How
Employee Benefit program effects employee turnover.
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It is said that
benefits are the second most important factor employee consider after salary or
wage. It is important that company does have a proper benefit program which
helps to hire talented staff and retain staff.
(IPM, 2010).
When I was
handling HR with my previous employer, I have experience that during the final
interview most of candidates are asking about benefits do they have once
joined. And then they start comparing existing benefits do they have with
current employer. If there is less benefits, then candidates would think twice
whether to join or not.
According
to Klonoski (2016), Staff consider as benefits as indirect forms of
compensation, something given in addition to base compensation and not related
to doing extra work, accomplishing certain goals, or working non-standards
hours. Pension scheme, Insurance scheme, special leaves, Flexible working
hours, Bonus, Medical Allowances, Transport Allowance, Mobile phone and paid
sim package are some of Benefits which companies can offer to its staff.
With my current job experience I have identified, there are various benefit programs which are running through government in different regions. Social Security Act is something that most of these counties are functioning. It covers all working staff as an employee benefit program. Here below table 1.0 explained some benefits given under Special Security act by different counties for its working staff based on my current working experience.
If employees are not satisfied with the benefits
given, they tend to move to other organizations with better benefit packages.
This can cost an organization so much, especially if they are losing a key and
very competent staff to a competitor. Therefore, it is so important to have a
proper benefit program for any organization. (Bohlander
& Snell, 2012).
When
deciding a proper Benefit program, companies can consider below elements to
make it successful.
- Should gather competitive benefits information – Companies can gather information related to benefits from different associates like National Compensation survey etc. Large organization can simply purchase a firm which do benefits, and smaller firms can collect same from their competitor’s websites, internal information which are from both current and former staff or from free sources. (Bohlander & Snell, 2012).
- Allowing for employee involvement – Having employees participate in designing benefits programs helps ensure that management is moving in the direction of satisfying employee wants. (Bohlander & Snell, 2012).
- Flexible Benefits for a diverse workforce – Employee benefit programs must reflect the changes that are occurring within our society. There should be benefit plans that enable individual employees to choose the benefits that are best suited to their needs. (Bohlander & Snell, 2012).
- Administering Benefits – The benefit system should be able to access at any time for employees without contacting to HR. By having online benefit system will help to have cost savings in benefit administration. (Bohlander & Snell, 2012).
Bohlander G W & Snell S A. (2012) Principles of Human Resource Management. 16th Edition. South-Western: Cengage Learning.
Certificate
Course in HRM, (2010) Sri Lanka: IPM.
Klonoski R. (2016) Defining Employee Benefits: A Managerial
Perspective. International Journal of HR Studies, 6 (2), 52-72.
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Hello Dulanjana, I agree with your post. Employee turnover generally considered that if the job satisfaction and organizational commitment is high, employee turnover rate becomes low (Khalid, W. and Khan, T. N., 2013).
ReplyDeleteHi Dear, Yes. I totally agreed with your comment. One of a determine factor of job satisfaction is Employee benefits which I have explained in this post and is have a direct impact to the employee turnover. Job satisfaction is something in which employee is happy and satisfied with their job and they are more focused toward their job, because they get so much employee benefits from their employer. The benefits which are provided to an employee are directly impacts on their mind and satisfaction level. (Bansal & Garg, 2001)
DeleteDear Dulanjana. I totally agreed to your blog. If your employees are happy at work, the engagement level with your job role also very high and responsibilities are delivered on time. Employers can increase employee retention and engagement through a number of practical people-focused strategies (International Journal of Development Research, February, 2014)
ReplyDeleteHello Dear, Yes correct. Developing a proper employee benefit program is one of practical people-focused strategy that any company can practice to retain staff. (Klonoski, 2016).
DeleteHi Dulanjana, I would like to comment on your 'competitive benefits'As competition for experienced accounting and finance professionals increases, organizations are looking for ways to give themselves an edge. An attractive benefits package can often make the difference in recruiting and retaining employees. As a result, many companies are reassessing their offerings. If you haven't recently evaluated your benefits plan and how it's being promoted, you may be putting your company or department at a disadvantage.
ReplyDelete(Messmer.2006)