Business

Employee compensation and benefits

Running Head: ABBREVIATED OF YOUR CHOICE (all caps) and Section # of Employee Compensation and Benefits The employees of a company are considered as the most important one of its factors of production. A company with efficient workers is more likely to be successful as the work of the employees has a direct impact over the performance of the entire organization. The management of the organization’s most valuable assets-the employees, is known as Human resource management. Human resource management involves the process of recruitment, selection, training, compensating and maintaining the work force in a way that they are best able to achieve the objectives of the organization. Discussion There are a plethora of different methods for compensating employees in an organization. These methods have evolved over time with respect to the changing needs of the workers and their expectations from the job. Effective policies regarding employee compensation and benefits lead to various benefits to the company including raised levels of motivation and productivity and employee retention. Health is an inevitable pertinent part of everyone’s life. It is one of the basic needs of human beings is to be healthy and fit. Health hazards are unforeseen and with the passage of time, the medical implications are increasing and so are the costs associated with health care. A modern approach to employee compensation and benefits is to provide different forms of rewards and returns to the employees. Health care benefits are employee benefits that allow the company to cover healthcare costs. In countries where health care is not provided by national health system, this form of employee benefit assists employees in decreasing the burden of medical costs. One of the main rationales of HRM is to ensure the well being of the employees and bring out the best from every one. It is important that the employees are satisfied and content with the job as well as the rewards. Getting healthcare can take substantial amount of money especially for the employees that have families. Companies that provide healthcare benefits are preferred by employees and it gives them a security. Having provided with healthcare benefits makes the employees feel correlated with the organization and gives them a sense of purpose and belonging. The type and coverage of the health care plan can vary from company to company. While some may offer complete insurance policies and extensive coverage of healthcare costs, other may only provide a certain percentage. Employees may be offered insurance and medical compensation after they have served the company for a set period of time, or right away. The level of coverage differs and may be dependent upon the designation and job status of the employees. Companies can offer group benefits to the employees under which they can be offered a number of healthcare and managed care plans depending upon their needs. Indemnity plans may also be offered under which people can reimburse their medical bills. Standard healthcare benefits would offer basic healthcare although employees may opt for additional plans such as vision care or dental care. However, there are seldom any plans for elective procedures such as plastic surgery. Conclusion In order for companies to provide a safe environment for workers and to help them reach their levels of satisfaction it is imperative to understand the inherent needs of the employees. Healthcare is a basic necessity and it is expensive for people to pay for the high prices of healthcare. The provision of healthcare benefits can be in various forms such as specialized, standard, full coverage or part coverage. The level of benefits depends upon a number of factors. References 1. Mathis, R. L., amp. 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