact that he/she should follow a certain protocol in addressing a given issue.
Application issues.
The main reason of finding an alternative approach to compensation is to promote employees performance at the same time incurring relatively a lesser amount of cost. Most often, supervisors, executives, and HR professionals dont have a time finding alternatives for compensation which only can be approached by application issues such as role incentive programs that are involved in supporting the organizations overall strategy. The advantage of this approach is that it gathers input from a cross-section of employees to select the programs to be used in compensation. This includes feedbacks and actions to be taken (Parmenter 2002). However, this approach can be used as a compensation scheme that can be modified to satisfy the interests of an individual who is in charge of it in the designation stage.
Approaches in Benefits
Incentives and bonus plan
Every organization wishes to retain and impress its employees, and one of the ways it can do this is by offering benefits. Some of the recent approaches that SEIIC Company should consider include incentive and bonus plans, benefits plan, and the overall taxes. Incentives and bonus plans ought to have guidelines to avoid any confusion. The approach should be identified as a guaranteed benefit, but instead it should be gauged by the performance of an individual, group or company. For instance, if the annual bonuses are given regardless of performance, it no longer acts as a motivating factor. Therefore, bonuses and incentives should only be reserved for persons who perform beyond their daily performance to help the company exceed its profitability (Beadle 2003). The advantage of this approach is that it gives the employees morale to perform well at the same time benefiting the organization. However, the approach can be disadvantageous if the approach is manipulated.
Benefit plan
Offering benefits is a very significant incentive for employees, but might be very costly for the company to bear. Therefore, when redesigning the benefits approach, SEIIC Company should consider both direct costs and long-term expenses. Increasing or decreasing benefits can be very demoralizing especially if there are no benefits plan. The advantage of a benefit plan is that it avoids demoralization of employees efforts by ensuring that benefits plan is in order in consideration of different factors (Ellig 2001). However, since the benefit plan is developed by a human being, it is not guaranteed that the plan will work out as expected, and therefore any mistake in the benefit plan can cause higher costs or demoralization hence low turnover and productivity.
Overall taxes
The company should also consider things such as Medicare tax and social security, unemployment insurance for both federal and state entities, and compensation insurance. This is to ensure that the company follows the rules and regulations that the law requires an employer to follow in protecting its employees from all possible kinds of risks. The advantage of this approach is that employees feel recognized and protected by the law hence giving them confidence to give sufficient output. However, the approach can be manipulated by the government officials putting the company into a critical situation in responding the artificial needs made by corrupt leaders.
Intrinsic and Extrinsic Motivators
Intrinsic motivators are those factors that affect individual feelings. Therefore, SEIIC Company should identify factors that inject positive feelings of the employee which translates to his/her productivity. Some of the factors that should be identified include challenge, control, and competition. Those goals that need activity at a constantly optimal level of difficulty, tend to motivate employees towards personally meaningful goals. Intrinsic motivators promote individuals productivity towards the intended goal, but it can be very demoralizing if the motivating factor is not regulated, or considered in one way or the other. Extrinsic motivators are those elements that motivate an individual due to his/her performance. The main aim of extrinsic motivator is to uphold the good behavior or way of conduct that results in a good outcome. Some of these motivators include financial rewards, praise, and recognition. The drive for money and success can often get peoples feet marching. Regularly offering sincere and genuine compliments is a strong extrinsic motivational factor. The advantage of extrinsic motivator is that employees feel appreciated for what they contribute to the organization hence it translates to good performance and high productivity (Ng and Ng 2015). Contrary, extrinsic motivators can cause detrimental effects on employees performance if the corrective measure is not well applied.
Having considered all the above approaches in redesigning its HRM the company should establish a plan that will ensure consistency and development of the organizations activity. Its important for the organization to keep track of an ongoing, regular influx of new talent that results to new experiences and ideas along with a different perspective. Compensation should be done based in part of seniority with the organization, which shows the new employees that the business treasures workers who choose to stay with the organization for a longer period of time.
References
Beadle, C. E. 2003. "Revitalizing Employee Benefits Programs". Compensation & Benefits Review 12 (2): 61-66. doi:10.1177/088636878001200208.
Ellig, B. R. 2001. "Employee Benefit Planning: Utilizing Employee Preferences". Compensation & Benefits Review 8 (2): 39-50. doi:10.1177/088636877600800204.
Loofbourrow, T. 2001. "Getting Personal with Employee Self-Service". Compensation & Benefits Review 33 (3): 47-50. doi:10.1177/08863680122098306.
McFadden, D. W. 2004. "Employee Fringe Benefits Expense". Compensation & Benefits Review 21 (6): 66-69. doi:10.1177/088636878902100610.
Ng, Chiew Fen and Poh Kiat Ng. 2015. "A Review of Intrinsic and Extrinsic Motivations of ESL Learners". International Journal of Languages, Literature and Linguistics 1 (2): 98-105. doi:10.7763/ijlll. 2015.v1.20.
O'Connell, S. E. 2002. "Self-Administering Employee Benefits". Compensation & Benefits Review 23 (1): 71-73. Doi: 10.1177/088636879102300108.
Parmenter, E. M. 2002. "Employee Benefit Compliance Checklist". Compensation & Benefits Review34 (3): 29-39. Doi: 10.1177/088636870203400306.
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