Most of my clients would readily say ‘YES’ on the above issue. Especially, at the height of the recession, bigger companies’ unions are fetching for increase in wages, and additional benefits, how does a company cope, much more a struggling small business? Okay, I opened up a bigger issue here. Nevertheless, allow me to let that hang there for the sake of coherence in this post. Going back, patiently, I would explain to my clients the intangible benefits of having competitive benefits (pun intended) for their employees.
Employees’ benefits are indeed cost as far as business accounting is concerned. However, when you look at them on the HRM (Human Resource Management, in the real sense) point of view, these benefits are actually investments in the long haul. Benefits are one of the best motivational reinforcements for employee’s morale and productivity. In fact, many employees would prefer better benefits packaged to higher pays that do not include these. In theory and in business practices, when employees’ needs, like health and medical insurance, are met, they are likely more motivated to work harder and efficiently. Because these things lessen, if not eliminate, their worries.
Additionally, benefits program designs should take into account and balance the features most appropriate for supporting your business goals of managing within your income turnover and the attraction and retention of competent employees.
Providing intangible benefits like life insurance coverage, health and medical insurance plans for their families, retirement packages, among others, are actually common business practice that does not really cost your company much. These cost-effective benefit packages can easily be implemented and managed. These can be mutually shared with the employees as far as premium rates payments or contributions are concerned, or shouldered by the company in full. Either way, these benefits packages are not additional costs compared to having a satisfied list of employees in your roster.
Employees’ benefits are indeed cost as far as business accounting is concerned. However, when you look at them on the HRM (Human Resource Management, in the real sense) point of view, these benefits are actually investments in the long haul. Benefits are one of the best motivational reinforcements for employee’s morale and productivity. In fact, many employees would prefer better benefits packaged to higher pays that do not include these. In theory and in business practices, when employees’ needs, like health and medical insurance, are met, they are likely more motivated to work harder and efficiently. Because these things lessen, if not eliminate, their worries.
Additionally, benefits program designs should take into account and balance the features most appropriate for supporting your business goals of managing within your income turnover and the attraction and retention of competent employees.
Providing intangible benefits like life insurance coverage, health and medical insurance plans for their families, retirement packages, among others, are actually common business practice that does not really cost your company much. These cost-effective benefit packages can easily be implemented and managed. These can be mutually shared with the employees as far as premium rates payments or contributions are concerned, or shouldered by the company in full. Either way, these benefits packages are not additional costs compared to having a satisfied list of employees in your roster.
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About the Author
Nor Franco is the Managing Director and Virtual CEO of nextManager.net. He's a former corporate executive whose passion is bringing out the full potential of HR in Businesses. This time that passion is pursued through Virtual Management. He writes and blogs about his management views and insights here. Follow him on Twitter.
